Hewlett-Packard's performance under Hurd was solid -- including taking the stock from $21 to $42 while also placing the company on a strategic path into areas such as networking and mobility. These visions were nonexistent prior to Hurd's arrival, nor have these businesses flourished since he left. As with the departure of bad boss Steve Carell on "The Office," Hurd's departure from HP shook Wall Street, which was understandable.
After trading as high as $47 in August 2010, HP's stock has plummeted to a 10-year low of $11.35. Although the stock has rebounded over the past several months to around $21, I still wonder where HP would have been today had he not left. Hurd was ousted when sexual harassment allegations surfaced regarding an outside contractor, Jodie Fisher. On the show, this was par for the course -- it was expected and nobody told. Even Toby, the HR personnel for Dunder Mifflin's Scranton branch, looked the other way.
Essentially, had HP handled this situation differently, who knows where the company would have been today? Maybe Autonomy would have happened and maybe it wouldn't. The fates of HP's biggest rivals today could have taken different paths. Apple (AAPL) still would have been Apple. But I don't think for a second that HP's competitive deficit would have been so significant as it is today.
Hurd's not coming back, regardless of what I think. Although Whitman seems to be keeping a good pulse at HP today, the company still faces major hurdles going forward. To her credit, it does appear that her restructuring moves are working. I just don't think it makes HP any more viable. PCs are not making a comeback and the company still has no meaningful mobile strategy.Making matters worse, while Hewlett-Packard is busy trying to stop its bleeding, Cisco (CSCO) and Oracle are making investments into new end-markets. This means regardless of the any progress seen in HP, the company will still be behind. The good news is that with cash flow jumping up 115% in the first quarter to $2.6 billion, HP does not look like a company ready to be cast off to the glue factory. But the lights in the office are dimming. At the time of publication the author had a position in AAPL. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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