http://www.profitabletradingtips.com/trading-investing/trade-hewlett-packard-as-it-downsizes Trade Hewlett Packard as It Downsizes As its computer sales and IT business fall off Hewlett Packard may be downsizing by as much as a twelfth of its workforce. To trade Hewlett Packard as it downsizes a trader needs to look closely to see if HP is likely to lose talent that it cannot get back when it makes this move. Hewlett Packard has been a leader in US high tech for years so this news comes as a surprise to many. However, long term investors who believe that the new management at Hewlett Packard will turn the company around are willing to invest in Hewlett Packard as it downsizes. These folks believe that HP has long term intrinsic value. For one who wishes to trade Hewlett Packard as it downsizes technical analysis of market sentiment may be more important. It is with the shorter term rise and fall of Hewlett Packard stock price that stock traders expect to make their profit. Hewlett Packard Hewlett Packard, HPQ, is a multinational provider of technology products and services to governments, large and small businesses, and individual consumers. The company’s core business is in printing, computing, data storage and networking hardware. It also provides IT services. Both of these parts of its core business have been hurt by the fact that many consumers have started using hand held tablets instead of personal computers. Many individual customers only used their computer to send and receive emails and find a tablet device efficient, portable, and often cheaper than a desktop or laptop computer. Hewlett Packard had not developed a presence in the arena of hand held devices in a story reminiscent of the rise of IBM as the world’s premier computer company and its demise at the advent of the personal computer. During its struggles of the last ten years Hewlett Packard acquired Compaq and EDS as well as 3PAR and Palm. The last was its belated effort to enter the hand held computing market. Anyone who wants to trade Hewlett Packard as it downsizes will want to consider the relative value of its various segments and just what downsizing will do for cost and profits. They will also wish to consider how the rest of the market will view these efforts. Making money in an effort to trade Hewlett Packard as it downsizes may have as much to do with timing stock trades as understanding fundamentals. What Will HP Do Next? The first half of the equation if you wish to trade Hewlett Packard as it downsizes is the fallout from massive layoffs. The second half will be just what HP does next. The company is a technology leader with lots and lots of talent. If new CEO Meg Whitman can channel this talent pool into more profitable areas the end result for Hewlett Packard could well be lower costs, higher profits, and a rising stock price.