This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

For H-P Hot Seat, Investors Want an Innovator

Stocks in this article: HPQ AAPL IBM CSCO

PALO ALTO, Calif. ( TheStreet) -- Following Mark Hurd's stunning departure from Hewlett-Packard (HPQ) on Friday, who will be next to lead Silicon Valley's most fabled garage venture?

As a list of familiar Valley executives circulates inside Wall Street's crystal ball, one thing is for sure: Analysts and investors want someone who can convince them of an H-P growth story, one of the few things Hurd, who dazzled Wall Street with intense efficiency-promoting measures, was never able to do.

>>Video: Hold Nose, Buy Hewlett-Packard

"We believe Mark Hurd was a great cost cutter and we are disappointed that he is gone, but he was having difficulty with investors in handing off the H-P story to one of growth ... " wrote Barclays Capital analyst Ben Reitzes in a note Monday.


Indeed, while the list of strategic acquisitions blossomed under Hurd -- Mercury Interactive, Electronic Data Systems and Palm, to name a few -- analysts feel that few of them showed enough growth once situated under the H-P umbrella.

"H-P has become the Wal-Mart of IT," said a former Mercury/H-P vice president who asked not to be named. "They don't cater to a strategic IT agenda -- they're more about low costs."

To that end, tech watchers see H-P's current situation as a great thing; an opportunity to make inroads necessary to better position the behemoth in exciting, growing markets -- if its board hires the right person.

"What they really need is someone who can bring the sizzle back into H-P, who can market new products," said David Harap, managing director in the Austin, Texas office of Stanton Chase International, an executive recruiting firm. "H-P is going to be looking for a visionary, someone who can create buzz to help challenge Apple (AAPL)."

The company and its board have been extremely tight-lipped about the search, which is being conducted by a four-person committee led by board member and renowned Internet investor/Net-scapee Marc Andreessen. "We don't have a lot to say," said Andreessen on Friday's investor call when asked about what character and business-leading traits they were seeking. "We want to make sure we get the right CEO; we're looking at both internal and external candidates."

Likewise, an H-P spokesperson declined to comment on the committee's progress on Monday.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs