Waiting Out the Shift in Strategies at Hewlett-Packard and Cisco Systems
By BubbleBustInvesting.com:Hewlett-Packard (HPQ) and Cisco Systems (CSCO) have many things in common. They are both innovative technology companies that rode the high-tech bubble of the 1990s (though HPQ has been around much longer than CSCO), delivering their stockholders hefty gains. They took a dive in the early 2000s, as the high-tech bubble burst, only to recover slightly by the late 2000. They both face stiff competition in the upper-end of their business—Hewlett-Packard from IBM and Apple Computer (AAPL), and Cisco Systems from Juniper Networks (JNPR)--and from each other; and even stiffer competition at the low-end of their business by Chinese manufacturers—Hewlett-Packard from Lenovo and Cisco from Huawei. And they both relied on mergers and acquisitions to expand product portfolios—though Cisco more than Hewlett-Packard.
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But now this strategy doesn
t seem to work well, as acquisitions became increasingly expensive and hard to integrate, and some of these acquisitions steeredComplete Story »