https://www.thestreet.com/markets/dxc-technology-shares-slide-after-wells-fargo-cuts-price-target-15105396
4 replies (most recent on top)
I agree with the comment on Wells Fargo. LOL
Is there anything that you did right
he basically got EDS for free
And when you look at the cell off of public sector plus the 1.2 billion dollars he's charging HP and getting half of it profit on the deal
Can you go pay them three billion in cash and got back 1.5 billion
And assumed a billion dollars in debt
So we got the company at 2.5 billion
And sold off another billion dollars in assets
So now we're at 1.5 billion by my calculation that's $0.10 on the dollar he got this company
Interesting part of the quote was:
In a note to investors, analyst Ed Caso said he lowered the price target following the "the recent unexpected and abrupt resignation of CEO Mike Lawrie and the immediate shift to new CEO Mike Salvino."
So Caso didn't buy in to the claim by the DXC board that this had been planned all along for the past 12 months and was in fact a more panicked reaction to the unexpected downgrade on the outlook for the full year and the realisation that not only was Lawrie incapable of growing any business but that he couldn't even cut costs fast enough to keep up with the shrinkage of revenue.
I find it amusing that one corrupt entity (Wells Fargo), who just got a new and by all accounts incompetent CEO (BNY Mellon's Charlie Scharff) issues guidance, and the market listens.