Publish date:

'Fast Money' Recap: HP's Surprise Pick

The trading panel discussed the choice of HP's new CEO.
Author:

NEW YORK (

TheStreet

) -- The markets ended the quarter on a down note.

The

Dow Jones Industrial Average

fell 47.23, or 0.44%, to 10,788.05. The S&P 500 lost 3.71, or 0.32%, to 1,141.02, while the

Nasdaq

slipped 7.94, or 0.33%, to 2,368.62.

Hewlett-Packard

(HPQ) - Get Report

was down 4.4% in afterhours trading after it announced Leo Apotheker as its new CEO and president.

Karen Finerman said on

CNBC

's "Fast Money" show that the choice was underwhelming. She said the hope had been for a CEO with "rock star" status, adding it's going to be "tough to get everyone aboard."

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw onTV

varconfig = new Array(); config<BRACKET>"videoId"</BRACKET> = 621205129001;config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player";config<BRACKET>"autoStart"</BRACKET> = false;config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF";config<BRACKET>"useOverlayMenu"</BRACKET> = "false";config<BRACKET>"width"</BRACKET> = 265;config<BRACKET>"height"</BRACKET> = 255;config<BRACKET>"playerId"</BRACKET> = 1243645856;createExperience(config, 8);

Still, she said she sees "compelling value" in HP and would give Apotheker the benefit of the doubt.

Guy Adami said Apotheker, who formerly worked for

SAP

(SAP) - Get Report

, will have big shoes to fill after the departure of Mark Hurd.

Anthony Scaramucci said he was surprised by the pick. He said the company should have made a broad-based search, adding the transition could take awhile.

Brian Marshall, an analyst with Gleacher & Co., had mixed feelings about the choice. He said it's good to bring in someone from the outside with an expertise in software.

Marshall said HP did look at some high-profile names at

IBM

(IBM) - Get Report

and

Apple

(AAPL) - Get Report

.

Marshall said the new CEO will have to solidify its software tie-in with its existing customers. He said Apotheker has no track record of dealing with integration issues and revenue growth.

Gary Kaminsky criticized the way HP handled the selection process, calling it sloppy. He said the board should have paid more heed to developing a succession plan.

Cortes said he was looking to buy HP shares. He said the Hurd premium has been exaggerated. He said Hurd is "no Steve Jobs" and that HP has a "good bench and strong players."

CNBC

reporter Jon Fortt said sources in Silicon Valley described the pick as "nutty" and board as "dysfunctional." He said the sources said Apotheker doesn't know hardware, acquisitions and change management.

He said it will take a "special person" to run a highly complex company. He said Apotheke is very good in software but is "not known as an operational person."

Lee shifted to another big story: the report that

Gymboree

(GYMB)

is exploring the sale of the company. Finerman liked the company, saying it has good cash flow and a great balance sheet. She also said she wouldn't be surprised if

Children's Place

(PLCE) - Get Report

could be a buyout target.

Returning to a discussion of today's market, Lee noted some key reversals. Adami said things might be in place for a selloff. Scaramucci said it bodes well for the market that the

Federal Reserve

is behind stocks and valuation.

Adami said

Netflix

TheStreet Recommends

(NFLX) - Get Report

was down 5%, getting squeezed by shorts. He said the valuation of the stock hasn't made much sense in the last $50 rise. Scaramucci was more emphatic, calling it a "very dangerous" stock for retail investors, with a 100 P/E multiple range and overpriced for perfection.

Commenting on the gold rally, Kelly said it's a perfect environment for gold bugs with record deficit spending, marco-economic uncertainty.

The financial names continued to be a sore point. Finerman attributed the problem to low trading volumes, thin margins and high overhead. Kelly said the financials have a chance to come back if the market breaks through 1,175 on the S&P.

Steve Cortes said he was very short on the financials and attributed the banks' problems to insufficient loan demand.

Commenting on the reports of

Citigroup

(C) - Get Report

and

AIG

(AIG) - Get Report

payback of TARP money, Barry Ritholtz, CEO of Fusion IQ, found the reports of the AIG difficult to believe for a company that he company that is insolvent and shrinking as it sells off its crown jewels.

Lee brought in Peter Boockvar, of Miller Tabak, said the problem with the economy won't improve until it shifts away from a reliance on unstable asset prices rather than on savings, which he said is the "true fuel" that drive investments.

In a segment on the tablet trade, Pablo Perez-Fernandez, an analyst with MKM Partners, said he liked what he has seen of

Research In Motion's

(RIMM)

PlayBook before he was cut off by a bad phone connection.

He told the panel that BlackBerry users are loyal and found the PlayBook's features "compelling," taking approaches that haven't been tried by its competitors.

Lee shifted the discussion to

BP

(BP) - Get Report

, which endured a summer of pain before bouncing back. Whitney Tilson, of hedge fund T2 Partners, said the stock could rise above $50 if it reinstates its dividend. "That would be a major catalyst."

Finerman was impressed with BP's resilience, especially its ability to do a bond deal. Kelly, though, said he would invest in other stocks like

Transocean

(RIG) - Get Report

rather than BP, which he said still faces the uncertainty from lawsuits.

In the final trades, Cortes recommended buying the U.S. dollar. Scaramucci liked

Johnson & Johnson

(JNJ) - Get Report

. Adami reiterated his preference for

Baker Hughes

(BHI)

. Finerman said those who own Gymboree should "lay some off." And Kelly said he still liked the trade in

Andersons

(ANDE) - Get Report

.

--Written by David Tong in San Francisco.

To contact the writer of this article, click here:

David Tong.

To follow the writer on Twitter, go to

http://twitter.com/davidtong.

To submit a news tip, send an email to:

tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page onCNBC

.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.