Anybody hearing when the repurchase is to take place? is it the full 5 billion? Clemmer mentioned on bloomberg that he may do some small acquisitions as well so this makes me a bit nervous about how big the repurchase will be. Anywhere near 110 and I would love to dump this and move on to other players.
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Let's fresh our memories (all data below can be found on web):
2006 spinoff from Philips - N is born
2008 spinoff Mobile Personal - the JV ST Ericsson born - 2013 bankrupt
2009 Redesign Program - chopped 4500 heads to achieve 500M$ opex
2010 buy multimedia from Conexant, integrate into Home BU, sell it to Trident. 2012 Trident bankrupt
2011-2015 were golden years of Security business for smartphones. Now that market gets saturated. Automotive & IoT is new growth. These guys predicted this already in 2014: prep started with xFSL takeover. Actually Q wanted xFSL but N was used in between as bootstrap / tax inversion.
In 2010 IPO was 14$. Now it is 100ish. Independent from all restructuring above, this is actually a huge success of RC for investors. You capitalized a company 7x in 7 years!
After Q similar structuring would have been planned. Now this should be done without Q. Therefore spinoff, takeover, buyback and related layoffs are now inevitable. For this 2-3 years of capex / opex prep coming.
This is the new era of business. As long as money is cheap with low interest rates it will be quite easy to buy/sell/axe.
This won't come to an end. Semi isn't like in 90s! Exception could be stock market crash expected since last crisis in 2009 - in that case all plans might have to be revised
If NXP is not going to drive up the share price with a share purchase plan, why bother? I thought the whole idea was to compensate investors for it being artificially low against the gains of similar companies during the last 2 years e.g. ST.
If this is NXP's plan they are in for a shock, not too many people on the street, or at home investing are going to be impressed by this. I have difficulty believing Clemmer is not going to deliver value to the market. By now everyone should know he is all about delivering shareholder value, even at the expense of the company and employees.
Personally I think he will fire a bunch of people, buy some small companies that fit with the Auto space, fire a bunch more people, sell or close some operations and use the new money to drive up the share price and lower the head count. As someone said in another post, he will have 5 billion but he won't bother changing the stinky carpets.
On July 25th, the Board of Directors approved this 5 bil program of share repurchased. This will take place either on the open market, or in private deals. The authorization lasts a year or 1.5 years. NXP will pick-up shares when convenient. It will not try to drive up the price so that the hedge funds could sell high. No, no, no, Absolutely NOT. Rick Clemmer despise those big guys that bought in at 110 to make a quick easy buck. Rick Clemmer likes the pension funds guys, the long term holders. NXP will not drive up the price in the short term to cut losses on the speculators. NXP will provide a floor under 90$, perhaps. But since the pressure from those hedge funds is to sell, NXP will wait for the price to fall.