What is everyone planning to do with their OT stocks (from ESPP or other means). Sell? Hold? It is at a much better price than what is was before. so just sell and invest in some better company, or could this go higher than what it is currently. When OT slowly divests the non-core portions, would it lead to reduction in stock value?
7 replies (most recent on top)
@v9 OpenText will never grow organically. No one is buying the pig no matter how much lipstick you put on it.
There is no substantive growth being achieved by OT that would support the stock price increasing by major leaps based on company performance. There are no product plans that would accelerate growth despite what the CPO would lead you to believe. The content business cannot compete against Box and other major players. The company’s only real strategy is to offload dead weight and eventually sell itself.
@k9 they are forced to per their employment contracts.
Take a look at the insider trading some of the Executives have already offloaded all their stock!
General analyst advice at the moment is hold. It used to be buy. The next step will be to sell.
Focusing on stock price instead of market performance, which takes care of stock price itself, is what has brought us here and will ultimately ruin it. It's short-term thinking with long-term consequences.
This is why companies like valvE should remain private. You know the old joke about a horse designed by committee gets you an elephant? That's what being beholden to your shareholders is.
One we won't get a top rated CEO,
Two even if we got Satya Nadella or Tim Cook, the share price would move maybe 10% at most.
The company has a lot of debt that needs to be serviced in next couple of years, hence why they are looking to sell 25% of the business.
If you were a successful executive, would you join OpenText?
I think this whole "shrink to grow" will hurt the sharprice the next 2 years. It's ok as a Dividend paying stock, last I check it was around 3.3%.
Anyway what do I know or anyone know, it could be $25 this time next month or $40, who knows.
Depends on who the CEO is. A big name could drive the price to 60, an internal hire could crash it to ten. Personally I wouldn't go near OT stock