Is Hewlett Packard A Buy?

After the bell Hewlett Packard announced its earnings number for the previous quarter. They were worse than  expected and the stock is down after hours. Now Hewlett Packard has been doing ok the past couple months and has been creating some investor stir. Jim Cramer from CNBC's Mad Money came on television earlier this year and announced Hewlett Packard as one of his favorite stocks for 2009. If you are blindly buying HPQ cause of his recommendation, I want to give you a few words of caution.

Mark Hurd, who has been a great CEO since he was given the position, said that he expects the poor economy to impact Hewlett Packard's business in 2009. HPQ cut its earnings estimates for the next quarter and for the rest of the 2009. Hurd warned that the upcoming quarter was going to be especially difficult for HPQ. During a tough economy, investments should be made on management that feels they can steer the company and adjust its business in order to grow. Hurd does not see that happening this quarter and probably not this year.

I am recommending that investors stay away from Hewlett Packard at least for now. If you want to invest in HPQ, don't do so until the 2nd half of 2009.  Hewlett Packard isn't going anywhere this quarter. You can revisit the idea of investing in HPQ if the economy suddenly picks up later on this year, but don't invest it in now.