So what does this mean?
47 replies (most recent on top)
@ww yeah moved for every employee 😘
You mean every employee in the UK?
@vy moved it to accommodate the non important UK staff
@vx Oh, that is super sus! They called a company wide meeting and they didn't have their S#!% together to run it on time.
@vw
moved until tomorrow 10:30
@vv I thought that meeting was today?
@s9
24 hours away from "all hands on deck" meeting and it is awfully quiet here.
Stock is up with the squeeze, who is buying?
Not sure what you mean by manual, but LXK certainly knows who owes them money.
@hv Not sure why you think Lexmark back office is better. It's smaller, has some off the shelf modern components, but it relies on manual billing. Xerox has a larger customer base. Guess what happens when you try to move that larger customer base to a new manual billing process?
@qv who did you buy the bridge from? You are not smart.
@qv It is correct. Volume is a 2-3mm average per day, 1/3 of the total float was shorted, and we shot to 60 million shares in a day.
It is, and soon to be, was, a short squeeze. There is no good news form the Q1 numbers, and the price is going to where is belongs eventually, maybe tomorrow, maybe in a week or two, maybe in a month.
XRX loses money every single day, and has for years. Besides firing 10K-12K people, they have no other levers to pull. Even that won't work anymore, as they have outspent their ability to fire people to save enough money to survive.
If you have a different reason this garbage doubled in two weeks, share it with us genius.
You seem very smart, please share your thoughts with us.
@kh good info …cheers for that
@j6 short investors bet the stock will decline. To make that trade, they borrow shares from a broker, sell them, buy them back at a later date, and return them making money on the decline. If enough short investors have to cover their positions at the same time, and XRX had a lot of them, the buys to return the shares to the brokers can drive the stock up for a few days. Shorts covering their positions.
@j6 Yup. It's a short squeeze. Volume was 60 million on 4/30, and dropped to 15 million on Friday. As some shorts cover, and buy stock, and the squeeze loses momentum, it will collapse to where it started.
There was no real good news on the call, nothing has changed. XRX is still marching towards bankruptcy.
@hv
LP came from ICAN'T not Icahn!
@e7 I am not understanding the short stuff so forgive me etc - but basically you are saying the sky rocketing of the share is zero related to the company actually improving- as the numbers released all seem poor. Q1 was basically just another poor quarter and the stock price is not a reflection of that. Do i understand you correctly?
@gb This!
LP isn’t a Xerox lifer. He came in with the Icahn crew. What he’s seen is that “Xerox” business structure and management processes won’t get the company out of this situation. The Lexmark cost base and back office operations are superior to Xerox.
Lexmark office devices cost much less than Xerox to manufacture (given Xerox was buying in from a third party)
So Lexmark management and back office have a bigger presence in the new org and rightly so. The oft quoted “ insanity is repeating the same mistakes and expecting different results” applies here.
That’s what LP’s org design was when he was leading the integration, SB was just the mouthpiece.
What’s missing is the revolution to non print revenues and profit. Yes there’s IT services and Digital Services but are they too little too late. Digital Services are really scanning and printed mail dressed up in shiny clothes. IT services is a real business but acquired, nothing to do with the Xerox “brand”
@g6 Lexmark was bought to “reinvent” (Rescue) Xerox. It was the unwritten reason for purchasing Lexmark. Now for Lexmark to continue to remove driftwood (Legacy Xerox) which is creating a dam that needs to be cleared soon then later so that we can get the cash flowing as soon as possible.
I have no idea where this is all going but what I heard today was kind of encouraging, despite all that you read about it being one foot in the grave. I will note it's all Lexmark Lexmark Lexmark. The call leaders, processes, ERP/CRM, acronyms, terms, nomenclature, hardware. It's all Lexmark. The only thing Xerox to stick around will be XDM and some form of XWS, it sounds like. They rebadged (from HCL) all the Analysts in US and Canada, but are actively working vrif's. It's a weird time. Do more with less is back. That was the worst Xerox mantra in my 26 years
GG here. Don't listen to me. I talk a big game, like I know something, but I'm really a giant p-d smacker.
@fb Yeah, true, but it's quiet and secretive.
