I disagree that # 3 & # 4 are redundant.......I have seem several mgmt teams
increase margins but screw up the resulting FCF over my 43 years of investing
At the least Peltz, with his 2 board seats now, has the ability to hold a gun
to the head of the current management team.....to act swiftly......or he & the
board have the ability to ''fire a bunch of people'' as you say.
Point #3 and #4 are redundant ( if you cut operating cost and selling/general/administrative costs, the operating margins will inherently improve, increasing operating profits).
If i'm understanding the point, Peltz is being held as a "knight in shining armor" because his lack of deep ties to the company will make it easier for him to come in and fire a bunch of people. good to know.
In your opinion how long will it take Peltz and the Sysco Board to redirect
the SYY operations and markedly improve financial results...?
When does SYY get a new CEO....?
What's your opinion of the price for SYY ...... on Sept 15, 2016
An ultra short answer to a very long list of problems would be .......
1. Cut operating costs
2. Cut SG & A costs
3. Improve operating margins
4. Drive better FCF and net operating profits
BTW the failed USF acquisition never came close to being finalized....SYY mgmt should
have seen this future event & called off the deal before tons of $$$ was spent on a flawed
plan. But mgmt was way too invested in this deal that sweetening their pockets to look
at this deal in a rational fashion....all they saw was $$$$ for the mgmt team.
Peltz will have an easy time fixing this firm due to its many weaknesses. For a longer
answer to your question I suggest you check the Trian Capital website. IMO it sounds like
you need to do some DD on what Trian thinks can be fixed at Sysco.
What ''has folks here excited'' ........ is a new mgmt/BOD strategic plan.......
Just for argument's sake, what's the one actual change that, having done the work and actually looking through the financial reports, Peltz could do to positively impact the company?
Feel how you want about the attempt to acquire US Foods, the idea seemed to be that acquiring acquiring the business would help expand Sysco's reach, allow for further synergies across markets, which would lower costs, increase profits, etc, etc.
Maybe I need to learn more about the food distribution business, but what is Peltz actually supposed to do that has folks here excited?
Finally the cavalry has arrived. Waste and incomprehensible costs everywhere you look, far more than any other company like this. None even close. Cash in the bank is like management's personal expense accounts. Sysco is like the Federal government. Mr. Peltz, you have so much work to do. We are with you, good luck.
"natural" is a term having NO clinically relevant, objective criteria.and is therefore meaningless. However, if "organic" sells give the suckers all they want to buy.
Josh Frank and Nelson Peltz will join the SYY board.
2 seats for Trian Fund and investors associated with them.
What does any of that have to do with Trian Fund receiving 2 Seats on the SYY Board this morning ?
Funny Nelson is right back where he started when he finished college in his fathers business. A.Peltz & sons institutional frozen food distributor on Greenwich St in NY Washington mkt. They called his father, Penny a pound Peltz and had a specialty fresh peeled apples. He and his brother Bob merged their fathers company into a English company if I remember the company was called Chipwich. This turned into a fiasco , but in reality Nelson was not really involved but this did become a huge mess and finally failed.
And his name is Mr Nelson Peltz with his associates at Trian Fund Management and
probably several other large fund investors who are in support of Mr Peltz philosophies
and ideas regarding how to greatly improve SYY performance.....
Look for Mr Peltz to take one or two seats at the SYY Board this summer.......
The best thing is ....this new Chairman gets compensated the exact same way all
shareholders do....by stock appreciation.......!!
Welcome aboard Mr Peltz..!!
The only private equity deal SYY mgmt will be discussing will be their
''deal'' with Trian Fund and the other large investors who will be asking
SYY mgmt to ''deal'' with their poor management and performance
heading this firm....!
Nelson Petlz and Trian Fund Management have been looking over SYY since the
bad merger idea got killed. Trian says the SYY story is a slam dunk for Peltz
and other large investors they can bring to the table as they discuss how the weak
SYY mgmt can right the tilting ship that is now SYY.
No small bolt on deals now ......just new ideas on how to run the entire enterprise
and make this CEO and his cronies responsible for their actions.
SYY should be at $ 45 by fall.........
Shareholders of SYY get news that one of the most well regarded activist
investors in the USA has taken a 7 % stake in what is left of SYY after the
I have to say that SYY will be "low hanging fruit" for Trian Fund Management
who will probably have the support of other large investors, to discuss and
''suggest'' to mgmt how to get for EBITDA and FCF out of existing operations.
Watch for Trian to get one or two seat on the SYY BOD this summer...????
Maybe this thing goes to $ 45 this year...I have been long SYY since $ 26.50.
IMO there's a heck of a lot more than just shaving a few % from inputs costs that an be done
to improve this operating quagmire.
Shareholders deserve better from the current mgmt after their botched bad merger idea.
I not expecting top mgmt to be replaced yet, they are well entrenched here, but if they don't
listen to their new large shareholder partner, then annual shareholder votes could be a lot
more interesting in the future....
Like to see this stock get to $ 45 this year.
Can't you go to the SYY Investors Relations site and read for yourself ....????
Whatever happened to going one's own due diligence..?????