H-P Investors Await Hurd Mentality

Shares of Hewlett-Packard(HPQ) trailed the market's rise Wednesday as investors balked at moving the stock substantially beyond Tuesday's gains, which were spurred by the naming of Mark Hurd as chief executive.

The lag suggests that a further rise will be based on measurable improvements at the technology stalwart, which is neither a small nor easy matter.

During Hurd's two press conferences Wednesday -- one for investors and one for media -- he said everything he was expected to say. He avoided questions about breaking up the company, he avoided saying layoffs were inevitable and he avoided offering his own definitions of H-P's biggest problem areas.

All in all, it was a pretty good day for someone who didn't arrive in Silicon Valley until Monday evening and doesn't even officially start work until Friday.

Hurd did say he has been researching everything he can find during the past couple of weeks about H-P, from analyst reports to public filings to media stories. While the substance of what he's uncovered remains unclear, his statements on Wednesday largely served to reinforce his image as an operations guru who wants to understand each business unit at H-P and deal with each on its merits.

Hurd doesn't carry as high a profile as Carly Fiorina and hasn't run a company as large as H-P, which analysts have taken to indicate that he'll work quickly and methodically to right the wrongs at H-P and that he'll be more beholden to the board.

"The H-P board is taking a very hands-on approach to the company now and they basically wanted someone who is skilled and talented, but also someone who will be answering to the board in a direct way," said Charles King, principal with Pund-IT Research. "I think that's good news for the company. H-P is now at a point where any misstep will be discerned as a big misstep. They need to do everything they can to keep the company on track."