Reckon DXC's next "buy back" stop position is $29.8
10 replies (most recent on top)
The share price is 29.61 right now... At some point the dam will bust.
I wouldn't be surprised if the company is bought by a giant soon then broken up. If you still work for DXC start updating your resume because you'll either be "shaved" or you'll have to reapply for your job at a lower hourly rate... If you're a contractor, you'll be the first to go so start looking for a new job.
Don't kid yourselves. This has happened to much "healthier" companies in recent times.
@2tan Yeah I meant a dollar. Although the way the share price is going....!
@2uri - surely you meant to say 0.0575 of a dollar? IE 5 cents per share (as opposed to 19) - sorry to be pedantic.
Well yes, investors will run for the hills. I like you, think it may be too late, but I disagree that raises are not required - raises have to be a fundamental part of the turnaround.
Click this post UP - if you believe a raise after 7 years is better than night out on DXC.
Click this post DOWN - if you believe at night out on DXC is preferred to raise.
And now the stock is trading below $30 - and once the earnings call happens, I predict $25... #RomeisBurning
Dividend reduction of 75% would make the dividend worth 0.0575 of a cent per share (much lower than its competitors) which would ensure that the long-term DXC investors would move their portfolio out of DXC (if they haven't already), the speed up the company's demise.
Even 29 cents per share is looking dangerously close now. The value should be around 56 per share as a conservative estimate. So any under-value and figures below 40 eps is really saying "We don't have a clue what we're doing"
The whole people element and reward and recognition in DXC has been trodden on for too long and has resulted in a disjointed, demoralised and low productivity workforce. Even the newstarts want to leave! The spirit of the company has been severely damaged by over zealous cost cutting. It remains a good example of what happens to a company when it focussed entirely on cost-cutting at the expense of everything else, including most importantly ignoring your greatest asset: your staff.
So yes, DXC needs major restoration work. But before work can beging on streamlining its sales and delivery operating model and identifying what it wants to be. It needs to be careful in its language during communications and not use words flippantly that appear to show continued contempt for staff that simply reinforces the idea that there has been no change at all.
The leadership has to address the staff reward and recognition element. It doesn't have to be pay rises, but at least allow some basic rewards for a job well done, even if its take you and your partner for a meal for a job well done. Just something to start with to realise the importance and strength of feeling out there. It can then sort out its ridiculous need to micro-manage costs with levels of administration which has strangled effective delivery for too long. It has to wake up now or be archived. Personally, I feel its too late.
Reduce dividend by 75%, stop any buyback plans and hold his breath for 9 - 12 months whilst restoring some pride and honor in employees by treating with respect.
Focus on a retention program and internal promotions + 100% voluntary, global VR - some have just had enough, others deserve credit for making sure DXC got this far! Take solid performers with appropriate experience (those who are happy to do so) and place in charge. Take out any manager in place by right, not merit - probably a large figure!
Attract good sales people with industry leading incentives - that pay out. Sweep out many who hold security roles, but cannot talk to a customer, individuals who spend a majority of time and effort scrambling round to get someone to do a pitch they 'should' be able to deliver!" these types bug the fek out of me!
After 9 - 12 months the stock price maybe in gutter, but DXC may start winning business again. Then the pension funds can buy back into a real story.
@11clXrQT-1pqy It's not healthy outlook for sure and companies reputation is in tatters especially its horrid treatment of staff, ex-staff WFR and its clients under leadership of Lawrie.
Still got chance to recover - if the new Mike does rapid change from top to bottom and to instill clearly what is DXC's IP and what expert services it can offer to its clients ?
Also it needs to invest strongly long term in its employees rather than short gain on Wallstreet.
The share price continues to tank because Mike L's idea were proved to have failed with his replacement having no new ideas as yet, no apparent strategy to stem the deepening damage.
The longer he waits to reveal his ideas to grow the business (does he have any?), the more the investors lose patience and withdraw.
Meanwhile, the DXC business is still a desert because in true marketting style, no-one will employ an unknown, untested, made up nonsense 3 letter word
It will be written up in textbooks one day
Why don't you put your money in something reasonable and if you think it's going to go up then you should be buying puts you should be buying options to protect your investment if it goes down
Time to buy, won’t get a chance at same price again. It’s at life time low and not much downside left if compared with P/E ratio. It will be trading at mid $40s level by year end if not above $50.