U.S. stocks review: HP is a corporate error synthesizer

Introduction: MarketWatch Columnist Rivers (Jeff Reeves) wrote that it is no coincidence that Hewlett-Packard has come to the worst of the day because they are, in effect, the epitome of the current American Corporate error-stupidity, lack of innovation, excessive expansion, and no real sense of leadership. The following is the full text of Rivers ' comments: for the market, the Thursday trading day is an ugly one. But for a short time, HP's share price has been dramatically upstream, largely because of media reports that they are considering making a big 10 billion-dollar deal to buy software company Autonomy, a time when various reports surround the company, creating a whirlpool.　　HP's shares rose about 6% per cent when the Dow Jones industrial average fell about 400 points from the opening. Of course, the rising tide soon receded, the day Hewlett-Packard (HPQ) finally declared low, and the market almost all other shares.　　Some investors were elated for an hour and eventually found out that their so-called profits were just illusions of some numbers. In fact, HP's Thursday performance is quite typical--in the chaos of corporate development, any hope of brilliance is short-lived.　　Large-scale acquisitions, announcing a rethink of their industry's position, are using their hoard of cash in a high-profile way as the entire business community suffers from the economic downturn ...　　Hewlett-Packard is now the epitome of American Corporate error-folly, lack of innovation, excessive expansion, no real sense of leadership. When it was foolish to buy palm in 2010, many people felt that the company had gone mad. At the time, Hewlett-Packard was not coy about its own purpose, but instead adopted the most typical boast of the big deal. No, just look at what Hewlett-Packard's website said at the time: "Palm's innovative operating system offers an ideal platform to help expand HP's mobile strategy and create a unique HP experience for a variety of mobile connectivity devices."　　"This is the personal System Department executive vice President Bradley (Todd Bradley). Ringing。　　In Thursday, Hewlett-Packard said it would give up its efforts to make a profit in the mobile market and kill its webOS-based tablet and mobile-phone business with the best expectations of palm.　　Only an overly bloated company like Hewlett-Packard would do the 1.2 billion-dollar deal during the recession and then give it up after just 16 months.　　Incidentally, in February, Hewlett-Packard also shouted loudly, said to let their products and the ipad head-on competition, but now can only sadly renege.　　The lack of innovation 1.2 billion dollars for palm has been a tragedy, and more tragically, it is just the tragedy of HP's management frenzy to burn money-they have too much money and are too excited to spend it without thinking. November 2009, this familyThe tech giant spent 2.7 billion dollars on the acquisition of 3com, a router and digital security company.　　Then, in September 2010, Hewlett-Packard and Dell (Dell) launched a bidding war, the competition for data storage and cloud computing company 3par--Hewlett-Packard "defeated" Dell, their bid is 2.35 billion U.S. dollars, 33 dollars per share, compared with the 18 U.S. dollars issued by Dell a full 83%.　　Now we hear they are going to buy the British software company Autonomy, the bid is 10 billion dollars. In essence, HP now admits that the Palm deal is a disaster.　　However, even if we give HP the greatest confidence that other deals are worth it, we cannot fail to say that HP is basing its future profits on the achievements of other companies, based on their efficiency in integrating acquisitions. If you're a CEO or other executive who lives at the top of the food chain, that's fine. However, if you are one of the 25,000 people who were abolished after the 2008-year 13.6 billion dollar acquisition of electronic Data Bae, or one of the 9000 employees who were abolished in 2010, or belong to a number of years in the future due to eating too many companies will inevitably happen　　One of the employees who will be abolished in the integration, your idea is not the same. Hewlett-Packard in fact can be through innovation and critical thinking to grow, at least they can also use a greater strength to do their own traditional business, access to more customers, more business.　　Just to do this, they must have a real leader and a real entrepreneurial spirit.　　Excessive inflation so, in just two years, they burned 16 billion of dollars, carried out four super transactions, the acquisition is engaged in the business of consumer electronics products, data storage, network and enterprise/search software.　　Of course, the board could defend itself by saying that HP is trying to diversify its business so that they can provide a wide range of collaborative services for their customers, both to gain economies of scale and to maximize profits through the integration of related products. But in fact, they'd better shut up and listen to what companies like Cisco (CSCO) say.　　That's what John Chambers, chief executive of Cisco, says. "Let's assume that when you grow close to 20%, you can afford to bet on multiple areas at the same time." "When you have a low growth rate, say, half of the former, you can't afford too much," Chambers said in April. Therefore, we will reduce the number of priority items, focus on the five most important. "In fact, the outstanding enterprises become a bit bloated, focus is not concentrated, is not a rare thing." Even the darling Apple of Wall Street, AAPL, has had a tumultuous time. The now iconic technology company, which had been on the brink of the cliff in 1997,Steve Jobs has been recovered to change his destiny. You can find the 1997 Macworld video on YouTube, and Mr Jobs's statement was simple, but prescient: "Apple will no longer reach many places like this, but in some extremely important areas, our presence will be extremely important." "In short, Jobs and Schultz (Howard Schultz) didn't invent anything new.　　They just put aside the unimportant things and make the business work smoother. HP did not learn from experience.　　In fact, they continue to spend more and more money, want to buy the next big event, but do not realize that they are completely different.　　Lack of leadership Perhaps the worst thing about Hewlett-Packard is that the company's management is simply a haven for freaks, all of them delusional, or rather insane, that has been clearly seen in recent important initiatives. The company announced a 10 billion dollar share repurchase plan in 2010, carrying out more than $4 billion trillion in size. A few weeks ago they announced plans to buy back 10 billion of dollars. Yes, HP has 12 billion dollars in cash as of this spring ... But the deal they announced this week will cost 10 billion of dollars, and what is the money to buy back?　　Is the repo Plan a PR act, just to boost investor morale, or, at the time when it was said to buy back, that management really didn't know that they would soon spend 10 billion of dollars on the deal? When it was profitable in Thursday, Hewlett-Packard downgraded their revenue forecasts for this year, which would certainly hurt the performance of equities. However, the more upset, or outside the declaration of the cabaret.　　In an outside talk about Hewlett-Packard's thinking about splitting up the PC sector, they have surprisingly confirmed their own, and have also cast a bombshell, announcing that they want to abandon their webOS mobile business.　　How exactly does this company work? With the company continue to find their own way forward, the problem has become increasingly large and more prominent.　　Fiorina (Carly Fiorina) was forced to resign as chief executive and chairman of the company in 2005 because its board members "disagree on how to implement HP's strategy". Then, in 2010 years, Mr. Hurd Hurd the alleged sex scandals and improper spending practices.　　HP's leaders are again frustrated. For shareholders, the most frustrating part of the leadership is the vacuum. They will always be a stupid company, making inexplicable decisions about how the stock price will behave, before HP is truly mature. (Yuxiang) This article for the translator authorized Sina Finance exclusive use, any media cannot reprint without authorization. If you need authorization, you must contact the author by Sina Financeand received written approval. If reproduced in this article, the Translator reserves the right to prosecute, until the legal responsibility of the person who reprinted.