Buckeye is spot on. These buyout rumors surface every few months on this board and CSC is not a prospect for anybody. Xerox is still trying to swallow the misery that is ACS. IBM is cutting staff and is in no mood to add more payroll. And CSC is restructuring anyway, more firings- eh, workforce balance and has no new PRIVATE sector contracts coming in. None that have been announced anyway. PUBLIC sector is getting a hard sell too.
Not going to happen - especially at $112/share which is nearly a 100% premium.
Why is this not going to happen?
1. CSC is way over-valued at $59/share, much less anything north of that.
2. CSC is NOT a growth company -
3. CSC, at best, is a laggard in the commodity IT Outsourcing business This is a very mature industry which is threatened by migration to the Cloud.
3. CSC has cut through the bone in reducing staff and, as a result, has lost significant tribal knowledge of accounts, products and services, etc.
I suggest you put your money where your post is: maybe invest your net worth into this stock and see what happens.
Interesting that those who have left CSC sometime in the recent (and maybe not so recent) past have gotten their brochures and information on this - however I do not know of any still employed by CSC that have gotten theirs. I heard rumor that it would be coming out around the 15th of September.
Just another hope to reduce some liabilities to the company by CSC Management. You know, liabilities - like employees, employee benefits, etc.
So, did they provide the LUMP SUM amount to you as well, or indicate when that was coming? Or was this more of an "informational notification" letter?
If the price is right, given tax implications and everything else, this MAY be the thing that takes me over the top and gives me the impetus to jump ship, bail out, give up - any of a thousand ways to look at it. I am hoping I get my letter soon.
Difficult to tell all of the tax implications without discussing with a CFP. Difficult to delay to bypass tax implications, but there are ways to bypass penalty implications if you are over 55, but not yet 59 1/2.
Received brochure from CSC the other day stating:
"Opportunity to Access Your Pension Benefit Now"
"Between September 22 and November 7, 2014"
Brochure provides 3 choices.
1. Take a Lump Sum Now --- NO mention of tax consequences.
2. Begin Annuity Payment Now
3. Wait to Take Your Pension Benefit at Retirement Age
Since I was laid off from CSC almost a year ago and am just barely vested in the pension I had already begun to investigate my options.
ANYONE who is less than 59 and 1/2 that takes a lump sum or annuity payment that is NOT rolled over into an IRA has to pay federal and state taxes (no surprise there), BUT also has to pay the 10 percent penalty for early withdrawal.
Seems to me the brochure is quite deceptive.
I called just to be certain I was on the correct page and the representative said CSC has over 40 pension plans (probably due to mergers and acquisitions) associated with the company. So I figure the latest M. Lawrie "cost takeout" is too get out from under as much of its pension liability as possible as soon as possible.
By the way Lawrie sold stock right up to the conference call. then stopped when the price collapsed and has now started selling since / when the price gets to $60 or above.
I don't know, but I think CSC lost a great deal, if not all the work to the likes of Northrop Grumman and some smaller companies. Even the IRS couldn't tolerate the CSC transformation.
Sounds weird, but I am watching for Jobs in Georgia and CSC has an open position for the Center for Disease Control - ??? OMG, this lousy firm is a contractor for this location? First, it is CSC so I would never apply and it is also CDC so I want to come home alive at the end of the day.
I cannot forget my own experience with CSC - Constantly Screwed Customers. Jeremiah knows my story well. August 2004 - outsourced and promises, YOU have a great future with CSC, lotsa benefits, good stuff - total happiness. 14 months. December, 2005. Goodbye and don't let the door hit your on the way out. (Oh, that was 140 of us too that got the shaft). Epilogue - CSC called in BancTec to make offers. To only 40 of us, not more. The offers were so bad only 10 accepted and the count of 40 was engineered to skirt the Federal WARN act provisions, 100 or more and you have to pay 60 days severance, not 30. Cute.
Good to see you back Jeremiah. Spot on but you can extend this logic to most of corporate America, thinking of IBM to start with. If you go back to W. Edwards Deming, the logic that business exists for the SHAREHOLDERS (and executives) is just plain wrong. IF the business exists for CUSTOMERS and provides a valuable, REAL SERVICE plus treating employees well (see Watson, Thomas J. Sr.) THEN it will thrive. Shareholders will be rewarded and new business will acrue. EGAD, what a novel concept?
But, that would take leadership that CARES about their employees. That does not apply here based on everything that they have taken from the employees in the past several years.
Management does not care about employees here, they only care about lining their pockets with bonuses by doing whatever they can to artificially inflate stock prices to meet goals needed for their bonus.
ACS actually has the honor of the worst IT company to work for. CSC has be better than somebody. Not by much of course.
CSC seems to be outsourcing work that requires the latest technical expertise to companies like AT&T, IBM, EMC, VMWare, Hewlett-Packard; & buying small companies like ServiceMesh; has decided it doesn't want to go after Government work where it would be the prime (management expertise needed).
The Big Data, cloud, and cyber appear to be growing intermittently.
The government is holding just about all new contract awards.
CSC is losing work to recompetes.
Its moving the work and jobs to "Low cost locations" meaning India and Louisiana.
Commercial is moving - much
Consulting has crashed.
NPS is contracting.
So what happens next?
In its present state CSC is not a $90 stock or an $80 or even $50 stock.
If this persists for more than say two quarters AND have economic growth pick up and CSC will be headed to the boneyard.
Am I missing something here?
Is there analytical, objective, empirical data for unbounded optimism or even hope?
Sentiment: Strong Sell
Sorry dropped a "0" that should have been 12,000 share in 110 trades or about 109 shares per trade.
I guess Lawrie didn't want to alert anyone to what he was doing, so he did a lot of little trades in order to fly under the radar of most people.
Sentiment: Strong Sell
You mention Lawrie has sold 1200 shares through 110 trades. Does this mean each trade is about 10 shares of stock ?
It seems to not be a great idea to be buying back $140 million of stock when it is near it's 5 year high, but I guess the point is to get the stock price up, despite bad ways of doing it.
Some of the improvement, which they don't mention, is due to selling off assets, anything that isn't nailed down, get it off the books for whatever cash you can get. Just not sustainable.
I meant support not resistance.
Still has knifed through:
and heading lower.
Perhaps much, much, much lower.
When it gets down to $45 yet again (or may be even $28) that is when the vultures MIGHT start circling again. Then it is a real BUY.
Sentiment: Strong Sell