HP's CEO Removal: "Good Move, But Not Enough"
“Escaping from hardware is not a solution for HPQ,” says Global Equities Research.
In an e-mail sent to investors today, Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, said that while Hewlett-Packard (NYSE: HPQ) made a “good move” in replacing its CEO, this is not enough to get the company back on track.
“VC's & Private Equity Board Members would need to be replaced next,” Chowdhry wrote. “Their interests are probably not aligned with shareholders' interest.”
Moreover, Chowdhry says that “escaping from hardware is not a solution for HPQ; splitting the company is not a desirable solution.”
“We need to see strategic commitment from HPQ to continue to out-innovate in hardware, software and services,” Chowdhry affirmed. “Until we see that, investors should be on the side lines on this stock.”
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