HPQ Stock Price Prediction: Why We Should Buy More Shares of HP Inc.

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • Activist investor Carl Icahn bought a $1.19 billion stake in HP Inc. He also owns 10.6% stake in Xerox. Icahn is now orchestrating a Xerox takeover attempt of HPQ.
  • It might be profitable to buy HPQ on a bet that Xerox will increase its $22 cash + stock initial bid for each HPQ share.
  • Majority of HPQ stakeholders might agree to a deal if Xerox will increase its bid to $26.
  • The other scenario is HP, Inc. will instead offer an all-stock bid to acquire Xerox. HP Inc. has tried before before to buy Xerox.
  • Whatever happens, HP Inc. does not really need Xerox. It already owns the laser printer/copier business of Samsung.

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