Parent & spinoff set their own course

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. The old HP expected the computer services business (HP Enterprise) would outperform its PC and printer operations (HP). However, since the split, HP Enterprise is up 59%, while HP has gained 78%. We still like both, but believe you should hold off on new buying for now. HEWLETT-PACKARD ENTERPRISE CO. $16 (New York symbol HPE; Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $24.0 billion; Divd. yield: 2.8%; Takeover Target Rating: Low; www.hpe.com) has spun off two parts of its operations since becoming a separate company. The first was on April 1, 2017, when it merged its enterprise service segment—it helps corporate clients manage data centres—with Computer Sciences Corporation. Together, they formed DXC Technology, New York symbol DXC. Shareholders received 0.086 of a share in the combined firm…

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