Mark Hurd, the Ex chief executive of Hewlett-Packard is having the best days of his life after he was made to resign in August 2010 under a cloud of HR shadiness. People don’t realise the value of a real diamond by thinking it as a piece of stone.
Mark Hurd’s struggle:
Thanks to the management of HP and the board that oversaw it all the replacement of Mark. The market saw shares of the venerable Silicon Valley pioneer go down by 75% within days of Mark’s replacement. According to Hurd’s friend, Oracle CEO Mr. Larry Ellison, this was the worst personnel decision of the management of HP taken since Apple board of directors fired its CEO Steve jobs many years ago. Mark has already given his notice of plans to cash out more than $30 Million in company stock.
Now Hurd and Ellison the CEO of Oracle have joined hands together to go for a long.
Today Hewlett-Packard has announced an $8.8 billion charge to Autonomy, the UK software company which Leo Apotheker, the short-lived replacement of Hurd who had agreed to purchase Autonomy for $10.3 billion. The reasons cited were a wilful effort to mislead the investors and potential buyers.
HP found out that former members of Autonomy’s management team used window dressing prior to the Autonomy’s acquisition by HP.
Apart from that HP soon discovered that it sustained $6.85 billion net loss for the fourth quarter as compared to an income of $239 million a year ago.
CEO Meg Whitman on CNBC publicly regretted voting for the autonomy deal during her term as a board member.
Investors are now saying HP as a Turnaround Supertanker who is taking water continuously. Investors are not willing to give the company a second chance to play with their money.
Despite the seemingly sufficient cash flow of HP, its dividend could be in danger next year according to analysts.
ISI Group apologised to the clients and announced that they can not mislead the potential investors by giving them a wrong picture or negative information by recommending buying HP shares any more.