H-P Investors Await Hurd Mentality

That's not an understatement. H-P is under assault from hyper-efficient Dell(DELL) and momentum-riding IBM(IBM). By comparison, H-P's stock is flat not only from this time three years ago, but from this time eight years ago.

However, to see the very definition of understatement is to look at Hurd's opening remarks from his Wednesday press conference: "I can see that this company is fundamentally sound, that the balance sheet is strong, that it generates substantial cash, and that it's a leader in a great many product categories and services. It's also clear that this company is not performing to its potential."

Hurd did note that he favors return on invested capital and gross margins as key indicators. That's a good thing because H-P's margins have been under assault of late. They've even become an issue in its key printer and imaging segment -- the unit that generated 70% of H-P's profit last year.

However, it seems likely that Hurd will make most of his early noise inside the company and not through the media. While the company's May 17 earnings call might mark the first public indications of Hurd's plans, it's even more likely he'll unveil his intended direction at an analyst meeting on June 15 in New York City.

At that point, Hurd will have had nearly a quarter of H-P service -- a decent amount of time for investors to expect direct answers to questions regarding spinoffs, layoffs and the ultimate road to higher profit.

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