Possible chip shortage adds to their risk

Article Excerpt

On November 1, 2015, the old Hewlett-Packard Co. split into two firms—Hewlett-Packard Enterprise and HP Inc. For every share they held in the old HP, shareholders received one share in each of the new companies. Both firms continue to benefit from the split: HP is now up 59% since the separation, while HP Enterprise has gained 40%. However, shortages of new chips could hurt their sales and offset the positive impact of their latest acquisitions. HP INC. $34 is a hold. The company (New York symbol HPQ; Manufacturing & Industry sector; Shares o/s: 1.4 billion; Market cap: $47.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.3%; TSINetwork Rating: Average; www.hp.com) is now buying HyperX, the gaming hardware division of Kingston Technology Company. That business makes a variety of computer-gaming equipment, including keyboards, mice, headphones and microphones. The company will pay $425 million for HyperX when it completes the purchase by June 30, 2021. The purchase will help HP profit as the COVID-19 pandemic prompts more interest in computer…