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Is The Printer/PC Unit Spin-Off By Hewlett-Packard A Bad Idea?

While many businesses I follow of late, including Energizer (ENR) and eBay (EBAY), have decided 2015 is a good time to divest and spin off large "unrelated" business units into separate publicly traded companies, not all spin-offs are a good idea in the long run.

Case in point is the decision announced October 6, 2014 by Hewlett-Packard (HPQ) to split the company in two, largely to jettison the lower-margin Printer and Personal Computer ((PC)) units from the higher-margin services business. I am here to argue it is a bad idea. This is coming from someone who has owned shares off and on over the last several years, when Wall Street wrote HPQ off as dead money. The fully integrated model, including the Printer and PC divisions, is a major selling point for businesses and consumers like myself. You can review my bullish HP article on Seeking Alpha from October 2013 … Read More …