It is no longer a question of if, it is a question of when.
Shorting OTEX will be profitable if timing is correct.
So, when will OTEX die?
According to Yahoo finance, no "analysts" have rated sell.
7 replies (most recent on top)
Based on our recent patterns and stated strategy, we can expect a gradual dismantling (or "slow bleed") of the department rather than a sudden shutdown.
Do not wait for a "shut down" date. Your department likely won't disappear. It will just become impossible to hit quota or extremely understaffed.
The stock recently crossed below its 50-day moving average. In trading forums, this often generates negative sentiment or rumors that "insiders are bearish," though this is standard technical behavior rather than a leak of bad news.
Zacks Research recently downgraded OpenText to a "Hold" rating (Jan 7).
@k1 After three decades in the IT industry, this is the worst I’ve seen it. It is alarming to see a disconnect between the perspectives of our executives, employees, and customers regarding the company's performance and the quality of our products.
This lack of alignment makes everything difficult, not only for our operational efficiency but also for trying to increase employee morale, especially Sales which is simply exhausted trying to create compelling events to sell buggy, long in the tooth software.
Our development and sales teams needs to have products they can truly stand behind, rather than those that are simply marketed with exaggerated claims, which was the culture set by the previous CEO.
The ELT and board members need to watch Undercover Boss. If they tried to do some of the development work or tried to address customers issues, they would understand where we reallY are. Rather, they are all still believing the rhetoric on display in Nashville back in November. It’s simply sad.
Hope they fire shannon and get a decent leader to let them team become successfull again. right now it is the absolute worst I've ever seen (and I've go 30+ years experience).
OT is definitely on a downward trajectory. The reason they haven't announced a CEO is they have probably found one who is already working behind the scenes..they will announce his/her position when the plan/timeline for the company's fate has already been approved by the Board.
OR they are looking for someone with strong credentials in the area of disposal of assets (core and non-core). Like another poster commented ..my guess would be in the range of 18 (maybe 24) months. It has already been announced they will shed non-performing assets and in doing so they
will continue to eliminate and offshore a lot of jobs, (especially in the US).
Any employees still there should strongly consider looking for a new job. Whatever they decide..please do not listen to 'flowery' messaging the ELT, C-Suite or the Board pukes up.
They are just trying to keep you engaged long enough to get the transaction done. Save yourself...at this point OT Leadership is just rearranging the deck chairs on the Titanic.
Business will decline again this year, people will start dumping the stock which will result in a death spiral
My guess is in 18 months it will no longer exist
Sears/Kmart is a great example. It will stay public as long as people are willing to buy the stock. And it will stay in business privately until the Executives and Board members are unable to keep their high paying salaries and can’t give themselves bonuses. Today OpenText is still considered a “cash cow.” For context, many successful tech companies aim for 20–25%. OpenText’s 36.3% is considered "robust" by analysts at firms like Barclays and CIBC, who monitor these margins to judge the company's health. That’s because many customers still have active support contracts and subscriptions. But as companies leave without acquiring new ones or organically growing existing ones, the company with die a slow death.