especially the biggest investors Blackrock and Vanguard.
5 replies (most recent on top)
Blackrock and Vanguard hasn't lost 600m , the people who invest in those funds lost it, So now Mikey , Blackrock and Vanguards boards are screwing more people of there hard earned money.
Peter: Mike, I know this is your first time in the Den. But why were you late?
Mike: Well, I had some cross-wind challenges outside and some deals that I just couldn't get signed in time to get the figures on the board.
Peter: (shaking head) It doesn't look good for a first impression does it?
Mike: Well as I said we had a...
Peter: No, no. Stop. I've listened patiently to you and now you need to listen to ME. Let me tell you where I am at. I've looked at your plans, if we can call them plans. Your EPS was revised down and still missed the analyst predictions?
Mike: Yes.
Peter: Your net income was down $0.61 per share from $0.78 this time last year and you think your non-gap EPS will be between $7.00 and $7.75 even though you failed on the last one? Where are you getting these figures from?
Mike: Paul
Peter: Paul?
Mike: He's my finance guy
Peter: So where is he getting them from?
Mike Shrugs.
"Peter isn't impressed with the CEO's lack of knowledge and is concerned that he has not come prepared"
Peter: Your costs are growing and you keep lowering your projections. In all honesty, if I invest in you, I've no guarantee I'll see any of my money again, have I?
Mike: We had some restructuring costs that...
Peter: Yes, you alreadt said. But how long is this going to go on for? What do your staff think?
Mike: They all know it's a difficult...
Peter: Are they all supportive of what you are doing?
Mike: Most of them...
Peter: Most of them? How do you know that?
Mike: Our talent recruitment is a big success
Peter: But your earlier figures suggested attrition was a problem?
Mike: No, that's older folk, the kids are growing.
Peter: Kids?
Mike: I mean our digital resource capaility
Peter: You are now discriminating on age.... I am amazed. Do you even have an HR person working for you
Deborah: Very closely
Peter: (Smiling) OK, so what's the skillbase looking like now?
Mike: I showed you on this flipchart...
Peter: No, no you didn't. Drawing lots of stickmen in India and a dollar sign taking a first class trip from Amercia to Delhi is not telling me where you are in terms of offering capability.
Mike: We're reducing our costs
Peter: Mike, Mike - seriously. Having looked at these figures, you've got costs everywhere in a whole heap of stuff. I am left clueless as to what you are even specialising in. Look - it's all over the place. You could do with stripping back on these offerings for a start, they're not generating anything for you. And all these management costs? What are they doing? You need to cut those out and start increasing those who need to be out there selling and delivering.
Mike: We've had some delays in our pipeline and restructuring...
Peter: You see, I just don't understand all these excuses all the time. You are, quite frankly, insulting my intelligence now. So what's this digital pipeline you drew on the board? That snake with 'Digital pipeline' written on its belly?
Mike: No, its strong and firm pipeline of new expectation...
Peter (bewildered) what does that even mean? What is your pipeline signed TCV right now?
Mike: It's 80%
Peter: Eighty per cent what?
Mike: 80% full.
Peter: What!? I don't.... Do you know what the actual contracted signed and firmed value that is currently in your pipeline right now?
Mike: I can get Paul?
Peter: No, YOU should know. Those figures should be at your fingertips.
Mike: Difficult to quantify right now
Peter: You see, I just don't believe this. You've already promised your investors one set of figures and then let them down...badly. Now you are asking me to invest in your company because you think I believe that your costs will just magically disintegrate - pow! - and I am not to worry, because this magical digital pipeline will apear with a value you can't quantify. This is just a joke now. What are you doing with all the money?
Mike: We had a lot of costs
Peter: Such as?
Mike: erm...restructuring, transaction, separation, and integration-related costs.
Peter: We're going round in circles again. Restructuring? You mean reducing the onshore workforce?
Mike: It's our ongoing programme to become profitable from learn and grow to stable and...
Peter: How can you sit there and tell me you're a profitable company when these figures show GIS and GBS revenues down (again); you costs are still too high and yet you're p1ssing money up the wall on god knows what. Okay. Okay. Let me tell you where I am at. I've listened to you and I've still not heard any credible direction for how you are going to turn this company round. Yet you're paying shed loads to the non-executives on your board. They must feel all their christmases have come at once. You've got real problems and yet you keep telling me the pipeline is growing but you haven't fixed the problems and can't tell my what the confirmed value of the pipeline is. Personally, I think it's sprung a leak already. I just think if I give you my money, you'll just P1ss it up the wall again. Excuse my french. If you carry on as you have been, I am afraid you won't have a company to worry about. My concern is: your restructuring is taking too long and comsuming too much cost and your market has moved on even from the digital goals you'd set last year. I just don't think this business is as agile as it should be by now and I don't see a credible plan for that. lf I were to invest in you now, I am sure I am not going to get to see any return on it. So for that reason, I am out.
"Mike has failed in his plans to convince the Dragons to invest in his company. He has failed to convince the final dragon. Peter that he had a credible plan to tackle the fundemental problems and make the company into a profitable one. He must now exit the den empty handed."
- and its still tanking!
Any more and will soon need an armed escort across the gulf.
Blackrock and Vanguard have EACH lost about $600m in the last two trading days. I love it.
True but when are they going to collectively do something about it - the share price has fallen from high last year to on average $50 - $60 up to August 2019 and now it's tanking below $39 now.