HP shares down more than 20% in wake of yesterday's bloodletting | webOS Nation
 
 

HP shares down more than 20% in wake of yesterday's bloodletting 141

by Derek Kessler Fri, 19 Aug 2011 3:21 pm EDT

Yesterday HP announced plans to spin off their highly profitable computers division and shutter webOS device development, all in a bid to focus on enterprise services and software (along with printers) to maximize shareholder value. At the same time, CEO Leo Apotheker announced plans to acquired data management firm Autonomy for $10 billion.

If the reaction from the floor of the New York Stock Exchange is any indication, the shareholders aren’t exactly thrilled with this decision: shares of HPQ opened down more than 20% this morning and don’t show any signs of recovering in the day’s trading. Shares of HP have hit a new six year low. Overnight, HP managed to erase more than $12 billion in shareholder wealth. Yep, that’s how you maximize shareholder value right there.

Update: HPQ closed down 20.03%, lowering the market cap of HP by a whopping $12.23 billion.

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141 Comments

I hope their stock bottoms out! (And I own HP stock.) I don't care, though. They need to get the message that they made a DREADFUL decision, yesterday.

The irony of it all is that HP decided to get rid of their PSG because they felt it was in the best interest of their shareholders.. today their stock is down 20%.. i think their shareholders would've preferred it if they'd kept things the way they were.

Indeed, flat but stable vs crashing in flames, it's an easy decision. Didn't PSG actually grow a few percentage points in revenue from the last year anyway?

Yeah, I also remember they mentioned growth from last year!?
How things are going, next year, SAP will buy HP for 10 billions.

Hitler thinks so too. You can see his reaction here:

http://www.youtube.com/watch?v=YaeOXyA7wo0

This is so good. you have to watch

this meme never gets old... thanks for sharing!

I have one word for you, tampaguy: SELL

12 billion in losses is a big deal. I don't think the stock is even worth selling right now, you may as well hold on and hope it rebounds so you can at least break even.

True. Depends on your purchase price, I guess.

As soon as it goes a little bit up, wouldn't it be a good time to buy stocks?

I highly doubt HP is going to fail.

Damn that is harsh. I have a feeling we are going to see more than a few class action suites flying HP's way in the coming months (sorry had to do it). If I were a shareholder I would be calling for Leo's head on a stake right now. I can understand the motives for the move and in all honesty it's not a bad direction to move the company but he is going about it all wrong. First he is spending 64% over market price on Autonomy and is going to spend 33 times the expected 2011 earning on the company which is just nuts. Second by essentially killing it's product groups before having the services sector up and running he has killed all consumer confidence in the brand which means no more lucrative enterprise sales on systems. If the services component falls apart (which it very well may thanks to very stiff competition in the market with industry heavy weights such as IBM among others) Hp now has nothing to fall back on essentially killing the company.

We run over a thousand HP Proliants and Procurve switches. TouchPad was in the runnings for approval as a BYOD device. At our next contract negotiations, guess who will be presenting a strong case AGAINST HP to our CIO?

If the board and shareholders don't quickly realize what a mess this is going to become, and how much wealth they will lose (they've already lost roughly 25% of their value the past two days!), then they deserve what they get. If they want to save HP, fire Leo "THE Moron" Apotheker right now, and stop everything he started, including the canning of webOS devices. You have to at least get back in and push it until you've cleared inventory and can license it out.

AT&T has already put a stop on in-coming orders of the Pre 3. What a total cluster f*** that Leo has brought. I am amazed that the board is just sitting there, even if they wanted to be just a software company, and letting this happen.

Shareholder lawsuits aplenty are on the horizon...mark my words. Unless they turn this boat around ASAP, HP is dead.

What the **** are you STILL doing with HP stock, especially after yesterday's announcement? You should've started selling immediately after they made their announcements.

Not just that they made them, but the WAY they made them. What kind of company sends out press releases that undermines its own financial future hours before a quarterly earnings statement?

A company that's run by incompetents, morons and buffoons, that's what. I wouldn't trust them with someone else's money, let alone my own.

