Apple (AAPL) and Hewlett Packard (HPQ) have strikingly similar back stories. Both were born in the Bay Area, founded by two free-thinking inventors on a limited budget. The actual garage in which Hewlett and Packard started the company still exists along with a list of rules including ideas like "invent," "share," and "believe that together we can do anything."
Alas, HP no longer invents, Apple doesn't share, and the two companies are too different to do anything together. The stocks reflect the conventional wisdom with Apple the most valuable company in the world and HP a punching bag. The question is whether or not it's time to flip the script on either name.
At this week's "Delivering Alpha" conference, CNBC's Maria Bartiromo asked two legends in their own right, Leon Cooperman and famed short seller Jim Chanos whether it's time to take profits in Apple and cover shorts in HP. Though Cooperman is loath to start buying stocks that have ramped as much as Apple's, that's not a short thesis. Noting the monster balance sheet and low valuation he says it's realistic the company could grow 17% a year for the next 3 years.
Of HP, Chanos doesn't think it's a death spiral situation but it's getting close.