Personally, I think CPQ can go it alone better than with HP. If CPQ were to receive the $675M, that would be the icing on the cake, IMO. After having fired a bunch of people, reduced inventory, eliminated processors going forward, etc., etc., CPQ could benefit significantly from the leverage when the market recovers, its $4B+ in cash, sending the stock much higher than the $13 or so provided by the conversion of CPQ stock to HP stock at the 0.63+ ratio, IMO.
What is missing at CPQ is demand more so than restructuring, and a clear marketing message, which it has never had, again, IMVHO. The demand is driven by the larger economy, and investment tax credit, accelerated depreciation, etc., while the marketing message is driven by a need to understand how to reach and communicate with customers at the consumer, corporate (internal and external), and educational levels. They have no marketing "hook." |