Exactly right. A few months back, it was "we're in this for the long haul". Now it's "Two bad quarters and we're outta here". Not the actions of a company you'd establish a long-term business partnership with.

Short-term, easy-ROI thinking has been whittling away at HP for years ever since the Agilent spinoff. I wonder if they can recover?

It sure makes IBM look good by comparison.

HP management fail!!!

Can we get a call to action? Have the WebOS P|C Masses Tweet and FB post HTC and/or Samsung to buy WebOS!

#WebOS-Savior

P|C you need to rally the pissed off Mob that is WebOS fans... PLEASE!!!

I dont want android or iOS!!! :(
I want WEBOS!!!!

The planned purchase of Autonomy for a rumored $4 BILLION can't be helping much. That's for a company that organized email and other documents (or something like that).

UPDATE: Did I say $4 billion for Autonomy? Oops, I meant $10.24 BILLION.

If I were an Automony employee, after seeing what happened to Palm, I would be ..concerned.

True, true... cause if Automony is really good and innovative at what they do some months ahead from now HP might "flex its enourmous mussle, scale and blabla" and "double down" as the "number one plus plus " on kitchen furniture or lawnmowers... ;-)

to be fair they are probably doing backhandsprings as their stock options just got them paid.

it also can't help when they cut the estimated earnings for next quarter by a ton.

update: just did some poking around. seems the big things hurting the stock today are, one, they don't like spinning off a still profitable branch, two, they think they paid too much for autonomy,

All webOS device owners should file a class action lawsuit against HP for releasing a device and discontinuing it a month after while giving false promises of updates and better devices to come.

Is this possible?

you can file a suit and it will get tossed because it's because a failed product is not an actionable misrepresentation. you have to prove they knowingly lied to customers which would constitute an actionable fraud. merely selling a device and canceling it isn't against the law. then every phone line that got discontinued, video game system, like dreamcast, zune, new coke, mcribs, etc etc would constitute an actionable claim merely because they had a commerical and the product didn't sell. That's not the law no matter how much people want it to be.

mcribs werent discontinued...they are always sold for a limited time

and i would like to believe apotheker knew about them not continuing w/ devices, he is the freakin ceo, and i doubt he made the decision the day of the call.

Pre3 preorders might have a shot of a settlement - though they could much more easily return the devices. But releasing them a day before they discontinued the product line? Worth a shot.

sorry i don't eat at mcdonalds.

you can say you'd like to believe what you want. it matters what you can prove. And it's perfecly within a business' right to say, "if the product doesn't sell well enough we'll stop making it." Even if they say that before the product is announced. There is no factual basis to claim a material misrepresentation that is not allowed under the law. Courts look at the policy implications of a given ruling and it's patently against public policy to hold a company liable for failing. Nobody would try to make anything. That would hurt the public. I know people want some retribution but unless you can point to some sort of material lie you've got no case and no lawyer would fund the litigation of a class action. You'd have to pay the lawyers up front.

what you need is proof. If you want to get it. start trying to find palm employees and look for statements from well earlier this year showing not just that they might stop making devices but that it was certain. It pretty much has to be certain or it wouldn't be actionable because the standard would be a good faith belief that what they are stating, they want to sell touchpads etc is true. Because as long as they think it's true it's not gonna be considered lie.

While that sounds feasible, I'm not sure it has any legal foothold. I'm afraid we bought the devices with no legal obligation of support, aside from warranty.

Even if it has no legal foothold if a large number apply for the lawsuit it would cost us individually very little money and it will drag HP to court and make them look really bad so they learn their lesson.

can you get on this?

I would be all for it. I have already spent so much money in products that are useless now that a little more is not going to make a difference. Plus it would make me feel good.

Nothing is useless cause of this! It's just not going further forward, so it's status quo.

But if the pull servers and services (app catalog), they make things pretty useless and need to be reprimanded severely.

if it has no legal foothold it will get tossed at the complaint stage which is the first one for failing to meet the prima facia case. You'd complain, they'd respond, and move for a directed verdict and they'd get it done. plus you'd run the risk of having to pay hp's attorney's fees should they find that you're claim was frivolous. That i think is a bit of a long shot but it's a possibility. my advice. is let it go. Return your device if you can, try pestering hp for a refund if you can, buy a new phone. Move on. It's not really worth spending you're own money.

