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Xyratex Ltd. (XRTX) Message Board

  • davidduke5000 davidduke5000 Apr 2, 2013 6:11 PM Flag

    BAD OMEN

    From the way things happening and the sacking of Steve Barber, expect the stock to tank after earning, possibly below $7 with weak outlook.

    It will be difficult to sell the company, Steve Barber should have worked on it 2 years ago.

    It is going to take at least 2 more years to get it in shape to sell the business.

    Not good at all.

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    • What's bad about this? Barber saw the stock drop from $17 to $7/share. He didn't allow any independent oversight and the CFO was also on the board. I know people fear change and uncertainty but if Harvard Business School lives up to its reputation, this could be the start of something big.

      • 1 Reply to what_to_do34
      • I have been around a long time, and you do not fire your CEO a week before the earning report. this alone could send the stock down 75 cents if not more., I am not worried that the company may fail, but the investment could be dead money for a while.

        I could be wrong, but firing Barber at such a short time before earnings and install Vadim as a director along with another director from his group, a man they ridiculed 3 month ago and blew $40 millions to keep him at bay end up a director while the CEO is out.

        I simply find it very strange.

    • I wouldn't be surprised to see in the coming weeks XRTX rally on this. Ya never know. Often a CEO leaving to allow company to "unlock" shareholder value is looked upon favorably in the market.

      • 1 Reply to cben15606
      • I agree. Case in point OMPI which I owned before the merger announcement. It struggled at first, but the major shareholder eventually force the sale of the company. The controlling shareholder is not going to see their investment be beaten up for long. I believe that's why Barber left. He was not for the sale of the company. Cray makes more sense now than ever. The just appointed a new director. IMO hypothetically a more likely stock deal than cash deal.

    • The stock price may or may not tank. Knowing XRTX probably so in which case you would get your reentry point and I'll be adding as well.

      But I disagree with some of what you say. 2 years ago it was well known that Netapp was going away, HDD was in worse shape before their restructuring and Clusterstor was a pipedream. Today they are still losing Netapp(no change there), HDD is profitable again and they are ramping new product lines with both big OEMs and Clusterstor. And DDN is a Clusterstor competitor in the HPC/Big data storage space and it was recently showcased as being valued at $1B based on latest fundraising(NYtimes, CNBC etc).

      It will be interesting to see where this goes for sure as HPC and big data are pretty hot investment themes but Baker St has expressed the desire to cut back on Clusterstor R&D. Either way though, XRTX is worth a good bit more than a fraction of book value.

      • 1 Reply to cben15606
      • If you remember Vadim said in his letter that R&D should be chopped and to get rid of parts of the company.

        I tell you what is bothering me about this, why spend good money on extravagant dividends when your cash is low, I am not complaining that they paid me $20,000 in December, but what if the next 2 to 3 QTR the company lose money instead of making, this will cause a cash shortage, while Barber blew $40 millions 3 month before..

        Why Barber let go so fast" isn't to throw the blame on his if the QTR was disastrous.

        Before I go back in, I have to make sure that the new CEO would not be from the UK, they are cold blooded and would not care losing the shareholders money simply because they are stubborn.

 
XRTX
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