Diamonds and Dogs
11/20/12Hewlett-Packard Company (HPQ)
Hewlett-Packard (HP) is freezing up today, down 12.03% at $11.70. The computer company saw its shares crash today after it released news that it was a victim of a $5-billion-plus fraud. HP purchased the British company, Autonomy Corporation PLC, last year and is claiming that the company lied about its finances and used various accounting tricks to boost the company's figures. HP bought Autonomy Corporation for $9.7 billion in October of last year. The company is now taking an $8.8 billion charge to align the accounting value of Autonomy with its real value. According to HP, more than $5 billion of that charge is due to the false accounting. HP set a new 52-week low today.
Krispy Kreme Doughnuts Inc. (KKD)
Investors have a sweet tooth today, and Krispy Kreme Doughnuts is just what they are looking for. The doughnut company saw its shares jump 23.34% to $9.30 after a great earnings report. Net income and revenue for Krispy Kreme Doughnuts rose 6.9% and 8.5% to $5 million and $107.1 million, respectively. Adjusted earnings per share was announced at $0.12 per share, which was an astonishing three times analysts' estimates of $0.04 per share. CEO, James H. Morgan said, "Their [the Krispy Kreme family] efforts enabled us to deliver extraordinary results, including healthy revenue gains, robust same store sales, and substantial growth in both adjusted net income and operating cash flow." Krispy Kreme reached a new 52-week high, and is nearly at a 5 year high.