Once again the stock has fallen off the map, it was a t a yearly low of $119 earlier today and is not moving out of 120 range - so what next for layoffs? The market is down in general but it's hurting us more than others due to our do-nothing executive weather team. How long before they do the next round???
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@ex Agree. This is maybe the best post I have seen on this board. Facts, not complaints and misery. Most of us read this forum for entertainment. There is not much that is serious on here. Downvotes here I come!!
@bx why would anyone downvote this post? Because it takes away from the woe-is-me and this place su-ks narrative. Yes our executives can do a lot better, so can we all. Do we really think our executives want to fail? Good God, this board is depressing.
Just sad to see our stock where it is.
Good point!
Agreed. Beating the number each quarter is the way out (or rather up)!
Facts-We are priced roughly at 11x EBITDA and we are in decent shape from a debt and free cash flow perspective.. At 10X EBITDA stock is low 100’s. Cloud fluent VARS were selling at 10 to 12 X EBITDA before the AI bo-m. NSIT is currently trading at 8X roughly, so CDW is doing a lot better than they are. TD Synnex is trading at 11.5 X. Sort of crazy a distributor is worth more than our value added business- but they are an execution machine. According to the chat-bots Accenture is trading at around 11X as well. When you look at the entire segment, the multiples have come way down. That is a serious headwind, whether you like our executive team or not. It’s not just us. And it also explains why the board is patient with Chris Leahy. She is not really under performing the market if you think about it this way . Net is CDW stock can go a lot lower and should probably be lower now unless we start beating the market significantly.
@bq
Analysts have a 12 month target of like $170 currently from current data and they are showing a range of like $140 to 240 (i'm rounding and going off what I remember seeing earlier).
Analysts might be right with the low end of the range and maybe the 12 month target since they crunch all the #'s and also look at industry and investor sentiment.
IMO $140-$170 is more realistic if quarterly earnings can beat quarter after quarter after quarter like in the past (might result from all the cost cutting) but jury is out on how customers and potential customers react to the new GTM and ripping/replacing AM's they had. A lot already complain about the AR department and I believe there was a lapse in actually processing payments for awhile (this is kind of crazy in itself).
To gain traction and get climbing again...need to stack quarter after quarter beats to get back on track with investors but there is a growth factor in play as well which basically halted from missing earning for 4+ quarters in a row.
A chunk of shares are owned by Vanguard, Black Rock, and State Street then others as well (also ETF's, funds, etc). The stock buybacks and dividends help with these companies still holding shares but probably for diversification since CDW is still doing ok compared to peers.
I'm no expert but there are a ton of other places to park your $ that provide dividends and are growing. If everything works out and gets back the earnings beats of the past...could be years to start sniffing where the stock was last year (4 years to go from 120 to 240 the last go round).
If you have shares and don't need the $....let it sit or sell strategically to lower your capital gains (if you got in below current price)...if not...hold and collect dividends and hope for a turnaround. Hope is customers don't shift any business to competitors because their AM's changed and they potentially increase business if they realigned to a better AM.
Where do you think our stock should be priced at?
@OP
Market isn't down in general. CDW missed the boat on being an integrator for AI with the companies building DC's partnering directly with MFG's instead of box pushers/VAR's.
The acquisitions and hope for "services" to be the driver of future growth pushed these failed leaders to acquire instead of building organically.
CL just ruined the handoff to her (covid covered up a lot of issues as there was artificial demand plus WFH initiatives. What really has C level or VP level done to address issues besides layoffs, outsourcing, and cutting pay? Literally just spending money on wasted acquisitions with no plan, subscribing to Saleforce so our CRM is dependent on a company that'll raise costs as thier stock sinks as well, and cut Christmas bonuses, etc etc.
How these people are still in charge is beyond me. Directors and managers don't speak up either for fear of losing thier jobs or not getting promoted.
Too many people in positions they shouldn't be in due to favoritism and that helped the downfall.
The Olympics will help though (not).
There are a ton of people in director level and above (and some managers) that could care less for individuals on their teams (all talk and fakeness).
Lots of high performers leaving on thier own accord after the "new" gtm and BS with SF.
Investors use this site and others like reddit to see what employees feel and mostly everything is negative.
Looking to dump my shares while I'm still in the green BUT....you're right and we're all wondering now much lower shares will drop.
@a1 If she does have one in all likelihood she bought it at Best Buy.
JD’s company is hiring. For those of you that knew him, he was a man of integrity that put customers and coworkers on the same level and would make other changes before cutting staff. Look us up!
I wonder if they even read those paekeon surveys or if that’s just a checkbox and they all get deleted. I don’t think CL even has a laptop out there in Newport Beach