Hope you all have your webcast lingo bingo cards ready……..
24 replies (most recent on top)
@w0 I keep expecting "strategery".
Q4 Word Bingo Game is LIVE
green shoots, seeds of success, frictionless, think differently, AI AI AI, tech powerhouse, synergies, north star, move the needle, best-in-class, value, headwinds,, flywheel, AI, AI, AI.
NEW words for the gamers: Chinese child labor, Ch 11, liquidity, strategic options, covenant compliance, cash preservation
@gj You think there has to be a cause in effect for actions form management :)
@ct Blue Horseshoe says enterprise value is nonsense, especially if it includes goodwill. Its just another name for net assets, which is just another name for equity.
@gd how would that affect 2025?
@fr Maybe the winter storm hitting the regions will be an excuse for lack of employees being able to come into the office to contribute to the bottom line.
I just took in the lawn chairs for the amount of headwinds excuses we're about to have.
Blue Horseshoe hates the Java U.I. 🤮
@cg When a enterprise is valued by credit agencies they can't use market value as a way to measure the company. One measurement that is used is Enterprise value as well as many other measurements such as history of paying off debt, projected turn over of clients, and many other measurements.
Right now one of the largest risks that Xerox has is being continue to receive credit downgrades which will affect future debt and could even effect current debts and bonds based upon how the debts and bonds are structured.
@cg Enterprise Value is a common term used in Investing circles.
https://www.investopedia.com/terms/e/enterprisevalue.asp
What Is Enterprise Value (EV)?
Enterprise value (EV) measures a company’s total value. Its calculation includes not only the market capitalization of a company but also short-term and long-term debt, as well as any cash or cash equivalents on the company’s balance sheet. It is often used as a more comprehensive alternative to market capitalization when valuing a company.
@OP they will "have to make some difficult decisions"
@ay Enterprise value is not a thing.
@at Not equity, Enterprise Value.
If you take the value of all the property, inventory, cash, copper wire in the walls, and GOODWILL BOOK VALUE, that is the ENTERPRISE VALUE; it is currently a little bit more higher than the debt.
When the Goodwill gets written down next week, it will dip below that, and the company is worth more dead than alive. The market value is only $300 mil, not that, that actual value of all the assets the company holds.
@a7 synergies = layoffs
@a5 the equity value has been less than debt for years. I swear you guys post without understanding a word of it. The fact that GW may be written off does not change the fact that it has no value on the balance sheet. True analysts don’t even count old GW as an asset.
Macro economy, the street loves us.
Took me a year and roughly 200 applications but I’m finally in the running for 2 excellent positions.
Thanks good will guy... what has thu java guy got to say about year end please...
"rightsizing" "redundancies"
@a7 "We are adjusting staffing levels to meet strategic goals." or "We are ensuring that staffing levels match regional skills"
"failed to execute" or "did not execute"
They won't use the words "layoffs" or "RIF" but they will intimate that happening on the call.
Maybe the new CFO is not a butt kissing hump like the last 2 and will actually speak English. I do have $100 on headwinds though.
Goodwill Guy here.
Look for Goodwill write down of over $1 Billion. When this happens, the enterprise value will drop below the total debt load. This will trigger a credit downgrade and we will be at CCC or CCC- by 2/1/26. We'll also see what the FCF and cash on hand is, and that will give us a good gauge of how much runway is left.
Keep in mind that Q4 is typically the best earnings, so it gets bumpier here on out for the rest of the year. Q4 is the one quarter where they usually make money, so it it's flat or down vs last year, with additions and additional debt, that is really bad.