Do you remember the sony ps3 situation about a year ago or so? It have to do with being able to install another OS on the system.

Sony removed that feature that was advertised and got **** for it when it was removed, which resulted in a lawsuit in Europe i believe.

We were promised doc editing and so much more so I think we have a lot of foothold for a lawsuit.

I think people were promised Touch to Share. Did they make that work with the Veer? Otherwise, I think that might be some legal ground.

We bought it under a false pretense that it would be supported.

I think one reason for HP to keep WebOS, the software alive, is to avoid this type of thing. They can always say the current devices are still supported, blah blah blah.

However, the product does not work as it should there are missing features. There is no Touch to Share (Pre3 and Veer is not available anymore), Quick Office Editing, scale, vertical stack, WebOS on PC’s and printers? There many more and this is your agreement! Where is Armageddon Squadron II!! Where do i SIGN!!!!

Sounds great. The trouble is that it will end up in a settlement where customers get some HP gift cards (which they probably won't use) and one lawyer will get loaded with 50% of the settlement. Maybe he will use the money to buy WebOS...

Leo Apotheker = Doofus

I wonder if I could trade some shares for a pre3?

You can currently get a Pre3 for ~10 shares. Hurry, because by next week it might be 25 shares or more.

Can't imagine how many thousands of people will lose their jobs because of one idiot.

this isn't the first and last time

**** yes Derek. Let the dog eat!

I'm the biggest webOS supporter I know, and that's why I currently despise HP and their decision makers.

They killed my favorite company Palm and my favorite operating system webOS. HP can suck it.

I can't believe one of the best companies (Palm) was destroyed by bunch of greedy fools.

I don't even see how greed had anything to do with it. They have ham-fisted the handling of the Palm buyout from the very beginning, and have seen such a large negative return that it boggles the mind.

I'd be more inclined to say "...was destroyed by a bunch of slack-jawed, mendacious ne'er-do-wells."

Hurd should have stayed, HP board is the True FAILURE.. Hurd bought Palm, he probably knew the vision and potential.. When Hurd got the boot, they should have given the job to McKinney (? or whowever that one guy was who we all thought was the runner up for CEO)

It's greed because they thought they could rule the mobile world and make a ton of money and as soon as they realized it is harder than they imagined they dumped it.

To be fair, Palm was destroyed by themselves.

Great graphic.

That does not seem like a very good decision on his part. I wonder if he is sitting in his office saying "Oh, crud... what have I done!!!"

I can bet you that the Board is thinking the same think about him

My guess is the board picked him to do exactly this. He is a enterprise software guy and the writing has been on the wall for a while now about "the PC is dead" I think it is all mularkey, but I think Leo and the board had been planning this ever since he was hired.

Whaaaaaa? Spend 1.2 billion dollars to acquire Palm so that they could lose 12 more billion dollars?

Palm was acquired before Leo was.

exactly. he's been saying this enterprise focus stuff since the day they hired him. and i just never thought it was reasonable to think when hp was already underperforming that they'd just float webos for years.

Me too, but I didn't expect launch of defected devices crippled by design again. I thought HP is serious with WebOS and at least in engineering segment they will not allow flop.

I bet it's not "crud" he's saying...

The resentment on this site is palpable. Such a sour taste. F*ck HP

So how is this choice working out for you, Leo?

If only Mark Hurd was professional...

He'll eventually get fired and walk away with a $50 million "umbrella".

Thats the bull**** truth. =(

Lest we forget these two clowns almost ruined Apple, Michael Spindler and Gil Amelio, so Leo can follow in the clown almost ruin a company by a CEO posse.

Haha. Classic picture.

