Thread regarding DXC Technology layoffs

Another Wall Street id--t speaks

https://seekingalpha.com/article/4285318-dxc-technology-falls-30-percent

They truly have little idea about the inner workings of something that they put their money into do they?

Still he does pull a few nuggets out for us...

1) non-GAAP to GAAP reconciliation shows what anyone who understands what GAAP means - its Generally Accepted Accounting Principles - ie the real figures. "non-GAAP" being basically piles of unrelated numbers added up to try and make things look rosey - ie the Mikey and Paul Show. Look at that table and see quite how detached from reality this is.

2) "Delays in the headcount reduction during the Q1 period is troubling. Although DXC cut 3,900 staff in the quarter" - ahhh so it was 3900 heads - roughly 3% I make that but thats of the global workforce. If you looked at just USA/Europe/Australia, its probably a lot higher.

3) "those who are still working at the company will not have the drive to work efficiently and productively." - really? No sh1t Sherlock. He's not pointed out how enormous gaps have opened up with literally nobody assigned to cover those functions yet or that we all knew even before they said "we failed to cut fast enough" that anyone in USA/Western Europe/Australia is targeted next quarter.

4) On that same note "Although the $250 million to $300 million cost savings is below the original target of $400 million" so that's what, another 2000 heads to roll? Mikey/Paul said it publicly, they can't fail to follow through on this...

5) "DXC will eventually get there." - THERE of course being Chapter 11 I presume.

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| 1791 views | | 6 replies (last August 15, 2019) | Reply
Post ID: @OP+10xAbJyl

6 replies (most recent on top)

The Investor is truely mistaken especially on 5) but underestimated 2) more WFR and offshoring - more cost cutting to follow - share price down to $30

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Post ID: @1cnr+10xAbJyl

Is this the same guy who says: ‘markets have lost patients’ (sic) they shouldn’t offer medical care then.

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Post ID: @1knj+10xAbJyl

Sale/divestitures/spin-offs/merger. No Ch.11.

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Post ID: @yzw+10xAbJyl

@10xAbJyl-vhx - Agree investors just want to make money(even if this includes WFR and offshoring stuff away to lower cost centres - They don't care - all they want is ROI and nothing more.

Good news is that many may have lost a bit of their $$ due to the recent dip but other opportunists would have made money - regardless don't feel sorry for the board, ML nor the investors and countless middle management if they lost $ - feel sorry for the hard working grunts on the ground

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Post ID: @aes+10xAbJyl

The investors and analysts neither know or care about the inner workings of companies in which they invest. It's just about the numbers and largely based around EPS.

The Analyst Call transcripts, available on Seeking Alpha and from which this article was sourced, always make for interesting reading.

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Post ID: @vhx+10xAbJyl

THe majority of these investment sitea are written by bots. The wording is really strange when you read them, it's almost like a parallel universe. Even the one's that are not cannot be trusted due to vested interest and people sitting on massive paper losses. I think the crucial thing now is DXC's Debt/Equity ratio. The company owes more than its value in debt! That seems like an important delta and will make many wary of touching this stock. Lawrtie has taken things right back to where CSC was in 2012 whan he joined - "Junk bond" status!

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Post ID: @azz+10xAbJyl

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