Buffet buying into HP my observations why?
The stock god Buffett has entered the market again to sweep the goods. He bought 1.21 shares of HP.US for $4.2 billion. Last night, HP was also relatively strong, up 14%. What advantages does HP have to make the stock gods fancy?
1. The valuation is low enough, the current price-earnings ratio of HP is only 7.05PE, and the total market value is 41 billion;
2. As far as the current situation is concerned, working from home has become the norm, and the future growth of the printer business should be unprecedented;
3. The situation abroad is not clear, but domestic online classes are already very common, and class materials are frequently printed, which is clear to children who have online classes at home;
4. 63.7 billion in 2021, a year-on-year increase of 11.3%; net profit of 6.5 billion, a year-on-year increase of 130%. What else is there to say about this financial report?
$HP Inc(HPQ)$$Berkshire Hathaway(BRK.B)$
5. Repurchase plan: HP may repurchase shares with a total value of $16 billion before fiscal year 2022. HP’s total market value is currently only $41 billion, and the repurchase amount reaches 39.02% of the market value
I secretly think that the above points may be the reason why the stock gods are sweeping the goods. After all, they are not stock gods, and they are just speculations.
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Yup, probably fit into buffet criteria