Hubris Fails Yet Again

9 February 2005

Carly Fiorina has resigned from HP. Some reports say she stepped down, while others indicate she might have been helped down from her perch high atop HP.

This follows a feud with heirs of HP’s founders, a lackluster acquisition of Compaq, countless service problems and Carol Loomis’s masterpiece in Fortune. Now a dispute with the Board apparently leads to this. We can only hope this marks the point at which the company begins revising The HP Way.

UPDATE: HP closed up $1.39 at $21.53. Dell closed down $0.03 at $40.99. IBM closed down $1.43 at $92.70. The companies’ P/E ratios using the last twelve months of earnings and their annual sales are:

  • HP – 18.72; $79.90B
  • Dell – 33.88; $47.26B
  • IBM – 18.72; $96.50B

HP and IBM pay dividends. Dell does not. We’ll see how things look over the next five or ten years.

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