As you know, we locked in the same Dividend for payout on April 5th. Rough calculations is $12B market cap at $60 a share and $.70 per share dividend = $140M extra cash we do not have for anything else. Feel free to correct me poor math... Many suppliers have way overdue bills we can't pay. Nobody internally seems to fund anything to develop new. For a supposedly cutting edge tech company, the signs are clear -> Rather go bankrupt than question the record TC of the CFO. We're f-cked & and they clearly don't give a s-ht.
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Otw
IBM runs the entire online website store for Target. You have to be able to tell a company you will run and operate the whole internet presence so they don't have to worry about being IT and hardware business experts. Maybe we can all show up at a potential client and open up our 8 year old laptops from 2014 and act like we are a serious player. Seagate isn't serious enough about being a top tier company. That should have been made clear when they came and took everyone's office phone away for cost savings.
Nailed it! The executive team lacks the imagination to conceive of a business models or alternative strategies beyond a hardware-oriented focus. IBM's successful pivot towards Global Services highlights the critical importance of having leaders with the capacity to envision and implement strategic shifts in response to changing market conditions.
Yes - you put your finger on it. Seagate leadership has no vision. Except for a vision of what they are going to do in retirement with money they have made. No one at the top really has a plan for the long-term viability of the company. That’s a problem for someone else. Sadly, this is not a problem unique to Seagate.
The truth is Seagate is more interested in Investor/Shareholder money than in developing a product/service that people/companies want to buy. You can argue that if you invest in your products/services, then you will attract Shareholders, but you can equally make the argument that if you entice Shareholders to buy stock by continually providing dividends that outpace the value of the products/services, you should be able to take that money and invest it back into the products/services and deliver a product that has a high demand that will in turn entice more Shareholder purchases.... BUT>>>>>>>> As every technology manufacturing company has already learned, selling equipment is not profitable. IBM sold it's server/PC line to Lenovo because they realized that the profit margins on equipment are minimal. They wanted to focus on selling services and consulting and software because the margins are off the charts. Why aren't we investing in our LYVE Storage as a Service product, and shift our manufacturing to developing drives that will house the data services we sell? The downside is minimal. But that would mean a shift in conventional thinking within Seagate leadership visions.....
Google for N42ST flight tracker. It’s public info.
How do you know that the corporate jet is in Hawaii?
Milk the honey they will! Like fearless Sales EVP plan to continue with their world wide sales group meeting in some exotic location. They will fly some 300 people around while the much cheaper tech review stays canned.
They will milk as much money as possible till the very last day of solvency. Kind of like SVB execs did. Yeah, there's been zero capital budget for multiple departments now for YEARS. How's that 6 year old laptop running for you? Maybe yours is actually 7 or 8 years old now like mine is. Living the IT 4.0 on the EDGE aren't we? It's not over because there's still plenty of people to lay off before they are forced to play the final hand.
But the corporate jet is currently in Kona, Hawaii - so we have that going for us.
Bankruptcy requires a negative cash on hand. $140M is far from negative.
Dividends are still being earned so bankruptcy is not in the picture at this point. When the shares are closer to $5 a share or below, then it might be filing time. Until then everything is business as usual.