Hewlett-Packard Company Gets Rid of Dead Weight

Hewlett-Packard offloads some unwanted intellectual property, putting its botched Palm acquisition in the rearview mirror once and for all. Meanwhile, Qualcomm gets to play a little bit of defense.

Jan 26, 2014 at 5:00AM

Wireless chip giant Qualcomm (NASDAQ:QCOM) has agreed to acquire various phone-related patents from Hewlett-Packard (NYSE:HPQ), including intellectual property from Palm, IPAQ, and Bitfone. A large part of Qualcomm business is intellectual property and licensing, mostly around cell phones, so acquiring these will help beef up its already strong patent portfolio. The real story here, however, may be more about HP than about Qualcomm.

In this segment of Tech Teardown, Erin Kennedy discusses this transaction and Hewlett-Packard with Evan Niu, CFA, our tech and telecom bureau chief. Evan tells investors of reports late last year that HP was trying to sell off these mobile patents, and that CEO Meg Whitman has been really trying to focus HP on its core strengths and get rid of distractions. Evan notes that several of these patents definitely constituted distractions rather than core businesses. While the transaction probably won't bring in a lot of money, estimating less than $100 million, every little bit helps with a company like HP that is in full turnaround mode, and trying to save money.

See more in the following video.

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Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA, owns shares of Qualcomm. The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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