HP's Big Day

the release of its third quarter sales and earnings

We like HPQ shares on two fronts: a) a more stream-lined and aggressive IPG should generate positive share momentum versus competition while positioning itself to benefit longer term from technology/IP and attractive usage model dynamics; IPG in our view is worth $20+/share; b) restructuring and improved focus on operation execution should contribute to improved profits from HP&'s computer-related (ESS, PSG and Services) businesses.

If that take is correct, HP would be in a position between now and the end of the year to turn the screws to rival Dell's printing business.

John Mugarian isn't expecting too much too soon:

We all know that HP is a turnaround story, but the fortunes of a company do not turn on a dime. PC makers are dropping prices to gain market share, and this cannot be good news for revenues or margins... The momentum crowd has bought into the hype over new CEO Mark Hurd. Hurd will fix the company in time, but the key word here is TIME.

Even if HP shows the beginnings of a good turnaround under CEO Mark Hurd, it shouldn't get too cocky with stories like this from B.L. Ochman.

MORE: Craig Zarley has the story on HP's earnings here.