What on earth are the board of Directors doing lending their time to this shoddy mess? USISPF, SAIC, MetLife, Visteon Corp., Marsh & McLennan Companies, Capital Partners Limited and Carrick Capital Partners. Really? You are happy to put your reputation against this!?
The shareholders now need to take a vote, as the this is clearly sinking way too fast now.
We can see the earnings per growth in the 'IT sector' has been 12.6% in the past year; the market 21.4% and DXC's around -30.2%. They had to create a negative y-axis just to show DXC's red bar digging downwards.
However, don't despair, the analysts believe the stock is massively under-valued and believe that this time next year it will be worth at least $101 per share!? Really? It will go from forty - whatever it is now - to more than double? Are these the same analysts who predicted this last year? I suppose they can say these things because they have of their vast resource of predictive data models and recreational happy pills.
The analysts (the ones who regurgitate the company press releases without bothering to do any of their own research) believe that DXC's digital growth will be so big that everyone on the planet will ill disappear up their own digital cloud portals.
Apparently, what you are all going through right now and what we are seeing on the stock exchange is what Mikey refers to as 'revenue dynamic'. It certainly doesn't refer to the $5M he stole from you all when you were all busy watching your own backs. No. It means - in his words - a 'lumpy ride' that is the 'balance of traditional decline meets digital growth.'
He also said something about needing to cut another 10,000 jobs with 5,000 of the cuts to be focussed on India. Does this include the thousands they hired between 2015 and 2017? I recall they riffed a lot of new hires in india withing 6 months fo them joining (although they were merely sacrificed by management to protect the experienced workers before that game was rumbled and the rules were changed to riff people with grey hair or anyone suspected of going slightly thin on top).
It shouldn't be long now till the collapse. But it is getting worse than sitting through all those adverts and trailers before the movie starts. Come on DXC, I've nearly finished my popcorn here!
I give it 6 months before the major companies with contracts start exiting for cause. Then the rats will start to desert the sinking ship. I look for cronies to pick-up the digital business in a fire sale and let the rest go to bankruptcy.
Missing ref from post below
https://www.dividend.com/dividend-education/how-to-spot-a-dividend-value-trap/
I am sure those investors are aware that DXC is paying out higher than average dividend for the tech sector. They are happy to take the payout whilst calculating the exit timing!
1.77% versus 1.09% average - reference below.
"The first sign of a value trap can be when you see a company paying a much higher dividend yield than its peers. When you see something like this, don’t just accept it at face value. Take a closer look. Question whether the company has the ability to meet its obligations, and if it is being run in an efficient manner. "
The question is "who will blink first?"
When the current regime of cost cuts over real business development cannot fund the payout - the investor is exodus will be very abrupt.