-Organization had become fat with too many managers. -Middle managers earn more bonuses, stock options and better salary increase than those on the grassroots such as top notch consultants and skillfull developers. Turnover at the lower level is high and significant. Not a good sign if the brains kept constantly sneaking away going to another software firm. Earnings are being suck by lavish and non-revenue management employees. -Promotions by popularity and visibility not by skills and capabilities. This will result to low morale and poor service quality. -significant expenditures draining earnings such as quarterly meetings but actually were merely parties and entertainment expenses incurred by managers. -loose control on hiring employees. -many consultants were on the bench (no assignments) draining earnings.
I agree psft will be a good stock next year, but for now it will be flat or drift down. Too many risks: possible restatement due to SEC review, lawsuits, possible management insider violations with the little guys left holding the bag, etc. In terms of timing, by late summer we might have a cleared the bottom, made a solid base and see the thing start trending up. Right as far as I'm concerned this is damaged goods.