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!

5 Stocks With New CEOs to Stay Away From

Hewlett-Packard

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

For close to two decades, Hewlett-Packard (HPQ) had the perfect business model of combining desktop computing with desktop printing. It was a "hand in glove" strategy that helped propel the company to superiority over competitors such as Dell (DELL), Lexmark (LXK) and Gateway.

The company was headed up for many years, from July 1999 to February 2005, by Carly Fiorina, who helped to navigate Hewlett Packard out of the tech bubble crash until her eventual departure. The next permanent CEO to run Hewlett Packard was Mark Hurd who, during his August 2005-to-August 2010 tenure, took the company to post-bubble heights despite the U.S. credit crisis and resultant market crash and recession. Hurd resigned from Hewlett-Packard not due to his failure to successfully operate the company but rather as a result of sexual misconduct charges.

>>3 Tech Stocks to Buy on a Pullback

Unfortunately for Hewlett Packard, that was the beginning of the end for the company and its stock. Hurd was replaced with a software expert, Leo Apotheker, who made several strategic mistakes in a short period of time, including the purchase of Palm and then flip-flopping on its mobile device strategy. Apotheker was recently replaced by Meg Whitman, the former CEO of eBay (EBAY), which she took from startup status and built into an Internet retail powerhouse.

Now Whitman is expected to do for Hewlett-Packard what she did for eBay -- but I believe that is a far reach. Hewlett-Packard has structural problems, including the decline in paper publishing and an increase in screen-based publishing from e-readers and Adobe (ADBE) software. Furthermore, the company finds itself losing competitively to Apple (AAPL) both in the desktop and mobile space.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,858.52 -53.59 -0.32%
S&P 500 1,964.93 -5.02 -0.25%
NASDAQ 4,451.2160 +8.5180 0.19%

Brokerage Partners

Rates from Bankrate.com

  • 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