Ever since the CEO of HP, Mark Hurd left his post, the media has been rife with stories including one that seems to suggest that the CEO was not in the good books of the employees and that his tenure of office marked a down turn for HP. Superficially these suppositions seem true but upon careful analysis one will come to appreciate the fact that HP was more than its CEO. This fact is, HP will continue to be a formidable company in both the short and long term.
HP stock has been historically undervalued so now is the time for investors to take advantage of the double digit drop to invest in this company because sooner or later, the real value of these stocks are going to show and then the company will be headed for a sustained rebound. Investors who buy today will be taking advantage of current low prices for the high value stock of HP.
Hilary Kramer, a MarketWatch tech stocks writer, who has been following HPs impressive growth corroborates the Company’s potential when he argues that "most rational investors would agree that H-P stock is on the way up" and that he had appraised the tech leader’s performance "and found even more evidence that H-P stock is undervalued and a great value for investors right now."
Many factors account for HPs tenacity even during the recent recession that saw many giants falling away. The prime reason for HPs was the ingenuity of the CFO whose loss-control measures and prudent financial measures saved the company millions in Dollars which money would have otherwise gone to waste. It will be hard to believe that HP would want to dispense with a key employee over $20,000 unapproved expenses and a petty sexual harassment. The company cannot afford to lose a prime source of growth and industry power over such incidences. HP knew the hen that lay the golden eggs was not Hurd.
It is not true that his departure resulted in the fall of HP stock. There had been reversal in stock prices long since he left the Company. It was an industry wide fluctuation that also saw COMPAQ lose similarly.
HP has sealed its future growth with recent purchases of storage companies. The company is now geared up to leverage on its premium, affordable products with even more simplified and cheaper shipping. All of this translates into greater customer satisfaction, better patronage of goods, increased profits and enhanced stock value.