I agree with all but the last few points you made. I think CPQ has a perception problem, but remember, Capellas didn't tank the stock...it was tanking when he came in. If anything, he stanched the bleeding. I don't consider 18 to be so bad when you consider how low it COULD have gone.
I can't agree that if CPQ sustains the 25/30 level, that he has done a bad job. This is a company that is having difficulties. You don't turn it around on a dime. Even Jobs couldn't do that - it took him about 2 1/2 years. It took 2 years before the stock really started to reflect the company's improvement.
I suspect that Capellas will get launched, and probably unfairly because he's in a tough situation. All things considered, CPQ is in a good position. They aren't as tied to interest rates as other competitors, they have their chips lined up for the next few years at locked in rates - when the market is tightening, and they are engaged in several alliances/partnerships that will begin to payoff in due time.
All things considered, I think CPQ is getting back into a decent position. |
