HP's latest exercise in futility

The company's board shake-up is akin to shuffling deck chairs on the Titanic. It's just not going to help.

By Jim Cramer Jan 21, 2011 10:11AM
jim cramerPatricia Russo added to the Hewlett-Packard (HPQ) board? Well, for heaven's sake, why not just add Carly Fiorina, too, while we're at it. Is this company unimpressive or what?

It seems to me that Hewlett-Packard is shuffling deck chairs on the Titanic, trying to get the new guy, Leo Apotheker, a more agreeable team to work with. Either that or there is yet another back story that this once-pristine paragon of corporate governance just isn't telling anyone.

It's not the only thing that's difficult to fathom. Like what happened at Google (GOOG), where Eric Schmidt did such a terrific job as CEO before stepping aside to let Larry Page run the joint. Hey, Page founded it, he can run it for certain. I just hope Schmidt stays around to help do the job, unless, perhaps, he's moving to Washington, where he would be a fabulous addition to the Obama team.

But let's just spend a second talking about how ridiculous the addition of Russo is to the "house cleanup" at Hewlett-Packard. Russo famously helped run Lucent (LU) into the ground. She is one of the least capable CEOs, not just in America but in Europe, as she's managed to do a terrible job there, too. If that's Hewlett-Packard's idea of an upgrade, good grief.

 

Post continues after video:

 

Hewlett-Packard, like its challenged friend Dell (DELL), has very little going for it in terms of growth. It's got a decent consulting business and a slow-growth printer business, but it and Dell have the most to lose in terms of the Apple (AAPL) iPad revolution. Changing the board isn't going to matter. Changing the culture back to innovation will.

Hewlett-Packard is a troubled company. No doubt it is cheap. I think it's just going to stay cheap. And last night's board shuffling, as massive and striking as it is, won't produce what Hewlett-Packard needs: dazzling new products that can grab the mobile Internet tsunami by the horns or dominate the cloud.


It's just not happening.


At the time of publication Cramer was long AAPL.


Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.

 

Follow Cramer's trades for his Charitable Trust.


Related Articles

1Comment
Jan 21, 2011 11:48AM
avatar

HP needs more than new board members and they did not select the right CEO upon Hurd's departure.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

112
112 rated 1
288
288 rated 2
479
479 rated 3
645
645 rated 4
644
644 rated 5
653
653 rated 6
638
638 rated 7
483
483 rated 8
288
288 rated 9
123
123 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.