Post Number: 1755
|Posted on Wednesday, March 14, 2007 - 11:32 am: || |
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
Post Number: 4135
|Posted on Wednesday, March 14, 2007 - 11:34 am: || |
Are they going to move to Houston?
Post Number: 2767
|Posted on Wednesday, March 14, 2007 - 11:40 am: || |
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)
Post Number: 8531
|Posted on Wednesday, March 14, 2007 - 12:31 pm: || |
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.
Post Number: 1022
|Posted on Wednesday, March 14, 2007 - 12:55 pm: || |
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.
Post Number: 8533
|Posted on Wednesday, March 14, 2007 - 1:12 pm: || |
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.
Post Number: 527
|Posted on Wednesday, March 14, 2007 - 1:22 pm: || |
.....but boy do we need them to keep these CEO's on their toes and the shareholders happy.
Post Number: 2136
|Posted on Wednesday, March 14, 2007 - 2:01 pm: || |
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.
Post Number: 502
|Posted on Wednesday, March 14, 2007 - 2:04 pm: || |
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.
Post Number: 528
|Posted on Wednesday, March 14, 2007 - 2:10 pm: || |
Dabirch: Good analysis.
Post Number: 736
|Posted on Wednesday, March 14, 2007 - 2:11 pm: || |
ahh to hell with it
(Message edited by thejesus on March 14, 2007)