Less than a couple years ago, this stock was above $200 per share. Now, it's a little above $70 USD. Looks like there's been several key executive exits, a number of cost-cuts, layoffs appear commonplace at the line level, and the big one - a lack of topline growth. Other than some strong opinions about layers upon layers upon layers of management protecting management - the culture continues to appear as a bright light. That's a good sign, right? What's your take here? Time for a position...or time to wait it out...or keep walking? Is this company a value or a value trap?
13 replies (most recent on top)
@343 Insight wanted to buy Connections a few years back, should of as it would of given more of a solid foothold vs CDW. They went down another path and those fruits have not ripened yet as Google and Microsoft took all the large customers direct leaving them with mid-market nothingness....
@2te I can see how it would appear that way, but no. I just like money - and see potential in the IT channel of VARs. When I asked this original post question NSIT was slightly above $70/shr. Now it's $97. So...a missed opportunity. Not even the small-cap index funds kept pace in this small timeframe. However, IJR, VIOO, VTWO (small cap and tech centric funds) hold micro positions of stocks such as Insight, Connections, EPlus, CDW and Distributors. They've performed well over 1-yr and 5-yr timelines. Thanks for the perspective anyway.
@2pj you sound like someone in Finance (that hasn't quit yet or been sacked or offshored) trying to put a positive spin on things, all the while we know that only Insight is purchasing this stock. Grift it to the spin.
@qc ...and Morgan Stanley, and Eaton Vance, and Atlanta Capital, and FMI, and BlackRock, and Boston Partners, and Point72 Asset Management, and Goldman Sachs Group, and AQR Capital Management. The institutional narrative around the stock has cleanly shifted. The concentrated, activist-driven holding of ValueAct has been decentralized, redistributed into high-quality, long-only small-cap mutual funds and broad index-tracking ETFs.
@29r It's been a long-planned structural exit which wrapped up earlier this spring. A final execution of a liquidation on ValueAct's disclosure. Began mid-24, shares sold as enterprise IT budgets tightened across the industry and transitioned strategically by the activist investor group. Just sharing facts.
Looks like Bozo_the_CFO bought some, maybe to help out his new buddy buddy in hitting his goal of driving the stock price up so that Jack-ATTack can hit his targets of monster payout. Oh and wait.. the entire Stock Buy Back program will be the only thing helping to get to those targets. Talk about self-fulfilling to the MAX. Let's give ourselves another raise while the pions get none. Hold on, let's fire more pions so that there are less outstanding shares in the ESPP program to payout on! Brilliant matey mate!
Value Act just liquidated all their Insight shares. Wonder why…. LOL 😂
@qc short squeeze
The ONLY company buying NSIT is NSIT.
Stock by back program in full swing to boost the stock post earnings meh... Look at what just happened with CDW's beat and stock getting stomped.
hahahahah value?
28% decrease in software sales, like software is the easiest thing to sell, wait, not playing with the big boys and girls any more and forced into Mid-Market sales, well they don't buy that much, there goes my commissions forecast. Wait, they keep changing the comp plans, yet again.
49% increase in restructuring costs.. talk about taking a blowtorch to the employees, that's a lot of $$$ to spend to make room for buddies.
ZERO execs / insiders stock purchases.. They don't even believe in themselves... How's that for a tell tale sign?
If you are looking for investing advice, stay away, value? Well considering the lack of growth and margin expansion only as a result of cost cutting, this is not a long term play.
Execs have for sure left, those that have not left, have been the victim of cost cutting, most have been pushed out at the SVP and VP level, clearing the path for buddy hires from those recently brought in. Not only that, but it's not like they have been bringing in A+++ talent leaders, but chums to watch their backs. B players hire B players, there is no A Team at this company. Seriously, look at the financial results.
@OP considering this is thelayoff.com I doubt you will get any buy recommendations here. Whatever competitive advantage or goodwill they had has been pi---d away. This goes to $0 before it sees $200 again. Even if somehow it's a value, consider the opportunity cost in waiting for it to resurface.