I called this stock tanking yesterday, but i didnt think it would be this bad.

is there a possibility to get leo apotheker fired... if yes - plz do so!!!

the thing is, leo was always a software guy, right? and the board of directors brought him in as CEO. and everybody was scratching their heads when it happened.

but maybe the board had a reason; they must have had this new "direction" in mind already.

this is how it works usually in a changing of the guards. the board figures out the general direction they want to go, and then gets a guy they think can get them there.

maybe they're seeing the decline of the personal computer in a few years or so. i know right now that the tablet is no replacement for a laptop much less a desktop. but the cell phone did eventually become a viable replacement for land lines.

What did he expect that leo guy. Plain and simple stupid. I totally concurs with Derek no balls no brains. Derek you said it.
Here I am with my Pre- running 2.0.1@ 800Mhz. Yesterday I was so thrilled, I filled out the order form at palm UK for a Pre3 just to see if it would allow me to get one in sweden and it did lucky for me I lacked funds to hit the order button.
Now I find myself in a no mans land the greatest mobile Os and there will not be an app ever again.
Web OS internals you guys rock.
Got to stop now it's just to sad.
when things started to look good...............................?

as a stock holder I find this man a complete fraud. Since he joined HP, the stock is down roughly 45%. He should be in jail.

One of Americas greatest and historic companies who always hired from within and had pride in taking care of it's employees and customers has failed with it's last 3 CEOs - all hired from the outside. And this last clown isn't even American. He can't even go into some Federal accounts that we have had for decades.

I see some stock holder law suites coming soon - not that they will go anywhere as HP has bigger lawyers and more money to fight it.

I am finished buying HP, I am done recommending HP. So long aholes

What about Sprint!!! What are they gonna do with all those Pre3's?

I don't think Sprint has any.

Good for them. I hope HP goes **** belly up. A$$wipes

I have to admit I do enjoy the new Bitter Derek articles. Then isn't to say I don't understand exactly why he's bitter. I've gotten some good chuckles out of the news, if nothing else.

He's finally come to where alot of us were for months. Just now it's official. Now PLEASE HTC BUY WEBOS PLEASE!!!!!!!!!!!!!!!!!!

Surprise Surprise Surprise I'm thinking they really don't know how to crunch numbers over @ HP, pretty sad for a company that is trying to position itself as one that is in to services and software.

HP frakking deserves everything they get.

I hope they fall like the DOW did at the start of the recession.

Frak HP.

But, lets hope that this shareholders protest gets the point across that webOS is a better investment than Autonomy...

Bull $hit.

Any of you have experience with WinMo 7? It LOOKS like the closest alternative to webOS?

It's awesome! But no mobile hotspot!! :(

i am just going to go for iOS, i know my friends are going to say ahhhhhh! told you so. F em..

Damn, this guy ruining HP! (Who is he "really" working for, DELL perhaps!???)

Dell's stock was up today......maybe.

my guess is the CEO and VP's of Autonomy are good friends of Leo's and they will all get fat bonuses from the acquisition. Leo abused his power to seriously over pay for them.

and the savings from job cuts....

Naaaaw, I betcha Steve Jobs got him on the Apple payroll! (we all know they can afford him and shut down webOS in the process.. **** they might even be trying to buy webOS, once the price is low enough!)

WebOs had so little marketshare, i dont think that Apple even knows that there was any competition

Actually they did that's why they hired so many people from Palm when they were bought. It's the reason we are seeing some movement on notifications.

So much for using HP stock as the basis for a future acquisition or merger.

down with Leo!

According to this article, HP's decision is bringing down the entire market!

http://www.reuters.com/article/2011/08/19/markets-stocks-idUSN1E77I10S20...

If true, $12B is HP shareholder value is just the tip of the iceberg!

DAMN YOU LEO.

yes, the american markets and this guy isn't even american. get ride of this sob.

I thought the excuse for dumping the PC business is that it wasn't "highly profitable"?

It wasn't as high-margin as they liked.

Yeah . . . I saw a reference to it (the PC business) as "an albatross around HP's neck" but they get half their revenue from it?

WTF?

I knew the stock would tank today. Great job Leo! You cause HP to lose 1/5th of it's value in one day. You sir are a complete fool. You couldn't run a ride at Coney Island! I honestly think this was the board of directors plan all along. That's probably the real reason they got rid of Mark Hurd and put a software services guy in charge of the company. They wanted to turn HP into SAP. They are all idiots! I hope the stock tanks so much that they realize their idiotic mistake, fire Leo, and bring in someone who can salvage the reputation of the company.

