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H-P (HPQ) "is a conglomerate in which all the cylinders have stopped firing at once," writes the...
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Sunday, November 25, 2012, 9:00 AM ETH-P (HPQ) "is a conglomerate in which all the cylinders have stopped firing at once," writes the FT. The company's PC division, IT services operation, and servers and hardware business are all struggling, while its lucrative printing division is facing decline. And that's not to mention the firings of three CEOs, a boardroom spying scandal, and multiple megabillion-dollar deals that have gone wrong, the latest of which is Autonomy.
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This news story has 15 comments:
Meg Whitman is just the latest example produced by this BOD whose background was running Ebay without distinction while it was growing rapidly while reaping lush bonuses. There is no sign she can succeed in a situation where reversals that she helped create are growing so alarmingly.
Next discussion will be about the break up value of each business unit.
HP is at its limits. The choice is a managed decline or a reinvention. Which way to bet?
http://seekingalpha.co...
Current PSR is around 0.2 vs a 10yr average in the 0.75 range and peaked at 1.28 in October 2007.
http://bit.ly/TXgRN0
If it ever reverts to trend this would be a really good time to enter on a long-term basis. If you are a holder now and bought in the higher range, well, I wish you good luck!
Good way to look at the HPQ decline.
It may be too late, but the Board needs to be fired. At least show the shareholders that there is something to hold on to. The smoke and mirrors charges by H-P about Autonomy blew up in their face. It was never about Automony. It was about deflecting the fact that the acquisition was another loser.
(This comment was typed and sent via and H-P laptop that was purchased on sale. Tis the season for a good sale, you know.)
HP used to be known for its innovation - yet by betting on PC's they moved ino an area where the innovation is outsourced to MSFT and Intel - there is none to little innovation in PC - unless it is through the logistics chain as Dell did for a while - otherwise it is just outsourced assembly and lowest common denominator pricing
HP went from spending a lot on R&D to very little as a % of sales -look it up.
HP's current troubles are rooted in the Compaq decision and the subsequent change in strategy - can they come back - doubtful but the road forwrd is to divest the PC business and rediscover their innvoation mojo
P
History will record that the decline of America, if not stopped by saner people, was caused by the financialization and MBAization of all walks of American life.
Luckily we saved ourselves and gave ourselves a bit more time by refusing to be taken over by an MBA LBO scam artist, a destroyer of pensions and American jobs.
Just the second inning.
Enjoy the game.
so, let the flood gates open.....