Shares of Hewlett Packard hit fresh lows after Mark Hurd was ousted from his post as CEO amid a sexual harassment scandal and allegations of improper expense accounting.
After two months of staying mum, the company hired an outsider to take the helm, surprising shareholders who were expecting the board to appoint an internal candidate.
Instead, HP named Leo Apotheker, who spent more than two decades at SAP, including a brief stint as CEO.
Most see Apotheker as an unusual choice and are curious to see how he leads HP beyond its core hardware business.
"HP didn't handle their management issues very well," said Tom Harland Forester, chief investment officer at Forster Capital Management. "Like most everyone else, I liked Hurd a lot, so I was sorry to see him go. And the jury is still out on Apotheker."
Earlier in the year, HP's stock had come under pressure as Apple's iPad started eating into PC sales, Forester said. Last month, HP released its Slate tablet, but didn't go head-to-head with Apple. Instead, it targeted the tablet to business customers.
Forester thinks shoppers will eventually return to PCs after the tablet trend wears off, and that should revive HP's notebook sales.
"HP's now a cheap stock, and it's still a strong stock," he said. "We still like it, and think it will still outperform the market over the next year."
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