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  1. ggendel's Avatar
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    Sometimes things are anti-intuitive. My RCA division was bought by Harris. They destroyed a thriving enterprise so bad that they decided to close our doors 8 months later (we went from a new design a day to no new designs in 4 months overnight). Harris stock soared with the announcement. Why? We had lots of product shipping through the pipeline, so when they closed our doors, they had no engineering, no product development, etc.; basically there was product coming out the chute with no significant overhead. They rode that gravy train for years and recouped an order of magnitude more than they paid.
    Palm III->Palm IV->Palm V->M130->Tungsten->Treo 270->Treo 600->Treo 700->Palm Pre Plus->FrankenPre 2->Pre 3 & TouchPad
  2. #22  
    Quote Originally Posted by JJCook View Post
    That is short term. What Leo is talking about is a major reorg. That can give 6 months to a year to see his plans through. If / when his long term plan is known, the stock will turn around. It took IBM a year or more to spin off the PC business to Lenovo. Today's stock performance is merely reaction to the annoumcement.
    What gets me though is that Leo is willing to follow this new course, knowing that it will take time to achieve his goals, but he wasn't willing to take the time for the Pre3 and Touchpads to get established??

    Both take time, he's simply picked the "easier" path in his mind.
    Last edited by semprini; 08/19/2011 at 05:08 PM. Reason: edit
  3. #23  
    the HP board would have approved his "new strategy" before it was announced.
  4. Useraid's Avatar
    44 Posts
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    No way he will get canned, they probably had this planned from before his hire, it was probably the reason he was hired in the first place. If anything they're cheering for him.
  5. #25  
    Quote Originally Posted by Psychonaut View Post
    Too bad the "axe" for people in his echelon just means ginormous severance package, "He's decided to look for other opportunities" and a lofty position somewhere else...
    hell of a reputation to drag along with you tho.
  6. #26  
    The way this works is the BOD will look at the stock price, and if it continues to decline, they WILL take immediate action, or else they will lose thier board seats.

    I believe it was both parties.. it doesnt matter who directed whom, but, they are both to blame, however, the BOD will do whatever it takes to keep their seats, and that includes firing the President and CEO, even if he did thier bidding.

    He'll just get a nice severence package.

    The only way to undo this damage is to fire him, prmote Todd Bradley immediately to CEO, and issue a statement that they will refocus their business plan to maximize their already substantial investment in WebOS devices and the PC division, which they are genetically bred to do, and they are doing it with the man who knows that division best.

    That would stop the stock slide, IMO, but, they would have to perform very quickly after that for any increased market capitalization, as they have lost all credibility with the Street, now, and only actions will reward them positively.

    IMHO, of course.
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  7. #27  
    Looks that way.

    From Bloomberg today:

    'Hewlett-Packard Co. (HPQ) fell the most in more than 23 years after issuing forecasts that missed analysts’ estimates and unveiling a set of strategic shifts that undermined confidence in the company’s management. '

    Hardly surprising.
  8. #28  
    A possible correction for this might be to
    fire the CEO.

    Not that the fault for the need to pull
    apart the HP PSG business was his, but
    there needed to be a better strategy and
    focus than a rash decision and summary

    Firing the CEO would show the board's
    (HP 's) disapproval of the CEO's approach.
    I can't imagine why they might let him
    continue executing on the company's
    behalf if his first step to execute a plan to
    increase shareholder value leads to a
    huge dip in stock value.

