Looks like old Carl is having a rough time lately. Hertz is about to file for bankruptcy. He owns 40%. They have defaulted on their lease payments, and they have until May 4th to work out agreements with their lenders or they will have to file.
Don’t worry though. I’m sure he will save us.
Oxy is heavy on (micro) management and light on leadership
@1moc, that is exactly right. Every good idea got stolen . On and on, one is practice to share because at the end of the day, those extra work and effort lead to nothing but resentment. Their micromanaging and condensending style will lead to nothing but pretty power point with nothing valuable there.
I think you are on to something. I noticed morale going down since they did a re-org and added new managers. Many of these managers are smart, but don't have management skills and just micro manage or muscle their way through what they want. If their staff come up with great ideas, they purposely don't go that route because they get no credit for the idea. Oxy has a serious management problem. I can't believe they haven't seen this. A serious serious mid-level to VP level management problem.
To be fair, you aren’t seeing Oxy for what it was either. Things haven’t been the same since the acquisition was announced. It didn’t used to be like this.
After they announced the acquisition, all the gossip and uncertainty about layoffs, office moves and drowning in debt caused the morale to start sinking. Of course the oil bust and covid19 made it much much worse, but people were already uneasy or unhappy before that. This entire deal s—s for all of us.
LAPC here, and I agree. APC wasn't perfect, but we sure did try to treat people fairly and well, and we did our best. We were proud of our company, for all the good things about APC, and we worked hard to try and get better in the areas where we were weak. Again, we weren't perfect, and we all knew it, but we really tried to work together to get better. Others may have had different experiences, but in all the areas I worked, we had very smart, kind, hard working, and ethical people who tried our best to work together to make us better.
You definitely don't realize how good it was, until it's all taken away, and you're placed in a company and culture that isn't very similar. We had it good, and I'll always be very proud of what we did there, and what I personally accomplished.
I hope you're wrong. The employees are the real losers here. Everything that has happened really illustrates how well the employees were treated at APC. We really did have it good.
Every single one of Icahn’s shares will be worth zero when Oxy files Chapter 11. He’s not saving anyone from anything. Hertz and Oxy are the same in two very important ways, they are both drowning in debt and they both have to make money selling a product. A product nobody is buying.
The only people getting rich are Buff, Ike, Kayak, and Hawaiian shirt guy.
The poors are getting robbed and you all know it. Stop painting the BOD and BH as saviors from the almighty.
Carl Icahn reportedly owned 2.5% of Oxy with a cost basis around $40/share. Now he own's ~10% of the company with that was acquired with an average share price of $12.50/share. So, what do you think he needs the stock price to be to break-even or have substantial gains. It's much much less than what we need the stock price at to have our LTI worth anything since the cost basis of the last grant was $40/share. I'm sure Carl would be happy with a deal to sell the company in the $20 range as he would have substantial gains. He took advantage of a down market to reduce his overall cost basis. The ol' Dollar Cost Averaging at work.
I am honestly thankful that both Buffet and Icahn are involved. They don't want to see the company go bankrupt and would probably inject cash if necessary. Hertz and Oxy are vastly different businesses. Even though we are part of a dying industry, demand will be restored after covid so we just need to weather the short-term (1-2 years).
It’s a good thing. Like the eye of Sauron being turned to the Black Gates when Frodo and Sam are trying to destroy the ring.