Still scratching the head on this one.
The economy wasn't shrinking, but Mark Hurd squeezed the core printer development division at HP, once he replaced Carly Fiorina. Now, HP's looking to open a new division and sink a few billion into Palm?
The worst part about all this, is that Elevation Partners will actually reap a profit for their investment in Palm, while other stock investors will have lost money. I mean, if anything, EP is directly responsible for the lousy execution and PR - they popped their own guy into CEO spot at Palm - and yet they will profit for it?
I still have questions about Palm CEO's comments late last year before they did a stock offering that pushed their price up into the $16~$18 range. The stock dropped rapidly as their last quarter results were released, to the point that people realized the company wasn't going to survive more than 18 months at best. Was CEO Rubinstein purposely misleading investors to pump up the value of stock at the time of the offering?
I am dubious of capitalism; it seems like not only are the stock analysts a bunch of fools (or tools), but so are the ratings agencies and the CEOs of companies. There are shenanigans all around. That and Carly's evil sheep.
The world has gone to pot.
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