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HP Tanks on Jim Chanos Critique, Instantly Rebounds

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Hewlett-Packard (NYSE: HPQ) declined sharply this afternoon after famed hedge fund manager Jim Chanos spoke at the Delivering Alpha conference in New York, referring to the stock as the ultimate value trap.

Chanos added that it reminded him of Kodak (EKDKQ), and that the business is going from PCs to tablets. He also thinks that Hewlett-Packard wasted money on acquisitions, and that computing will continue to move to the cloud. Inevitably, consumers will become "device agnostic," he said.

Shares of Hewlett-Packard dropped immediately after Chanos' statement, abolishing the two percent gain the stock had experienced this morning.

Hewlett-Packard has since rebounded, though the early gain tapered off.

Despite having one of the most successful printer businesses in the world, Hewlett-Packard has endured a number of problems over the past 18 months. The company admitted that its leading non-Windows competitor, Apple (NASDAQ: AAPL), would lead the market in 2012.

Now it appears that Lenovo will take Hewlett-Packard's place as the world's largest computer manufacturer.

Follow me @LouisBedigianBZ

 

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