http://online.wsj.com/article/SB10001424052970204531404577052563620787868.html?mod=WSJ_article_MoreIn_Tech

The value of bringing in any new CEO is the “reset”.  I am referring to Wall Street’s penchant for giving new CEOs time to fix broken companies. Think about it.  Everyone’s dire predictions regarding the company’s revenue and stock price dropping has occurred.  However, that appears fine for Wall Street because now there is a new CEO; hence a forgivable drop because we are in reset mode.

It is amazing what perception can do.

The reality is that H-P’s numbers continue to worsen.  Margins continue to drop but the Street is happy with Whitman because she has bought the company time.  The math is the math.

The company’s PC product line may be one third of the company’s revenue but the company’s profit margin is dropping rapidly.  What will Meg Whitman do for new revenue?

The obvious steps she ought to take are to:
• Revisit the wireless product line
• Revisit the tablet
• Revisit enterprise services

I am still torn over the PC business.  I tend not to move into new products quickly, I am the mass market.  However, I do believe that a company that has as much trouble facing it as H-P does, bold action is needed to re-direct the company.

The question is whether or not H-P’s board realizes that there is little time left for H-P to make a course correction.