DXC announced in an official press release that its board of directors have approved funds for incremental share repurchase in the value of $2 billion, adding to the $1.3 billion left from the last repurchase authorization. Here’s the link providing info on this:
https://www.businesswire.com/news/home/20181108005468/en/DXC-Technology-Announces-Incremental-2.0-Billion-Share
Wow - DESPITE ML intervention stock is still falling - $61.50
Clearly the tranch for the "stop buy" at $62 has run out - and DXC are on to the next tranch at a lower floor price.
Not looking good this
DXC is toast - Shares are bumping along at $62 for only one reason - ML is burning reserves every time the shares touch $61.99.
Looks more and more like an end game "run on a bank"
All big business is doing this... to appease Wall Street in post-growth economics...
For IT related, look at HP or IBM... but everyone is doing it.
@2btz why is this stuff allowed to go on, the proletariat need to rise up! 😂
He should be taken out from the post. This looks more like a white collar crime.
.... While they make it look like some strategy....
it's all personal gain with workers money
That money would have looked great in its workers pockets. Robbing fooking bar stewards!
The man has no scruples !!!
He wants the share price falsely inflated back up where he makes maximum profit selling his remaining shares and he's using DXC's money to do it. What happens after that is no concern to him as he'll be long gone.
The snake oil salesman has just discovered that maybe the jig is up . One more deflection before the final bill arrives .
Another 'quick fix'. But we saw this ack in 2017 and whilst it worked to stave off unrest amonst the investors, there is no guarantee it will work this time. Following an exodus of Senior execcutives, the market panicked after the last high-profile sacking in the US and many decided enough was enough and cashed in their shares causing the share-price to take a nose-dive.
DXC believing their shares to be undervalued have completed a 2billion share buy-back until they believe the market has corrected itself and may see little point in continue to pay expensive dividends for a load of capital they can't access.
Whilst they buybacks are often seen as a positive sign by investors and encoruage those to invest, it also carries an element of risk that assumes the price will go up. It may not. Buybacks can certainly be a profitable action providing the company is growing. However, the lack of growth continued to be a concern that most thought would be revitalised by the acquisition of HPE and its high-profile partnerships with Microsoft and Amazon. Whilst arguably, these things take time, the market is getting impatient with all the talk. This coupled with poor staff morale and an unclear value proposition is causing hestiation and thus a sweetner such as buybacks may just rekindle interest.
However, until we see signs of a clear direction, supported by real growth in the offerings and DXC's workforce morale issues are addressed, the stability and value of this stock is reserved for those who are in it for the long haul.