HP’s new CEO declared the decision to potentially spin-off its PC division and stop WebOS it just purchased two years ago. In the meanwhile, HP announced 10B offer to Automony to move into enterprise software service area. The share price dropped 20% on the same day.
From valuation perspective, HP is dirty cheap now, but I decided not to purchase for following reasons.
- HP changes leadership too frequently in last two years, and this results in confusion in its long term strategy.
- The current CEO is from SAP, but he worked as SAP CEO for just one year before kicked out by the board.
- The decision to spin-off PC division was announced/leaked, without thorough consider on the people in PC division. How would HP’s people in PC division think and work buy any buyer offer at ridiculous price?
Simply put, I completely have no confident on HP’s lead at the moment. This decision will be reviewed probably 12 month later.