This

Serves them right. Wreck the best OS to date, lose 12 billion dollars.

just think guys if they had invested just 10% of the 12 billion they lost in sharehold value i'm sure they'd have made a better return. lol this is soo sad, wat a **** trainwreck. this guy really screwed the pooch. lol his one decision brought down the whole market lmfao crazy.

394 million vs 12.5 billion. That sell order couldn't get in fast enough.:)

That's what happens when you come out and tell the world how big a p**** you are.

Remember the old couple who were out in the boat when the house exploded in "What About Bob"?

"BURN, BURN!!!"

We can all pretend it's Leo's house!

A possible correction for this might be to fire the CEO.

Not that the fault for the need to pull apart the HP PSG business was his, but there needed to be a better strategy and focus than a summarily rash announcement.

Firing the CEO would show the board's (HP's) disapproval of the CEO's approach. I can't imagine why they might let him continue executing on the company's behalf if his first step to execute a plan to increase shareholder value leads to a huge dip in stock value.

At least, his method of announcing the discontinuation of webOS devices in the wake of new global product releases showed a lack of regard for their customers, shareholders and employees which I don't expect any company would tolerate.

The CEO gets fired, I'm sure he gets several millions in severance pay.... why do corporations do that when they hire?

You gotta convince **** somehow to work for you.

That's business as usual in today's business ;-)

It's all about the money. And even more it's about the money they don't own. If the shareholders decide that they are not happy about their wins, people are more often to start shooting from the hip, today.

Well, we had a meeting, this afternoon. Today's topic: HP's future in our own small business. We own three EVAs, which are going out of support over the next year, so decisions have to be made. My Boss is quite pissed about HP atm (bought a ProBook and a Touchpad) so I was quite happy when he suggested to look for a better product from a different manufacturer.

RTMF HP.

Serves them right. They made all of these terrible, horrible moves, blew the wheels of a platform that really needed their investment to take off, took away the jobs of hundreds, if not thousands of people in one phone call, and they somehow expected the market to react positively. They did all of this in the pursuit of more money, when in the end they ended up erasing $12billion in HP wealth in just one day. This is the kind of stuff we haven't seen since Lehman Bros. and it serves HP right.

well. Their share price has been dropping since February, in a very much steady pace...

Reminds me of the clip Paul Rudd showed on Conan the other day. The kid (HP) was rolling down steadily until all of a sudden he just fell of the cliff. Unfortunately, I don't think there's a freaky alien waiting down there to rescue HP.

No Pre3's from AT&T

Where's the bring back Palm corporation campaign!!!!

So how much lower does it need to go before Dell, Sony, Asus, Innova, Samsung, or my grandma can buy 51% in a sudden buyout and stop this from happening?

One question. When can we get back to the real world, not this fantasy where Palm products were compelling and sold well?

Face it. The hardware kind of sucked and the software kind of sucked. The development platform kind of sucked. The marketing kind of sucked. The design execution kind of sucked. The retail execution kind of sucked. Palm's timing kind of sucked. The carrier relationships kind of sucked. The Touch-to-Share concept kind of sucked. The industrial design kind of sucked.

HP didn't do anything that stupid other than to think that it could revive Palm from where it was. The idea of webOS everywhere was kind of ridiculous but that's PR for you.

And, the way that people made HP their personal hero over the past year is absurd. This is HP of the generic gray hardware. They are not your techno-hero. They are a global conglomerate that tries to get into everything in technology. If it doesn't work then they zombify it like the iPaq or they spin it off into oblivion. Don't put their sticker on your car or your laptop. Go to the store and buy another phone and perhaps another tablet and move on with your life.

Lew Platt was the last CEO that really cared about the company and he really believed in inovation...

If i remember well, one of the reasons why they threw out Carly, was because she wanted to merge IPG (printers) and PSG (pcs).

