When Raul took over the share price was $25, under Raul went down to $20, has since gone upto $21. With the share price falling why are they doing buybacks?, let the price fall to $15 before doing a buyback. What a waste of $1Billion when they could buy the same shares for $600 Million. Never mind they running this ponzi scheme to suit themselves.
23 replies (most recent on top)
Raul is just repeating Mikey, and everyone knows he clueless, worse still he has installed 2 sets of cronies gangs and there's more cronies to come.Sad state of affairs.
DXC's turnaround story remains in its early stages, with several new executives recently joining (more planned) and $250M of additional restructuring costs expected in FY 25. The timing is unfortunate, as we see current issues hampering DXC's long-term business outlook as IT budgets shift toward transformational projects (like GenAI) with established service providers as DXC loses share.
I’d love to see the faces of the useless UK VP’s. They were crying at $25. Now it’s $15. The muppets have stayed thinking they will cash in thier ray’s one day. So so glad to be out. Prediction: single digit $ share price by June.
Even the Analysts are down saying $14, so much for million $ analysts and VPs on millions the average Joe op got the price right months ago.
What a joke Raul and these VPs are that the analysts are calling them "consistent negative growth" and the share price is on a low of 5x earnings.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target by $5 to $14, 5x our FY 25 (Mar.) EPS view, below peers and DXC's five-year average (~7x) on consistent negative growth.
Whoever started this thread was spot on, down to 15USD per share now, down 45% since Raul took over in 5 months.
Staggering and further to go, start buying at 12USD.
The ex Accenture gang started these buybacks to try and inflate thier pay via share options, clearly hasn't worked over 4 years. The stock is currently $19.
They can't keep on buying shares wasting billions at the same time telling staff there no money for pay.
You incompetents you had your day. The stock is worth $15 why are you paying $20+.
Raul did say buybacks are under review, let's hope the id--ts realize they are literally burning cash.
This buy back is the biggest scandal in DXC, they are knowingly spending company money billions of $$$$$$$$$ on something they can buy for less. The last 5 years has proved it. Total incompetents needs to stop!!!!
"Indeed, the stock holds the poor distinction of being one of the worst-performing current constituents of the S&P 500 Index (SP500) over the last 5-years, losing more than three-quarters of its value."
@9oii+1rilEU6a the execs sell shares because they are awarded bonuses in them.
They don't choose when to sell them because they could be accused of insider trading, so they just make a planned sale on the same dates every year (for the CEO with his big pile its usually quarterly but the others maybe not so)
Again, buying shares, they won't do that because of insider trading...
The only possibly significant thing you can say is that they don't hold onto any shares - they are all gone in one FY.
Its not relevant to them as the board aren't anything like controlling interests in the company. Its not like say Tesla or Facebook
JP Morgan saying DXC shares are rated as sell not buy back.
DXC Technology (NYSE:DXC) gives off strong “value trap” vibes. Shares in the IT services company may at first seem appealing because of a low valuation (6.7 times forward earnings).
However, DXC stock has performed poorly in recent years. Largely, because of disappointment about a turnaround for the company has yet to arrive.
Of course, a delayed turnaround doesn’t mean there’s zero chance of an eventual turnover. Still, that didn’t stop analysts at JP Morgan from downgrading DXC back in January, from “neutral” (equivalent to “hold) to “underweight” (equivalent to “sell”).
With the VP Deckleman selling shares proves they don't believe in the shares is valuable. They dont think they are undervalued, but will fall further, why would you sell an assets that's going up in price?
The buybacks should be stopped immediately.
Over the past year, the insider has sold a total of 111,204 shares of DXC Technology Co and has not made any purchases of the stock. The recent sale further contributes to the trend observed over the past year, where there have been no insider buys but two insider sells for the company.
Shares $20 now and still falling.
The Greedy barstewards, the share price keeps dropping yet they keep the buyback to mask their site running of the company and so they can benefit.
They have spent $6 billion dollars on this loss. Total manipulation. Then they say they can't pay the employees.
You can't make this stuff up, how are they in charge of running this company. They are literally throwing money away.
STOP THIS DODGY BUYBACK UNTIL THE SHARES FALL BELOW $17 YOU WILL SAVE $300 MILLION.
@6bzy+1rilEU6a The buybacks are supposed to stabilize the earnings per share which is constantly declining due to poor running of the company. The management use company funds to do buy backs to try and prop up the share price.
Yes it only benefits the execs as they get paid in shares, the shares themselves are in freefall. Why would you buy billions of shares and keep making a loss on them????
Since Raul has taken over they have fallen another 20% as the market doesn't have confidence in the way his running things.
He has made no announcements, no strategy, no direction, and there's no change, its decline as usual with the same incompetent leaders at the top.
So are you saying that literally the only reason for the buy backs is to trigger exec bonuses?
There isn't any other reason this can be for?
I understand how EPS is calculated and that its the metric for exec bonuses but surely it can't be such a blatant money grab?
Or are the institutional investors (aka the actual people who own DXC) just glad to be regularly shot of chunks of DXC? Private deals don't tend to drive the price down as you say... so its some exit and the rest not too damaged by it.
