Capellas' Departure Just Another Brick in H-P's Wall

Others say the resignation creates flight risk among leading managers on the Compaq side. "Capellas had a loyal following within the community of former Compaq managers and staff, and his resignation increases the risk that some of these people may depart too," warns Prudential analyst Kimberly Alexy in a note.

In a comment echoed by some other analysts, she zeroes in on the news that Capellas' position won't be filled, calling it "somewhat negative." "A focused day-to-day operations executive augments CEO Carly Fiorina's stewardship of this $70 billion company," she writes.

Certainly, Capellas' departure leaves the burden of integration entirely on Fiorina's shoulders. She "must turn investor perception her way after a rough start," writes Merrill Lynch technology strategist Steve Milunovich in a note.

"I think Fiorina's a bit over her head personally," says McEntire, ticking off a few of the reasons he doesn't own the stock in his fund. "It's a difficult time to have such a big commitment to the PC market, which has been a victim of tremendous cost declines. PCs are heading more towards being a commodity product."

Related to that worry is a report in Barron's last weekend that Wal-Mart, the world's biggest retailer, is preparing to launch its own line of personal computers. The story quoted an analyst who said the company was 12 to 18 months away from contracting its own PC out of Asia, although a company spokeswoman said the retailer had no such plans. H-P is currently Wal-Mart's largest PC supplier.

But the most pressing strategic threat of all, agree McEntire and other investors, is Dell's recently announced deal with Lexmark to start selling printers, which is bound to strike at the heart of H-P's profit center.