What happens right now is just as drastic and HPs board should just do what was done to Carly - throw this $%&%-head back to the jobmarket and hope he'll never get the chance again to be put into a managing position!

Or they could send him to Google (lol).

I don't think shutting down webos had anything to do with it. In the long run it's a right move to focus more on software for HP. Obviously they had this vision in mind, or else they wouldn't have hired Apotheker in the first place.

That doesn't mean it was the right move. And the stock hit proved it.

I will not bwe surprised to find out that the short position on HPQ increased drastically today.

I looked at the day chart, and there was a huge selloff in the beginning of the day that sent it down, and down it stayed, which means that there are alot of shares being offered just above the closing price...

Shorters are, I believe, waiting at the ask for buyers (they are NOT allowed to sell into a bid). When the buyers dry up, the shorters will lower their sales offers, trailing it and down it will go again, if Im right.

I dont believe that this is the low, just a step to where it's going.

IMHO, of course.

How low do you think it will go?

If they stay on this course, I could see another $5-8 coming off the stock prices during the course of next week.

People view HP as a consumer and integrated business computing solutions provider. Strip them of the hardware, and all you have left is so-so software. They sold their software because it was part of an integrated package of servers/data centers. Who's going to buy their software without the hardware integration when there are better software options out there?

If the board doesn't realize this, they should be fired. If they are not, then the shareholders get what they deserve.

The sheer numbers are numbing. 156 million in volume. That is nearly double the average volume for HP shares prior to this announcement and sometimes triple.
Maybe I will wait till the shares are below 10.00 or less, wait for a big announcement, purchase the stocks with everything I have, sell it when it is ripe, then buy Webos for myself, open source of course.

What is amazing too is this. They are dumping the PC division because even though it is their biggest seller, it is not as profitable. My mom and many others that are not in the "mobile" mindset still need computers. Younger and business oriented types like the tablets. Remember, they are not substitutes for a PC just a mobile access point.
If HP implemented webos into the computer like they stated, it would have been a game changer. Everything connected, accessing computer via touchpad, via smartphone, it is endless.
I said it before... What a Marooon.

for the 12.5 Billion in lost value they could have bought Motorola Mobile........ just sayin' ;-)

As many have said, this is probably why they hired Leo...I hope they are happy with the way he is managing the transition of the company from manufacturer to only software/services+printers.

I wonder how the shareholder meeting is going to go?
Shareholder: "You lost $12B of our money, why?"
Board: "To make you more money...see it works like this, you divest, the stock tanks, ? , profit!"
Shareholder:"You're fired"

i lol'd

You would almost think that Apotheker is determined to do all that he can to sabotage and ruin anyone and everything associated with HP; the employees, the shareholders, the customers, the executives, the vendors, the developers, did I forgot anyone? So $23 Billion lost overnight ($12b in equity, $10b acquistion ocst, $1b webOS winddown cost) and counting, because who would want to do business with this circus act of a corporation? All of this bloodletting when they had a many assets that merely needed to be cultivated properly. At this point I'm still hoping we'll still get to see the TouchPad Go 7" see the light of day if and when the smoke clears and either Samsung or HTC come to the rescue of webOS loyalists. There's a HUGE opportunity in the 7" tablet segment.

$23 billion spent and lost in one day, and for what? Makes me think of the expression "its cheaper to keep her".

HI all,

Nice to know that all of Leo's stock that's held in HIS pension plan too a dive of at least 20% today!

Take care, Jay

I was going to buy a Touchpad 4g tablet as soon as it was released. A Pre3 or whatever other phone came next. Next year, I was going to buy a HP high-end laptop if they ever made a macbook air type laptop with WebOS. That is at least 2500.00 to HP from just me in the next year. It is how Apple is valued as high as they are. Consumers are a huge part of the United States economy and HP just gave up all of it. I really hope Leo gets ousted for this and I believe it could happen. I thought Ruby would get moved and he did.