For this reason you can see that if managements goal is to prop up the stock price then buy backs arent the way to go
Intent is to simply retire shares (which is what happens to them after a buyback). That way you prop up the EPS numbers (by reducing number of shares the PS - per share number drops so covers the fact the E (arnings) number is stagnant). Exec bonuses are all tied to that simple target - keep EPS stable or slightly rising each quarter. Fact they've spent > $6B doing this, and the total market cap is now under $4B shows how sc--wed this approach is, but hey the VPs get their bonus each year!
@5zff+1rilEU6a Well I'm guessing you dont own enough stock for DXC to bother with you. After all retail investors only own something like 5% of the shares outstanding. They're probably hitting the big guys like Investco or Vangard. These guys need to sell DXC stock anyways since their funds are market cap weighted and DXC's market cap has been falling. So why not sell a big block to DXC and get a fixed price vs sell on the open market where there's not much volume.
Whose shares are they buying back because I've never seen anyone breeze in with an offer for mine? To be fair they were about $75 a share when I got them, so I'd be getting about 35 cents on the dollar ... a great deal there. Still might be sensible to sell out and take what little value is left before the latest round of re-strategizing and re-organisation drives the price down to $12 a share. Perhaps Raul could start promoting a new line of MaDGa apparel so we can blitz a Make DXC Great Again campaign.
@4ojs+1rilEU6a sorry but thats not how it works buy backs are a distribution of profits. Therefore they already paid taxes on that money in the U.S theres also a 1% tax leavied on buybacks aswell.
@4zck+1rilEU6a It's true that Buy backs have lowered the market cap but that doesn't change the fact that this company is valued based off of its assets not its earnings. DXC Buying a share at 1.18x book value means that for every $1 spent repurchasing shares book value pershare falls by 18%. Because of this premium the share price falls faster than if DXC had just held the cash. It's also true that this could get paid out in a dividend but in those cases the stock typically falls at an equivalent amount to the per share dividend payment.
For this reason you can see that if managments goal is to prop up the stock price then but backs arent the way to go. If you're unconvinced look at it this way something like 90% of DXC's stock is owned by institutions yet DXC repurchases 10% of the shares outstanding a quarter and the stock price falls. So what is going in here? Well likely DXC is repurchasing shares in private market transactions. This means that theres not an immediate effect on DXC's share price. If the goal was to bid up the price of the stock presumably they'd continue buying stock on the open market and bid up the price that way. But they aren't doing that.
If DXC hadn't done the buybacks it would now have $3billion in the bank. What good position that would be.
@1jzg+1rilEU6a If not doing buybacks would leave more assets on the balance sheet then the share price would be higher but it isnt, if not doing the share price meant it was lower they could buy back the whole company for a lot less with the $3b.
Either way the fact is VPs are trying the buybacks to prop up the share price as VPs get paid on shares, but reality is the market knows they can't grow the company so it's managed decline and the share price declines.
Just think they have bought a third of the company in the last 3 years, but the earnings have fallen that's disastrous.
The shareholders have also recieved nothing in dividends and losses in capital.
A very badly run company with the CEO who are good at promising but not delivering, the main purpose of the company is running it for the VPs to drain the money in to their banks, a limited lifetime left.
If dxc had $3bn in the bank they'd be either leaned on by the shareholders to pay it as dividends or be subject to a hostile takeover.
They'd also have had to declare it as profit and been taxed on it.
Dxc goes to great lengths to financially engineer itself. Someone else on here was saying about the number of subsidiaries it has... There are lots of financial reasons to have a mega complex corporate financial structure, being difficult to understand actually being one of them!
Because the stock probably won't go to $15 without share buybacks. This maybe hard to belive but share buy backs are part of the reason why the stock price has fallen. Investors value this thing at a slight premium to book value per share (assets-liabilites / shares outstanding). This is essentially the money left over per share if the buisness was sold for the price of its assets. When you repurchase shares spend money, an asset, to reduce shares outstanding. Because DXC has been buying back shares at a premium to book value then book value per share the asset part of the equation falls faster than the shares outstanding. And since the investors really only care about how much money will be leftover when DXC is liquidated all they see is a shrinking pile of cash and so the stock falls. If DXC had just been building up a pile of cash then chances are the stock would be significantly higher because theyd have something like $3 Billion more sitting in the bank.
They ARE greedy but they ARE NOT stupid. They know EXACTLY what they are doing. DXC is an airplane at 20,000 feet with ALL ENGINES OUT at this point....just looking for a place to LAND and not CRASH!!... WE SHALL SEE!!!
it's a common strategy going back to Mike 1, cause share price to crash then buyback, have it sold at regular intervals so you can deny insider trading
Eventhough there are multitude of internal systems and processes creating a huge waste of time for sales and delivery folks, there is zero budget to fix any of these problems / simplifying the systems. Changes both feature and functionality are in the queue for want of resources. .. And here you go that they are busy propping up the EPS but not investing where it is badly needed.
its all about timings - buybacks have to be spread over a time period anyway and the VPs are not stupid, given their bonus is tied to EPS only they have no idea how to increase revenue and profit so all the focus is on keeping the cash flow positive so they can spend it on retiring the shares to keep EPS stable or even slightly rising, and the stock price prevented from collapsing although the market cap is well down - used to be $5-6B now its under $4B.