This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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!

Renee James: The Key to Intel's Succession

Stocks in this article: INTC DELL HPQ FSLR AAPL QCOM ARMH

NEW YORK ( TheStreet) -- Intel (INTC) is going to some pains to make it appear the appointment of Brian Krzanich as CEO is an orderly succession.

It's not.

While Krzanich is being given the keys to the car, he's not sitting in the front seat all alone. There's a President next to him. The two share an "office of the President" giving this President extraordinary power.

Those who have commented on this note that said President Renee James is a female person.

That's not the story.

The story is that Renee James is a software person. She's not even an engineer. She's a business major from the University of Oregon. Making such a person CEO might cause engineers to storm the castle. Making her President is just an evolution. An Intel lifer, old "BK," is still in charge.

Still, putting a software person on top of Intel is a bit like making an engineer CEO of Avon (AVP), or hiring a journalist to run, well, anything. It's unusual. There has to be a story here.


In the case of Renee James, the story is that she has been running the company's software units -- including the embedded software outfit Wind River -- and that she ran a group that tried to build Intel-run data centers a decade before the cloud was a thing.

If the latter plan were to be resurrected, it would put Intel into direct competition with OEMs including Dell (DELL) and Hewlett-Packard (HPQ), which are staking their futures on managing hybrid clouds. Or it could make Intel more like First Solar (FSLR), which has regained its footing by building, managing and selling-on large solar energy plants to utility companies.

In addition to all this, of course, James was also once a personal assistant to legendary CEO Andy Grove, making him appear a more knowledgeable user of technology than he actually was. The early Intel CEOs were like TV engineers who never watched "I Love Lucy," the most innovative show of its day.

It does makes me wonder -- did she get Grove into that gold, cleanroom jumpsuit I saw him dance in during the 1997 E3 show in Atlanta? It would prove she can convince anyone of anything, and that's what Intel needs right now.

1 of 2

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!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.55 +7.90 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

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