Discuss Detroit Archives - Beginning January 2007 Possible Bad News at Compuware Previous Next
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_sj_
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Username: _sj_

Post Number: 1755
Registered: 12-2003
Posted on Wednesday, March 14, 2007 - 11:32 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

According to the Freep, they are throwing around another restructuring plan to stave off acquisition. That would be two restructuring in less than 5 years.

http://www.freep.com/apps/pbcs .dll/article?AID=/20070314/BUS INESS06/703140324/1002/BUSINES S
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Patrick
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Username: Patrick

Post Number: 4135
Registered: 10-2003
Posted on Wednesday, March 14, 2007 - 11:34 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Are they going to move to Houston?
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Livernoisyard
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Username: Livernoisyard

Post Number: 2767
Registered: 10-2004
Posted on Wednesday, March 14, 2007 - 11:40 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

They'll stay put in Detroit but it doesn't look so hot for all companies like Rock surviving in the current economy. The NYSE suspended trading in one of Rock's competitors yesterday due to accounting problems and its imminent bankruptcy due to too many ARM holders simply walking away from their homes because of negative equity in their properties after their mortgage rates soared.

(Message edited by LivernoisYard on March 14, 2007)
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Gannon
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Username: Gannon

Post Number: 8531
Registered: 12-2003
Posted on Wednesday, March 14, 2007 - 12:31 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

NO, not a problem, just the smart Old Man realizing that some of the young minds he hired to kiss Wall Street's insatiable ass have the same myopia as the other brilliant young MBAs who've polluted the corporate capitalist experience. (when credit and debt were friendly, of course, but myopic nonetheless)

IF ONLY they could go private and get these idiot greedy bankers off their backs, same with Ford. Too late for both, I think.



I heard that Karmanos considers the previous layoffs to have been a HUGE mistake, and that they'd have a better position IF they had that personpower in-house today for research, development, and new-market growth.
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Sharmaal
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Username: Sharmaal

Post Number: 1022
Registered: 09-2004
Posted on Wednesday, March 14, 2007 - 12:55 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Compuware has been a possible takeover target for years. The talk is heating up because of all the Private Equity action lately.

They have CRAP LOADS of cash on hand for a company of their size, and a very low share price. This is just Mr. Karmanos giving it straight to the employees.
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Gannon
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Username: Gannon

Post Number: 8533
Registered: 12-2003
Posted on Wednesday, March 14, 2007 - 1:12 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Crap loads of cash USED to mean freedom to invest in your company and its future...before these corporate raiders started their game.


The Gordon Gekko's of the world are an evil, greedy, destructive bunch, indeed.
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3rdworldcity
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Username: 3rdworldcity

Post Number: 527
Registered: 01-2005
Posted on Wednesday, March 14, 2007 - 1:22 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

.....but boy do we need them to keep these CEO's on their toes and the shareholders happy.
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Dabirch
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Username: Dabirch

Post Number: 2136
Registered: 06-2004
Posted on Wednesday, March 14, 2007 - 2:01 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

quote:

They have CRAP LOADS of cash on hand for a company of their size, and a very low share price.



Yes, they have $500m on hand on no debt.

However, factoring that in, they still have an EV of about $2.5b

That for a company that has shown no growth, are in a market sector that shows no growth, and has about $200m in annual cash flow.

A stock that is priced at 12.5x of Cash flow in a no growth sector is not cheap, in fact it is quite expensive.

It is an expensive stock as a cash flow annuity (which is what their business basically is at this point). So unless somebody has the vision to turn it into a growth stock, or to leverage its assets much, much more effectively, I can't see equity biting.
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Iheartthed
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Username: Iheartthed

Post Number: 502
Registered: 04-2006
Posted on Wednesday, March 14, 2007 - 2:04 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

If they have that much cash then they could jack up their share price if necessary...

They need to expand their business model... just because it's tired if anything else.
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3rdworldcity
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Username: 3rdworldcity

Post Number: 528
Registered: 01-2005
Posted on Wednesday, March 14, 2007 - 2:10 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Dabirch: Good analysis.
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Thejesus
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Username: Thejesus

Post Number: 736
Registered: 06-2006
Posted on Wednesday, March 14, 2007 - 2:11 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)



ahh to hell with it

(Message edited by thejesus on March 14, 2007)

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