Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of printer and imaging specialist Lexmark
So what: Collectively, Hewlett-Packard
Now what: Investors are obviously seeing this as a positive move by Lexmark, and I'm not about to second-guess that view. Of course, it's important to remember that this is the announcement of a plan -- the company still needs to execute the restructuring properly if investors are really going to see that near-$100 million annual savings in the income statement. Further, while cost-cutting can be a near-term solution for improving profitability, investors who are long-term owners of Lexmark will want to keep an eye on what the company is doing to reinvigorate growth and improve the top line as well.
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