Hiring a Turnaround Guy as CEO announces to the world they failed, and are throwing their hands up in surrender. They don't have the guts to admit they were wrong, they just blame others for not executing on the "plan."
@ed SB was not quick. It was overdue. He was allowed to stay in that seat too long.
@bb merit increases? You can’t be serious. About to ramp up the irifs big time.
@eb they have had many turnaround specialists billing them over the last 5 years A real one won’t touch us because they don’t want to be the one working the turnaround when the money runs out.
@eb GG here.
If they brought in a turnaround guy, that would be admitting their own turnaround failed. Also, they would have to do a search, spend money, time, etc. SB got tossed pretty quickly, so there was no real plan, there never was.
Canning SB, and JB fleeing are fine, they were expendable, everyone is.
What isn't OK, for the board, is to admit that the concept they signed off on has failed.
@ea
Thanks GG, that makes sense. If there are unable to borrow, that is an issue.
I do believe at this point, they will drive the wheels off.
One question that I have not see mentioned is, if Xerox was so focused on saving the Company, why not bring in a Corporate Turnaround specialist instead of LP?
He has been there during all of this, what does he bring to the table besides his legal side?
@e9 GG here, they have $600 mm in cash, lose money every day, and can't borrow another dime.
I don't know if it's 3 months, or Monday, but it is happening in 2027 when S&P is modeling default, or sooner. I think sooner.
The real decider of if, and when, this happens, are the vendors. They are considered 'Unsecured Lenders' and are at the back of the line to get paid in CH11. When their risk tolerance runs out, it's over. The Board and EC don't decide when this happens, the vendors do. When they pull credit, XRX can't source on NET terms, and have to pay cash on the barrel head for everything they need at the time of purchase.
My gut says summer/fall 2026.
@e7
Goodwill Guy: Do you see chapter 11 within 3 months or did yesterdays call indicate sooner rather than later?
@e7 The 10 million short share jump happened after earnings.
Goodwill Guy here.
https://fintel.io/ss/us/xrx
The dark pools have upped their short position by about 10 million shares, to about 16.5 million shares, and there is a total of ~47 million shares currently sold short.
Anybody can sell short, what is telling is this bump is in off market dark pools; that is big, institutional money. You or I don't have access to those pools, that is reserved for big players.
There was no real good news yesterday. They are losing money faster than expected, margins are shrinking, and Q1 cash flow was negative -$165 million. So ~40% of that 405 Million from the JV was evaporated in the last 2 months keeping the lights on.
I no longer expect a Goodwill write down to happen; that would happen in the course of normal business. A goodwill write down, or massive (8-10K) RIF would be called for and they are not going to do it.
EC will coast along until the wheels come off. S&P is predicting that will happen in 2027:
https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3524238
CH11 IS the Goodwill adjustment.
Only one or two off you seem to know the stock price has zero impact on XRX ability to make it through the summer. At $1, $2, or $3 no cash comes in. You’re done and apparently have very little to offer a new employer. I suspect most of you are offshore or in admin centers.
I am at the point we’re all you people deserve what you get by this point.
Bad decisions are a dime a dozen here.
And snide remarks about anything to help people are ridiculed immediately.
I stand by my comments and will sleep just great
Have fun, it should be interesting.
Soooo...no merit increases and more layoffs coming on the May 4th meeting?
Now guys, don’t worry. Goodwill Guy hasn’t spoken in a while. He will be on here shortly to tell us that the Goodwill will be announced on Monday and that the stock will fall below $.50. 😆
But…but….i thought the stock was going to be back at a $1 by end of today? How could so many people be wrong? My confidence is shook in this site.
Legacy one more time!!!!!!!!!!!!!!!!!
@aq Has anyone asked their manager yet about merit increases? My manager has been dodging the question. I already know the answer will be NO.
If someone says Legacy one more time...
@OP pump n dump. Looking at the headline wall street reacts. Share price jumps. Ok, but story stays the same… xerox lost money for 1. For 2 they still have mountains of debt. For 3 is it free cash flow when you are not paying your bills on time and have trash credit? Lastly lexmark propped up the number. Legacy business shrunk. Again. Lexmark will not be able to outrun that forever. LP is not there to revive this thing. Remember that. He is there to shine it up, prop it up and sell off parts.