Citrix stock buyback and dividends program is exhibiting DH’s main move
Keep Elliott happy and keep the job.
Why bother investing in R&D?
13 replies (most recent on top)
Fuc sh--rix
Elliott may not sell even if the stock hits 150. Stock buyback instead of investing in the future is a perfect recipe for disaster.
Fuc sh--rix and the ELT floridiot morons that have driven the company into the sh--pile .
Fuc them all , f---ing c---s---er m------f----s
Winners grow the share price by growing revenue. Losers grow the share price with stock buybacks.
Citrix is under-performing in a growing market. The market for VDI as a whole grew 5.5% year over year from 2016 to 2017. Citrix revenue dropped 2.2 percent. Citrix has more than 10 competitors that are growing market share. The top two competitors, Microsoft and VMware, each have over 50% of the revenues of Citrix. AWS grew 53% YoY and has reached 12% of the revenues of Citrix.
DH has been with the company for 14 years. He should have it all figured out. He called his tenure out as a key qualification for the CEO role. Citrix does not have 5 years. It is losing ground rapidly.
We are subject to hundreds of biases and fall prey to any number of fallacies—weighing sunk costs, ignoring opportunity costs, discounting future gains and losses with large errors—that economics professors preach against in their intro courses
DH has a challenging job. Give him 5 years to judge his performance
He just sold 10k shares. So what?
DH, Do you understand what's the key point here?
https://cloudblogs.microsoft.com/enterprisemobility/2018/06/12/how-we-built-rebuilt-intune-into-a-leading-globally-scaled-cloud-service/
For 2B, Citrix can probably buy a company that can generate additional 500M in revenue in a few years.
It depends on what the board wants.
The dividend Citrix stock is 35 cents a share, so with a share price of $106 that's a .33% dividend. It should be a 3.3% dividend based on the risk and to make it attractive. I can't see buying a stock to get a .33% dividend.
It's not 5% dividend. It's buybacks. 2B not in R&D but back to boost the stock price. Who benefits from short term stock price?
https://www.citrix.com/news/announcements/nov-2017/citrix-authorizes-aggregate-2-billion-share-repurchase.html
David Henshall, CEO of Citrix stated, “With the announcement of our multi-year cloud transition and operational efficiency initiatives, we believe Citrix is well-positioned to generate strong cash flow growth and shareholder value. This $2 billion repurchase program demonstrates our confidence in the plan and our commitment to best-in-class capital return for shareholders.”
Limited R&D expenses and layoffs means no investment in the future.
5% dividend. F--- - more than Apple.
How can we grow license revenue growth if all the money is given back to wall street instead of investing in our future?
Must be embarrassing for Citrix to read such reports!
https://www.brianmadden.com/opinion/Citrix-Cloud-licensing-is-complicated-just-like-on-premises-licensing