Ask Matt: Can HP turn itself around?

• Hewlett-Packard continues to struggle amid big changes in the technology industry
• Weak guidance for earnings in the current quarter and an $8.8 billion writedown are stumbling blocks
• Long-term investors might be rewarded if they wait years, but few investors will have patience

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Can Hewlett-Packard turn itself around for investors?

A: Hewlett-Packard's old slogan used to be "Invent." Now, for investors, it seems more like "Descent."

Following a revolving door of new CEOs, the computer and technology services company has been trying to regain its footing. It's attempting a difficult turnaround as it gets much of its revenue from slow-growing and low-profit businesses. And it took another step back this week, after announcing an $8.8 billion writedown in the value of a company it bought last year.

Revenue fell by 5.3% in fiscal 2012, and the company posted a loss of $12.7 billion. Weak demand for the company's key products, computers and printers, continues to be a drag that's hard to overcome. Meanwhile, under previous leadership, the company didn't invest in its services unit, which is making it difficult to be competitive.

Meg Whitman, the company's current CEO, has warned that a turnaround will be slow. The company must reinvent itself in a world where more corporate data is being accessed on mobile devices. If the company can make the transition, it could be lucrative, but the shift will take much longer than many investors have the patience for. Of the 25 analysts that cover the stock, 23 rate it a "hold," "underperform," or sell.

Yet, investors with a longer-term investment horizon, might take a wager on the stock. Shares of the company are trading below the present value of present cash flows; in other words, it's a cheap stock, says market research firm NewConstructs.com.