Valueact now owns 12.29% of Seagate. When will they push for a leadership change?
https://finance.yahoo.com/news/valueacts-top-6-holdings-3rd-205917449.html
9 replies (most recent on top)
Valueact is more likely to get the current leadership removed and the company sold than to rewrite the laws of physics. They are an investment organization, not Marketing.
A better name would be LastAct Investing.
Valueact will not rewrite the laws of physics, they will cash flow the business and that means cutting everything and going with a skeleton crew to run a lean business without SSD and systems. It would yield solid cash flow.
What is Valueact going to do, rewrite the laws of physics? Seagate is still a company whose only revenue stream is based on a mature technology. Their only plan for the future is a recording head that spontaneously combusts, and isn't cost competitive. Maybe they can sell the Seagate name as Bell once the largest producer of 8mm movie projectors, they sell flashlights on late night TV.
I did a search on Valueact and they pushed Steve Ballmer out of Microsoft and that led to Microsoft becoming great again. What can they do for Seagate.
https://www.seattletimes.com/business/valueact-pressure-may-have-played-role-in-ballmer-leaving/
All the cost cutting has to do with getting shareholders earnings growth. It is not going to come from revenue growth so cost cutting.
ValueAct has enough shares to have a person on Seagate’s Board of Director. This person has been an advisor to the BOD since 2016 and became a full board member this year (2018). Wonder if this has anything to do with all the cost cutting and layoffs over the past 2 years.
Valueact is actually the second largest shareholder at 9.34% of toal shares. This has been steadily growing. https://money.cnn.com/quote/shareholders/shareholders.html?symb=STX&subView=institutional
For those who didn't follow the link, Elementary is referring to the actual comment in the article that Seagate is 12.29% of Valueact's portfolio, they do not own 12.29% of Seagate. Non-story.
Err, read that line once again, Sherlock.