It’s time to sell shares of Hewlett Packard (HPQ) CEO Mark Hurd resigned today amidst news of an ongoing sexual harassment investigation. According to the Wall Street Journal, “Hurd violated HP’s standards of business conduct.”
HP investors should look to exit the stock. Hurd was the reason for the turnaround at HP. He oversaw its climb to the top of the PC market. He increased the company’s market shares in the desktop computers market, printer equipment, and laser printer market. He trimmed costs at HP and oversaw all operations of the company. Shareholders were rewarded as the stock has flourished. I am not sure that I have faith in HP to find another CEO with his talents. Who can forget the horrible reign of Carly Fiorina at HP before Hurd?
Investors have to have confidence in the CEO of a company. One of the reasons to invest in HP was CEO Mark Hurd. Now with Hurd gone, it will be difficult for HP to find a comparable replacement.