Hewlett-Packard Company (HPQ): Dow Jones Industrial Average (.DJI) Spotlight Stock of the Week

What now?
The loss of an SVP during a turnaround is definitely a negative. He probably knows what H-P has planned for the future, and now that he’s going to work on behalf of a competitor, he could use that knowledge against HP in some fashion.

The downgrade is also a negative, but much less of one. It’s just one person’s opinion and should be viewed that way. In the short term, the downgrade has already affected the share price and may put further downward pressure on the stock in the coming weeks, but it will ultimately have only short-term effects. A downgrade in no way has any impact on the overall health of the business, and long-term-oriented investors need to remember that.

As for the board shakeup, it’s really a positive for all shareholders. Although investors themselves didn’t vote the men out, their voice was definitely heard, and it seems clear that the board may now be acting in shareholders’ best interests.

After reviewing the negatives and positives of the week, I believe they essentially balance themselves out. But that’s not to say the stock won’t still fluctuate dramatically over the next few days or weeks, or that I’d buy HP right now. The company still has a way to go to complete its turnaround, and I’d rather sit on the sidelines and let this one play itself out.

The article Dow Spotlight Stock of the Week: Hewlett-Packard originally appeared on Fool.com.

Fool contributor Matt Thalman has no position in any stocks mentioned. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513. The Motley Fool recommends Goldman Sachs.

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