6/14/2005

HP moves forward - (finally)

Filed under: — menk @ 5:09 pm

Years too late, but perhaps better than never; HP has now decided to create more separation between the personal systems (PC) business unit and the printer/imaging business. Part of Carly’s grand and failed strategy was based on combining the units to leverage them to the company’s benefit. (Stupid Plan and bad result)

After hemorraging stockholder equity buying Compaq, HP doggedly continued under Carly’s direction to cook the books and hide the bad business conditions at the company. (Fortune Article on the undercover finances) Finally this year the HP board got a clue and showed Carly the door now HP appears to be headed in the right direction. Unfortunately for HP stockholders it’s too late to get back the cash we lost to the stockholders of Compaq who got the sweet deal (equity interest in the few money making areas of HP in exchange for equity in a failing business) while HP stockholders got the ‘shaft’.

To take this to it’s logical and appropriate conclusion HP should spin off the imaging and printer business and focus on it’s strengths. Along the way dumping the PC business if it can’t carry it’s own weight would also be a good idea.

Perhaps if HP’s current CEO (Mark Hurd) can survive the current SEC investigation of his sales of NCR stock just prior to joining HP, he can move this company forward rather than in the rearward direction favored by Ms. Fiorina.

Powered by WordPress