Wall Street's Hurd Mentality: Today's Outrage

The valuation for Oracle's $6.7 billion man is tricky.
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NEW YORK (

TheStreet

) -- Employees apparently

loathed him

. The company he worked at for five years

abruptly ushered him

out and now wants to

block him from his plum new job

. He even had to

pay a female contractor to dine with him

.

But oh boy does Wall Street love Mark V. Hurd.

Mark Hurd

How much, you ask? About $6.74 billion in unconditional investor love.

On Tuesday, when rival

Oracle

(ORCL) - Get Report

and tennis buddy Larry Ellison said Hurd was joining the company, Oracle shares jumped 6%, boosting Oracle's value by $6.74 billion.

Pretty rich right?

Well, just month earlier he was worth $8.5 million to

Hewlett-Packard

(HPQ) - Get Report

, proving that unlike a fine Malbec, Hurd's value doesn't have a great shelf life. Investors sold HP stock when Hurd unexpectedly left HP for violating the company's trust and ethical standards.

Hewlett-Packard's board decided it needed to distance itself from Hurd's ethical malfeasance, and on Friday, August 6 they pitched him out. By the end of regular trading Monday, HP had fallen 8%, making Hurd's immediate departure from HP worth an eye-bulging $8.5 billion in market value lost.

Happy to see him go but not happy that he's going to a rival, HP claimed that Hurd will violate his trade secrets agreement. HP filed a lawsuit to block Hurd's move to a $11 million job at Oracle Tuesday.

Oracle's Ellison

quickly fired back, saying HP will lose a valuable business partner if the company sticks with its lawsuit.

Hurd appeals to investors with his hunger to add revenue through acquisitions and slash costs through firings. It's

a blunt approach

that runs counter to Silicon Valley's tech innovation culture, but in the five years he was at HP, the stock outperformed PC sector peers like

Dell

(DELL) - Get Report

,

Microsoft

(MSFT) - Get Report

and

Intel

(INTC) - Get Report

.

For now, Hurd has at least one friend and the stock market on his side. But the street isn't known for its loyalty. Any hitch to his move to Oracle could quickly erase that $6.74 billion in unconditional love.

--Written by Scott Moritz in New York.

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