I just don't get it, I just read a couple of articles on msnbc.com, even the shareholders are confused at hp latest moves. See http://www.msnbc.msn.com/id/44204783/ns/business-us_business/ "Hewlett-Packard’s bewildering strategy shift. Investors, analysts are scratching heads over tech giant’s plan to focus on services"

There is no doubt what hp did was wrong and anything they've done since acquiring webOS hasn't make any business sense and deserve all the losses coming to them. I do think in the end the manner how this played out will hit deeper into hp than the loss of us webOS fans.

I can't stop questioning how do you stop a product in demand with a bright future who have people not even on your payroll working so hard to improve it.

HP your ride on the cash flow will come to an end if you continue to do business like this. Could a 11 or 7 be in your future..an I'm not talking craps either.

Sounds like a good time to buy some HP stock. This decline is because of the PC announcement and has nothing to do with the unprofitable Webos business. I am sure if the current CEO was there before the buyout it would have never happened. Most investors could have seen that it was a bad investment and a huge gamble.

I read Derek giving a piece of his mind to HP...and I agree!

I am heartbroken for the storied Palm brand and for all the people working to make WebOS a true competitor in the mobile space.

I followed Palm for a long time. Had a Palm V that helped me through school. Even got a Palm Pre+ over a year ago which was my very first smartphone and eschewed the iphone because i saw the potential. I also was introduced to this site when Palm support could not adequately explain to me why my phone kept on "bing-bonging" on the touchstone.

HP even before the Palm acquisition was filled with a lot of scandals including CEO turnovers after another. I'm not just here to join the bandwagon because HP dropped the ball in not providing my dream device...it is just a piece of tech after all in the grand scheme of things.

I'm more upset at the fact that there is lack of integrity in all of this...from how they not only burned employees but also customers in their infinite lack of wisdom. I mean how stupid can the management that made this decision be...even if you shed what you thought you had no balls to handle...a) who is going to trust you now considering how you dumped all the loyal people like a sack of... and b) you basically overnight devalued your brand name not just with your new risky venture but by showing who you really care about...certainly not your customers or employees...

But as customers we can simply vote with our wallets by simply boycotting anything HP. But really again I feel for those whose living is impacted by all this and I don't mean just us Palm fanatics/supporters.

Palm blazed through the early days with their innovative mobile computing concepts. In 2009 they came up with something with real potential. They practically invented the smartphone. Sure others have done some interesting stuff in this area in recent years but deep down I was cheering for the underdog to pick up where they left off and have a second chance in spite of their past mistakes. That's why in spite of some reservations...I had placed my hope in HP's vision...it sounded decent. But clearly they did not come even close to "make things right."

I just still hope Palm comes back from the depths of despair for the sake of all those who poured their blood, sweat, and toil into it and come back with a vengence. Put it on some kickin' hardware and call it Palm Phoenix...Palm Unicorn....or even Palm Wrath that sends a print out of the old Palm logo to Leo's precious HP ePrint enabled printer so that he'll never forget!

HP...a case study of failing business management (and ethics) 101.

Palmology, you are right taking care for people and hopes on real technology. The problem is not HP ethics, it is stockholders and money ethics.

Nowadays. it is impossible to do a good product and make money for shareholders. Look Blackberry and Nokia. Bad, "me-too" products may damage manufacturer brands, and this is what happended with PCs for a long time.

So I strongly dissagre if someone looks to this as a silly decision. It´s simply about focus and changing stock volume from hands at a good price, for making money.

It is not about people...at least people that does not want to own stocks long hault.

But it makes this great community free from big monsters of the Olympo to become what it should be: people that still believes in the real value of technology. One day things will become sensible again, and we will have one or two devices in life...with upgrades and application HW modules. But, why more? Value (not greed) is good. Let me add a last example.

