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 ...
government builds them a shrine and offers a book deal...
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.
It’s selling at a good entry point if anybody wants to make some money.
“...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.
Not guilty! Thanks for posting.
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.
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.
I think the “not guilty” comment here is in the fine FR tradition of commenting on the picture itself.
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