Update: I sold these shares of HPQ and you can read how much I made or lost here.
I’ve just bought another stock for my $150,0000 portfolio: 500 shares of HPQ. I made a video showing me buying the stock for my TD Ameritrade account and you can see how easy buying a stock is. Please enlarge the video to full screen to get a better view.
Reasons I Bought Hewlett Packard
1) HPQ is a in the midst of a resurgance as you can see in the chart so obviously I am hoping that continues. In late November they announced earnings that were above expectations which indicates they remain on track in their turnaround story.
2) The other big reason I bought this stock is because CEO Meg Whitman has come out and stated that Hewlett Packard is going to aggressively enter the 3D printer market sometime in 2014. I have been watching the 3D printer stocks (DDD and SSYS) and missed that opportunity by not buying. I think both of those two companies are too expensive now and hope that HPQ will benefit down the road from this new industry if they can figure out how to make 3D printers that cost less. This stock is a long term play for me and I am willing to wait (and hope) that they will become a player in 3D printing.
3) HPQ has a dividend of about 2.3% and I prefer stocks that pay dividends.
Admittedly, the main catalyst for me is the 3D printing angle. That may or may not ever become a profitable business but HPQ is a big company that should have the wherewithal to give it a strong attempt. There is a lot of hype in the 3D printing stocks and I’m sure no one really understands exactly what the potential is for that market. I’m hoping Hewlett-Packard can get a piece of the pie. While I wait, they are giving me a decent dividend and the possible continuation of their turnaround.
Please check out the list of all my stock buys and sells to see what else I own in my $150,000 portfolio and go to my “Start Here” page if you would like to get a better idea of what this website is about.