H-P Extends Customer Service Deal (AAPL) (CSCO) (EBAY) (HPQ)

Zacks

Hewlett-Packard Co. (HPQ) has reportedly extended a customer service agreement with mortgage solutions provider Loan Value Group LLC (“LVG”) for five years. Financial details of the deal were not divulged.

Founded in 2008, LVG positively influences residential mortgage owners in paying out the interest as well as the principal amount. The company has recently launched an incentive program named Responsible Homeowner (RH) Reward, which keeps the borrower well informed about the risk of being a defaulter.

The basic premise of the Program is to provide a homeowner with a cash reward for making timely mortgage payments every month, over a period of time established by the homeowner’s mortgage company.

Per the contract terms, H-P will provide complete contact center and customer support functions to popularize LVG’s RH Reward solution. A contact center is a facility used by companies to manage all client contacts through media such as telephone, fax, letter, e-mail and now, online live chat. Through H-P’s support, LVG will be able to serve better mortgage providers, insurers and investors.

Last week, the Australian government selected H-P to provide technology service agreement for its next-generation digital hospital in Adelaide. According to the agreement, Hewlett-Packard will design, build and maintain a portion of the information, communication and technology systems of the digital hospital. Financial details of the deal were not disclosed.

Though we are unaware of the financial impact of these deals, we find H-P’s series of services deal wins quite encouraging.

Despite, H-P’s positive deal momentum, market position and compelling product line, we remain cautious about its future growth, particularly as competition from other big technology players, such as Cisco Systems Inc. (CSCO), Apple Inc. (AAPL), Acer and Dell heats up. Moreover, the recent volatility that has pumped up over Leo’s dismissal, the appointment of Meg Whitman, the former EBay Inc. (EBAY) chief and the decision to spin off the PC business is raising investor confusion over the stock.

H-P now has a short-term Strong Sell recommendation (Zacks #5 Rank).

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