https://www.stocktitan.net/sec-filings/XRX/s-3-xerox-holdings-corp-shelf-registration-statement-257169fede10.html
So they decided to print more shares. It's down ~12% pre market as of 8:50 EST.
WOW. There is never a good time to do something this stupid, but a week before earnings. This is super desperate.
@b8 I hear that silverlight code is in the running as the replacement.
@b8 tw*t
Is it too late to replace the Java based Ui?
The end is near
@ag probably cancel the dividend for a bit, or forever.
@am sure hope so.
On a positive note maybe they need the money to pay out the exit terms of some employment contract. :)
The one thing the executive team and board have done really well in the last 18 years is malpractice and capital destruction, and it doesn't matter who is in charge. The cumulative share buybacks since 2008 was over $10.2 Billion. Today's value of those shares held in the treasury stock account is under $840 Million. The direct capital destruction is over $9.4 Billion. Doing nothing would've been a better option, but they went even further and spent $6.2 Billion on ACS, $1.2 Billion on GIS, $??? Millions on Impika.
do all these shares pay a dividend and where is that coming from
@a6 makes sense thanks for this
@a7 they bought Icahn out at $16 a share only to sell shares a few years later at $2. Brilliant management. Time to dump management.
@a5 will be interesting to see who buys this toilet paper.
@a7 this does help a it thank you - let us pray…..
No affect on earnings at all. EPS will decline for Q1 assuming earnings are flat
@a5 I only skimmed it but it seems like this filing says:
1) Xerox may sell 250M worth of stock at some time in the future
2) Xerox may issue warrants that can be exchanged for stock at a certain price in the future. This would be an incentive for people to buy the stock.
These actions, if taken, will dilute the value of the stock further, but are designed to raise cash.
They printed shares that will dilute the value of existing shares. Shares are pieces of ownership and stores of value. If you print more, they are worth less per share because there more and more slices of the same pie.
They will release these in dribs and drabs, but the fact they printed nearly the current market cap in new shares is alarming.
I hope this helps.
@a5 it’s the same. Dilutes ownership that why stock declining today. Each share is now a smaller piece of the pie.
@a2 for us amateurs can you explain what this stock offering means? So basically they want people to buy shares of Xrx and they are giving x amount of share for available purchase? Is that different then investor stocks?
Damn….insane. No words. Speechless.
@OP while it wont impact what the Q4 earnings are, the timing of it does seem a tad bit off. It does appear that they are over leveraged and desperate. Xrx is cooked.
Goodwill guy here.
I talk a lot of doom and gloom, but I could not have imagined they would have printed almost a 2nd market cap's worth of stock a week before earnings. However bad I thought this was, it's worse. Today will be a wild day for XRX
Yeah, things are not going in the right direction for sure.