It may be too early for Halloween talk, but The Legend of Sleepy Hollow inspires today's K-Call. Playing the role of Ichabod Crane this week is ArcSight, after a notable stint by 3Par.
Of course, Hewlett Packard is The Headless Horseman.
This tale of horror and gloom may end the same way for HPQ, and here's why.
We have talked on multiple occasions about those shareholders who base their investment decisions on the gigantic personalities of CEO's. Mark Hurd was certainly one of them before his successful reign at HPQ came to a crashing halt this summer in disgrace.
As Hurd, with the help of Larry Ellison, has picked up the pieces with remarkable swiftness, Hewlett-Packard has decided to carry on in the short-term as a dealmaking machine. First, they battled Dell for the right to 3Par, and now this week announced its plans to acquire ArcSight in another billion dollar deal.
Which brings us to Washington Irving's classic.
How does Headless Hewlett-Packard expect to name a successor in the right manner when they are forcing the individual to favor the deals? The company will either limit itself by eliminating candidates who suggest opposition or endure conflict with a hire who questions the acquisitions.
I understand the need for HPQ to appeal to shareholders bruised by the Hurd episodeby showing they are a force with vision. But making deals before appointing the new CEO might be a mistake. And Hewlett-Packard does not want to be a ghost feared by investors.
Programming note: "
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.