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Hewlett-Packard shares tumble on ex-CEO Mark Hurd's shock exit over sex harassment probe
Vancouver Sun ^ | 08/08/2010 | Ritsuko Ando

Posted on 08/09/2010 4:07:54 PM PDT by SeekAndFind

Hewlett-Packard Co's stock looks like a bargain, analysts said, but uncertainty may limit its gains until the company finds a CEO to replace Mark Hurd, who quit over a scandal with a female contractor.

HP's share price, which had doubled since Hurd took the helm five years ago, fell eight per cent to close at $42.60 on Monday on the New York Stock Exchange (all figures in U.S. dollars unless otherwise noted).

The company said last Friday that an investigation found that Hurd had falsified expense reports to conceal a relationship with a female contractor, identified as 50-year-old actress Jodie Fisher. It is searching for a new CEO while Chief Financial Officer Cathie Lesjak runs the company in the interim.

"We own Hewlett-Packard, and we do not see this changing our thesis, and so, depending on the extent and duration of the sell-off, this might be a good opportunity to add to the company," said Henry Smith, chief investment officer at Haverford Trust Co in Philadelphia.

"We're certainly not contemplating selling it, but rather perhaps adding to it," he said.

Most analysts encouraged investors to buy the shares, citing the company's sales outlook and solid operations.

Standard & Poor's equity analyst Tom Smith lowered his share price target to $54 from $58 and changed his rating to "buy" from "strong buy," saying he was optimistic about the company's prospects and thinks the shares are a good bet.

(Excerpt) Read more at vancouversun.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: hewlettpackard; hp; markhurd

1 posted on 08/09/2010 4:07:55 PM PDT by SeekAndFind
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To: SeekAndFind
He resigned. That's what honorable people do.


2 posted on 08/09/2010 4:09:03 PM PDT by BenLurkin (Will must be the harder, courage the bolder, spirit must be the more, as our might lessens.)
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To: BenLurkin

Woman (a contractor) behind the sex harrasment probe.

Private companies purge people more quickly than government.
3 posted on 08/09/2010 4:11:40 PM PDT by SeekAndFind
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To: SeekAndFind

government builds them a shrine and offers a book deal...


4 posted on 08/09/2010 4:13:22 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: SeekAndFind

Hewlett-Packard shares tumble on ex-CEO Mark Hurd's shock exit over sex harassment probe

Another example of sensationalism in the press.

There was no sexual harassment. HP said so after finishing their review of the situation which was NOT an investigation into any sexual harassment.
The only place where those words appear is in the headline.

5 posted on 08/09/2010 4:24:20 PM PDT by Bloody Sam Roberts (A fearless person cannot be controlled.)
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To: SeekAndFind

It’s selling at a good entry point if anybody wants to make some money.


6 posted on 08/09/2010 4:30:17 PM PDT by BipolarBob (Even the earth is bipolar.)
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To: Bloody Sam Roberts
Perhaps you might want to arm yourself with the facts. There was indeed a probe of sexual harassment. The probe determined, publicly, that no such thing had occurred (not surprising since otherwise they would be admitting liability...). Hurd was fired for a pattern of lying:

“...Hurd’s decision was made following an investigation by outside legal counsel and the General Counsel's Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. The investigation determined there was no violation of HP’s sexual harassment policy, but did find violations of HP’s Standards of Business Conduct.”

He apparently lied on his expenses to cover up the close personal relationship.

7 posted on 08/09/2010 4:36:22 PM PDT by starlifter (Sapor Amo Pullus)
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To: SeekAndFind

Not guilty! Thanks for posting.


8 posted on 08/09/2010 4:54:37 PM PDT by Menehune56 ("Let them hate so long as they fear" (Oderint Dum Metuant), Lucius Accius, (170 BC - 86 BC))
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To: SeekAndFind

Whatever you can say about Hurd,he did turn the company around after years of mismanagement by Carly Fiorina. If a record of corporate profitability, rising revenues and share price, are the criteria for CEO effectiveness he was a very effective CEO. Too bad he was screwing around while he was turning the company around.


9 posted on 08/09/2010 5:24:47 PM PDT by chuckee
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To: Menehune56
Not guilty! Thanks for posting.

Then why did Hurd leave ?
10 posted on 08/09/2010 5:50:19 PM PDT by SeekAndFind
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To: chuckee
I knew there would finally be a he was great and helped solve Carly's mess post. Just a reminder HP was 10th or lower in computer sales when they bought Compaq, now they are near the top - the buyer of the horse is the genius not the trainer. All the rest of the stuff about lower share prices is because the Wall Street smart guys - the ones that ran Lehman, Bear Sterns and M. Lynch hated the buy out of Compaq so they killed the stock.

By the way this stuff about one girl and nothing happened is a PR bunch of crap. Nobody makes a genius go away over his expense account.

11 posted on 08/09/2010 7:39:55 PM PDT by q_an_a (a)
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To: SeekAndFind

I think the “not guilty” comment here is in the fine FR tradition of commenting on the picture itself.


12 posted on 08/09/2010 9:41:53 PM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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