Dear John - sometimes it is tough to turn around a big ship. CPQ has blown many chances. Alluded to my previous post, the former mgt has failed to leverage the technology portfolio acquired from Tandem and DEC until now. But better late than never!
Technically, it will take a while to repair the damage, especially for such a large capitalization stock. Also, we are talking about compounding troubles here. The old ghost from DEC was added to the mix of a bunch of self-serving old boys from the former mgt rank. And the fear of Rosen mirco managing to boot. IMHO, the street is beginning to see Capellas is *his own man* <vbg>. I would go one step further, there is a strong parallel between Capellas and Gerstner, except the latter was already a superstar before taking over the ailing IBM. So, it is easier for the street to pump IBM once it turned around. Personally, I think pedigree is irrelevant, sometimes even counterproductive. Look at Armstrong at T, people expect the guy to walk on water! In that sense, that is in Capellas's favor. So long as he doesn't make any big mistake, sooner or later the street will come to see his steadiness. Of course, he still needs to make a few big coups like the supercomputer deal to caltipult himself to the rank of Carly over at HWP
best, Bosco |
