Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 24, 2017

Article Excerpt

Dear client, HEWLETT-PACKARD ENTERPRISE CO., $22.77, New York symbol HPE, sells computing services and products, such as servers and analytics software, to businesses and governments. The company plans to complete the merger of its Enterprise Services business with Computer Sciences Corp. (New York symbol CSC) on April 3, 2017. Enterprise Services supplies 36% of HP Enterprise’s total revenue; it helps corporate clients manage their data centres and computer networks. Computer Sciences Corp, through its 66,000 employees in 60 countries, provides information technology and other services mostly to corporate clients. Under the terms of the deal, HP Enterprise will hand out its shares in the combined company, DXC Technology Co. (New York symbol DXC), to its shareholders. The company has yet to announce the exact terms of the transaction. However, HP Enterprise investors will own 50.1% of DXC. They will only be liable for capital-gains taxes when they sell their new shares. Following the spinoff, HP Enterprise will focus on its faster-growing server and software businesses. That…