How many bikes you have had in life? How many times have you tunned your bike? Why phones are different? Not anylonger...unless you want to win a greedy race with your neighbour

marogael, you'll forgive me if i don't completely understand your response or if my rebuttal isn't exactly addressing your points...i haven't had my coffee.

i whole-heartedly agree that the mobile landscape is rapidly changing and there is so much involved that it isn't easy for a company to have a clear cut "win" in this space. i do believe though that there is room if you bring something unique and interesting that carved out a niche and i feel palm was headed towards that direction. granted competitors aren't going to make it easy for you but palm was at least wise to stay out of the patent feuds and continue to move forward to establish themselves.

what i am more calling HP out on is how bungled they handled this whole fiasco. look even Bestbuy one of their long time partners is flat out stopping to sell the Touchpad and doing the honorable thing and allow customers to return it within 60 days. That's "making things right."

we aren't talking about noble ideals here ...i'm not even commenting about HP's dubious new business strategy. But if you are talking about doing what's good for "share value" well...again HP's major retail partner is now saying they refuse to sell any more touchpads...you are sitting on tons of devices that no one with half a mind would want to purchase. HP communicated in such a poor way that said webos is dead even though now the middle managers are trying to stem the losses with their statements which i am disinclined to believe since there are no devices that are going to be made so it leaves the future in limbo. I mean this is no strategy what so ever.

If HP doesn't have the balls to take on the challenge well it is disappointing but fine leave it in good hands to transition to someone who will. And from shareholder's perspective it would have been smarter to at least cultivate options before just dumping it as if it were worthless. It's not...but now who is going to pick it up and so you are left with even more of an albatross. I mean this just is plain dumb.

So this isn't just about dream devices or people's jobs (the latter which I feel again is a serious ethical issue)...even if you were strictly thinking of this from a business/shareholder perspective...it does NOT maximize the value. You just made a bigger loss than it needed to be.

HP for so long kept their mouths shut when we were looking for some critical answers. Now they finally open it up and showed they had "Too Many Cards" and forgot how to walk.

First I would like to thank PreCentral for all the work that they have done to keep us updated on all the breaking news. For HP to fall 20% on a Friday and to be trading at the 2nd highest volume all day should shake up any shareholder in this company. Monday will probably more of the same and I don't think it will take long for the board to call an emergency meeting on the future leadership of this once great company. Somebody is going to have to take the axe on this one and I hope its Leo the cowardly lion. I don't think I'm alone in saying that I never had a good vibe from this guy. HP in a failing economy you are not looking like a good investment at this point. Investors will not care in what direction you plan to go, with the poor decisions you have made lately they all look to frantic and poorly executed for you to be a good investment... In the near future. (sorry I had to put that in there,lol. Oh, I would however pay to see Leo wearing a sandwich board that says "will work for food but do a piss poor job at it". I think there next big promo will be free shares of stock with any HP purchase.

well it was going to take alot more investment than they wanted to make webos competative but instead opt to risk losing billions on spinning off their pc division. yeah they are having some serious leadership issues......

Leo bought by competitor.. he destroyed everything that gave him anything... now it's time for that 'The most stupid CEO on earth' to step down.

I've been a Palm enthusiast since the beginning, and migrated to webOS as soon as the Pre Plus became available w/ Verizon. I've liked the platform better than any others out there, even without the application market that iOS and Android enjoy. I was eagerly awaiting the Pre 3, and have been holding off on an upgrade while doing so. Now that HP has dropped the ball, I am simply dropping HP. As much as I like WebOS, I'm not married to it, and I'm sure I will find another platform out there which I can live with happily. I'm not interested in finding out what they plan to do with WebOS, because whether HP realizes it or not, they nailed the WebOS coffin shut the other day, and nothing they do in the future will keep it from it's grave. My only question is whether to go with Windows Phone7 or Android. Waiting a little longer to see what is coming down the pike w/Microsoft's Mango and its multitasking capabilities seems reasonable.

As for firing Leo Apotheker, they can't get rid of him quickly enough as far as I'm concerned. I never did understand why HP never made a big advertising campaign of the WebOS as soon as they purchased it. They didn't need NEW hardware to demonstrate to the world just how wonderful the platform is. They simply needed to make some high quality spots showing people what they were missing by NOT having WebOS. After all, with their deep pockets, they should have been able to do what Palm couldn't. Then, after creating the desire, they could have expected their hardware to sell as well as the next iteration of the iphone. But, after their February announcement, they went into corporate hibernation, while every other phone maker continued to come out with the next latest and greatest gadget. So, fire the entire marketing division while you're at it.

At the rate the company is going, they won't need them anyway.