    At least, his method of announcing the
    discontinuation of webOS devices in the
    wake of new global product releases
    showed a lack of regard for their
    customers, retailers, shareholders and employees and a loss of credibility which I wouldn't expect any company should tolerate.
  9. #29  
    Long term, i agree with his vision that HP needs to become more enterprise focused.
    Short term, the execution on webOS and its devices was very poor.
    Remember HP purchased Palm before he came onboard, that may explain why he so hastily dumped it since he could easily put the blame on others.
  10. #30  
    The change of direction would have been approved by the whole board, and the lack of investor confidence sends a clear message. I don't think Bill and Dave would have been impressed either. This mess could have been avoided while still exploring more profitable revenue streams.
  11. #31  
    I think it would be nice of him to take a $1 salary till his strategy produces results.
  12. #32  
    Quote Originally Posted by rickwestland View Post
    Long term, i agree with his vision that HP needs to become more enterprise focused.
    Short term, the execution on webOS and its devices was very poor.
    Remember HP purchased Palm before he came onboard, that may explain why he so hastily dumped it since he could easily put the blame on others.
    Same here, in long term it does have sense, but long term transitions aren't announced or managed this way. Way BOD and CEO handled this is like cold blooded execution of whole PC unit, an unit which performed well in light of market reality - small margins. If I am stock holder I would be mad because BOD and CEO just killed my number one position in PC business without obvious reason.
  13. #33  
    HP will not be losing money off of this...remember this gives HP the opportunity to get rid of thousands of well paid employees...That was probably their goal to begin with...
  14. #35  
    Quote Originally Posted by Fatila View Post
    No way he will get canned, they probably had this planned from before his hire, it was probably the reason he was hired in the first place. If anything they're cheering for him.
    The stock is down around 40+% since he became CEO. I wouldn't be cheering for someone who did that to my investments.
  15. #36  
    Quote Originally Posted by blinktreo View Post
    HP's stock price has been hovering around -25% most of the day. Investors are not happy. They've been downgraded, and Market Analysts think the company is insane.

    CEOs have been canned for less than this.
    This is what I have been saying for a while on various other web sites. HP investors are not happy that they invested in a company that can give up one of the most profitable PC businesses in the world. That it can give up on it's vision on WebOS so easily, especially when the fault is HP's on why it has not sold. It does not help that none of the other leaders in the company -- DeWitt, Bradley and the main PC guy all were in the dark and had to issue comments basically back tracking or simi confirming what was said. I honestly think he spoke out of turn. That he new licensing deals were in the works -- which, by the way, might fall apart due to Leo in showing how HP is uncommitted to the platform and doesn't care about public opinion -- and wanted to announce it prematurely. He all ready lost WebOS 500 developers -- and counting -- to Windows Phone 7 (that I can praise him for, I have a WP7). He really has helped others, and screwed themselves.

    I hope Leo gets fired. That Bradely gets promoted to CEO of HP and that HP ends up selling WebOS to whoever they are in talks with. At this point, the best thing HP has done is the fire sale because whoever gets WebOS will have new userbase eager for apps and new devices. If WebOS is sold it MIGHT save it. If they rebrand it's image -- most people still don't knoe what WebOS is -- and start with good hardware and have features like voice to text that people want -- then that company can make a lot of money and keep afloat. And possible beat WP7 as 3rd or 4th place in the smartphone business.

    Quote Originally Posted by ToniCipriani View Post
    Even if they rewind, the damage is already done. HP just showed themselves to be incompetent as a whole, it's not just the CEO now.

    And as a side note, can we really expect much from a company that originally passed on the idea of making personal computers in the first place? Steve Jobs and Steve Wozniak first went to HP and they pretty much said you have a stupid idea. Then that very idea is now making them 9 billion dollars in one quarter. Way to go HP, you show just how terrible you really are.
  16. #37  
    Just curious what everyone thinks now, about Leo the Lyin Apotheker? He has two class action lawsuits staring at him from stockholders, stock that has yet to rebound from his stupidity, and then yesterday reportedly laid off the first hundred of 500+ employees slated to get the axe. In reviewing the business gurus, I've yet to find anyone who thinks that Leo made anything but a blunder here, both in the decision itself, and the handling of the decision.

    My heard goes out to those HP employees that are getting the axe. Its untimely that the announcement of the lay-offs followed the news that HP employees were going to get first dibs on the next group of Touchpads. So the guys and gals that made them are getting the axe, while the rest of the company gets an opportunity to enjoy them. Something is wrong with this picture. They should hand a free one to each laid off employee.

    Anybody want to bet how long Leo lasts? I say no more than six months. When I think of Leo I think of HP's announcement that they were "in this for the long haul...this was not a sprint but a marathon." I picture Leo running the marathon and giving up half way up the first hill, with the starting line directly behind him. ayiyi.
    All for One and One for All!
  17. #38  
    Well, the Leo's payment can save 525 employees... and; maybe, more...

    Best Regards...
    "If A Man Isn't Willing To Take Some Risk For His Opinions, Either His Opinions Are No Good Or He's No Good!" - Ezra Pound (Poet & Critic)
    (Happy A Lot, As A Good Carioca!)
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