Well, that didn't take long. The buzz of Labor Day weekend centered around Oracle's courtship of Mark Hurd.
Just one month to the day of his ouster from Hewlett-Packard, Hurd joined the software titan as Co-President and will report to Larry Ellison. Many are forecasting an Ellison-to-Hurd succession.
It is clear that the damage of Hurd's disgrace was merely two minutes in the penalty box, or in Hurd's game of choice's terms, a foot-fault on his tennis serve.
Bottom line, if I were a holder of Hewlett-Packard shares, I would not be happy. After watching the stock decline dramatically over the month, I would not appreciate the irony of my deposed CEO's ability to take vengeance as a rival.
Loyal followers of the K-Call will remember my warnings about owning shares when the CEOis larger in stature than the company itself. Now, Oracleshareholders have to be concerned about the same dynamic, but my "Call-to-Action" is clear: watch Oracle carefully in the coming months for potential upswings after this hire.
Hurd is 53, in his prime, and likely more energized than ever to show his worth. He has experience running a software operation in Teradata ,whichis now a rival of ORCL when he was CEO of NCR .
That Ellison defended him immediately following the early August scandalsays a great deal about their relationship. This support strengthens Hurd's motivation to prove the Hewlett-Packard board wrong for letting him go - indiscretion or not.
Don't think that Hurd doesn't still have loyalists in stockholders who would love to profit from this new venture. Many Hewlett-Packard owners were thrilled by his hard-hitting measures to cut costs and boost performance the past five years. Perhaps, many of them will drop their HPQ shares (if they haven't already, and judging by the current stock price, many Hurd loyalists have) and buy ORCL. Those who already own Oracle may add to their position with this hiring score.
This reminds me of the Mickey Drexler episode. Another superstar CEO who was ousted by his board at Gap, Drexler came back swinging at J.Crew. I would imagine a poll of J.Crew holders would reveal a number of Gap stockholder refugees. Drexler, adulated by so many in the world of retail, attracts his own demographic on his stature alone within JCG circles. We could see the same transpire for Hurd at Oracle.
How quickly things can change in Silicon Valley. Of course, many will be watching for bigger clues that Hurd is the man to succeed Ellison, but in the meantime, watch for traders who chase big names in personnel. Hurd is no longer someone with just a strong track record (at least in business terms). The man Ellison hired is on a mission.
The summer scandal could possibly transform into another success story for Hurd and his following. Either way, think about how much has happened in just one month. It will be fascinating to see how this one unfolds.
Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.
Gary Kaminsky does not hold any equity positions.
The content of this blog is published in the United States of America and persons who access it agree to do so in accordance with applicable U.S. law.
All opinions expressed in this blog are solely the opinions of Gary Kaminsky and do not reflect the opinions of CNBC, NBC UNIVERSAL or their parent company or affiliates, and may have been previously disseminated on television, radio, internet or another medium. You should not treat any opinion expressed by Mr. Kaminsky as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Kaminsky’s opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Kaminsky, CNBC, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Mr. Kaminsky’s statements and opinions are subject to change without notice. No part of Mr. Kaminsky’s compensation from CNBC is related to the specific opinions he expresses.
Past performance is not indicative of future results. Neither Mr. Kaminsky nor CNBC guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website or on the show. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this website or on the show may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this website or on the show. Before acting on information on this website or on the show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.