Tech Trading Close to 52-week Lows: HP, Activision, and RIM
Despite yesterday's huge rally, once quality tech stocks like Hewlett-Packard Company (NYSE:HPQ), Research In Motion Limited (NASDAQ:RIMM), and Activision Blizzard, Inc. (NASDAQ:ATVI) are still trading near 52-week lows, so are these stocks bargains or just dangerous?
HOW LOW CAN YOU GO?
Hewlett-Packard Co's (HPQ) shares are trading at $39.39 today up 0.46% or 18 cents and its shares are just 5.26% away from its 52-week low. Over the past 12 months Hewlett-Packard Co (HPQ) shares have traded
between $37.32 and its 52-week high of $54.75. Hewlett-Packard Co
shares are now trading with a P/E Ratio of 10.7 and EPS of 3.58. JMP Securities upgraded Hewlett-Packard today from “Market Perform” to “Outperform.” JMP also set a $50 price target on H-P shares, even despite the company running without a permanent CEO.
Research In Motion Ltd 's (RIMM) shares are trading at $44.43, up less than 1% and its stock is just 4.28% away from its 52-week low. RIM's shares have traded between $42.53 and $88.08 over the past 12 months. Research In Motionshares are now trading with a P/E Ratio of 9.4 and EPS of 4.58. This stock has been a falling knife ever since the dismal Blackberry Torch release and Blackberry Ban threats by every other country.
Then there's Activision Blizzard Inc (ATVI), its shares are 8.65% from its 52-week low trading today at $10.84. Over the past 12 months Activision Blizzard (ATVI) shares have traded between $9.93 and its 52-week high of $12.96. Activision Blizzard shares are now trading with a P/E Ratio of 41.3 and EPS of 0.26. Last month was brutal for ATVI shareholders after the company reported revenue fell 6.8% to $967 million from $1.04 billion during Q2 2010. Higher revenue from its subscription and licensing segment was offset by a decrease in product sales.
Its tough to go to bat for these stocks right now because of all the negative press, to delcare Activision the safest of the three may be rash due to the volatility of the media and economic factors. Hewlett-Packard Company (HPQ), Research In Motion Limited (RIMM), and Activision Blizzard (ATVI) may have bottomed for the moment, and if you can stomach the swings, now may be the time to "buy low".
Happy safe investing, we recommend you add HPQ, ATVI, RIMM to your watch list as these stocks are trading at attractive valuations, its just depends on if they can sell that story to Wall Street.