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To: ghost of stonewall jackson
although i think sorkin leans left, hard to argue with his analysis here. HPQ was not in better shape when fiorina left than when she started. that’s the bottom line. also, i don’t think it DQ’s her

Not a Fiorina fan, but the analysis should be against other tech companies in the same business to be a fair analysis. Also they split into Agilent and HP, sold the consulting business to IBM and merged with Compaq so you probably need to look at market cap. as a comparison tool.

As near as I can tell on a quick search she started with a market cap of $106B, That went down to $62B in 2001 (spin off of Agilent and dot com bubble not too bad a loss). She left in 2005 60B market cap which is low considering they acquired Compaq over that time. However it set the stage for HP to become #1 in PCs in the ensuing Hurd years.

She gets blamed for about 30000 layoffs, but Hurd cut 15000 or so more positions when he came in, so the worst you could say is that Carly was too soft as a CEO.

I've seen one internet article that says she increased revenues at HP each year of her tenure except 2001. So was she a perfect CEO no, but there are very few perfect CEOs around. It's hard to run a company. Her successor Hurd made acquisitions that cost more than the market cap the company had when he left. So was he a great CEO? Was he significantly better than Carly?

This is what makes Donald Trump the better candidate. He took over his father's business and turned it into a multibillion dollar enterprise. He had to deal with the tough regulations the Libs put in place in the democratic strongholds in which he worked. He knows first hand what risking your own money and being successful is all about. Carly, and the rest of the Republican field only know how to risk other people's money. (Sorry had to get a plug in, couldn't resist)

29 posted on 08/19/2015 12:44:02 AM PDT by stig
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To: stig
He knows first hand what risking your own money and being successful is all about. Carly, and the rest of the Republican field only know how to risk other people's money.

There is no doubt that Donald has been very successful over the years, even if not "self-made." But I just want to make an adjustment to the "risking his own money" part.

The Real Estate Income Trust / REITs and public Resorts and Gaming enterprises to which he lent "full faith and credit" of his name and celebrity (not his money) in exchange for a minimum of 25% stake (more in some, including majority control) in the enterprise and the royalties on the use of Trump's name, usually traded on the market under symbols TRMP and DJT.

Basically, ever the showman, he was selling Trump's name as the attraction of "success." His most successful "investment" was lending of the use of his celebrity name, in exchange for OPM (Other People's Money) and huge amounts of collateralized corporate debt, i.e., "junk bond" grade CDOs. As a matter of fact, he used some of that debt from a public company to buy his own casino, Trump Castle, and assuming its/his debt.

Most of these joint ventures / partnerships, including all public/listed ones, later found themselves in at least one bankruptcy but didn't cost him any money or entailed any financial risk on his part — some legal entanglements, sure, but that's what good contract lawyers and agreements are for — actually, they brought hundreds of millions of dollars to The Donald, without him "risking his own money" while possibly "risking" but also taking more than full advantage of his business reputation.

As a matter of fact, I believe he is still in a lawsuit against Carl Icahn, trying to remove his own name from Trump Plaza Hotel and Casino and Trump Taj Mahal, the last of Resorts / Casinos still bearing his name or have anything to do with him — his remaining 10% ownership and use-of-name royalties are contested in bankruptcy court — and he denies control which is technically and legally true. There is a reason he has not been involved with the Resorts and Gaming Industry for a while (except outstanding lawsuits) - the people won't do business with him, let alone use his name for the property again.

As far as I know, he didn't do anything illegal (same way as Mitt Romney, who wasn't a "businessman" as many stated but rather a manager of successful consulting and investment company didn't in 2012) but claiming that overwhelming majority of his fortune was made due to "risking his own money" is simply inaccurate. Like most before him, he made his fortune old-fashioned way — with good lawyers and OPM... not that there is anything wrong with that, as Jerry Seinfeld used to remind us.

30 posted on 08/19/2015 1:16:49 PM PDT by CutePuppy (If you don't ask the right questions you may not get the right answers)
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