Trading Tech After HP Names Mark Hurd Replacement

Once again, sudden developments out of HP left Wall Street stunned. This time the tech titan confounded investors with their replacement for Mark Hurd.

Despite chatter that the board would go with an internal candidate, in the end the tech titan went outside the company.

And not with Steve Mills from IBM or even Mike Capellas formerly of Compaq, the two rumored front runners among the external candidates. Instead they named Leo Apotheker as the new chief executive officer.

Never heard of Apotheker? He was previously co-CEO of SAP, but his contract was not renewed.

"I've talked with some Silicon Valley executives and the universal thing I'm hearing is - the choice is a little puzzling." says CNBC's John Fortt.

While at SAP Apotheker "was seen as not having moved fast enough as CEO. He was viewed as not being the guy to lead that company through a period of change," Fortt tells the desk.

He goes on to say Apotheker will likely face a serious of challenges at HP.

"Apotheker doesn't know hardware because SAP doesn't do hardware and HP has got quite a bit of it. He doesn't know acquisitions because SAP doesn't do those. And he doesn't understand change management because SAP has been going along a path of software application."

What’s the trade?

The news is clearly underwhelming, admits Karen Finerman, and the stock is dropping in the post market. I think Wall Street was hoping for a rock star. However I think valuations are attractive. A lot of the negatives are already priced in.

If you believe in the tape I also think HP is attractive, adds Guy Adami.

The company is exactly the same today as it was yesterday, muses Brian Kelly. If you liked the stock then there's no reason not to like it now.

I'm a buyer on the news, says Steve Cortes. I think the Mark Hurd premium is overdone. HP showed that by doing acquisitions recently they have a strong bench.

I agree that a lot of negativity is factored into the stock, adds Brian Marshall of Gleacher. As far as I'm concerned HP shares are attractive right here. The weakness in the aftermarket is an opportunity. I expect the stock to go to $50.

Brian Marshall has a lot of great insights on the move. Hear everything he has to say. Watch the video now!


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Trader disclosure: On Sept. 30, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Guy Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT) and his wife works at Merck. Finerman owns (PM) and (IBM). Finerman is short (IJR), (MDY), (SPY) and (IWM). Steve Cortes owns U.S. Treasuries and is short the euro, the British pound, Mexican peso, (XLF), (BAC), (LVS) and corn; Finerman and Finerman’s Firm owns (BAC); Finerman and Finerman’s Firm owns (BP); Finerman and Finerman’s Firm owns (FLS); Finerman and Finerman’s Firm owns (JPM); Finerman and Finerman’s Firm owns (RIG); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

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