Hewlett-Packard's (HPQ) Hurd interviewed by Jim Cramer

When it comes to Hewlett-Packard Co.'s (NYSE: HPQ) recent performance, it's hard to give the company bad marks in any area. From what I've seen, CEO Mark Hurd has turned the company around in most aspects, providing investors not only with growth every quarter but with market share leads in many of its business segments. In other words, HP is hitting on all cylinders under "transformational" CEO Hurd than at any other time in the last decade.

HP is beating Dell and others in the PC segment and from its direct and retail (and corporate) presence, it may continue that charge long into 2008 unless Dell comes up with something substantial to grab share back. How did Hurd do it? Easy -- he's an operations guy with a large knack for fundamentals and logisticsand it took just that to transform HP back from where it had been under former CEO Carly Fiorina. Fiorian is often credited for setting up HP for its current success, but I don't see it that way at all, regardless of her take (which I've read). HP's current success is all Hurd.

Market screamer Jim Cramer interviewed Hurd recently, and his answers to what HP has done under his guidance sounds completely appropriate: focus on the fundamentals, work on the cost structure and product innovation. Additionally, 65% of HP's revenue is outside the U.S. (and the U.S. is already strong for the company), and Hurd pointed to strong growth in mobility (laptop PCs). HP's consumer laptop lineup, in my estimation, has one of the most stylish designs combined with competitive prices and retail availability almost everywhere.

Want more proof that Hurd knows what he's talking about? When asked about PC market differentiation, he answered like this: design, service, support, features and innovation. Notice that "design" was mentioned first. Consumers buy design before all else, right? Perhaps HP is taking a page from Apple, Inc.'s (NASDAQ: AAPL) product design playbook, and having seen HP's recent consumer laptops, I think this is the case. With HPQ being up 20% so far in 2007, where does it sit in your portfolio?