what is driving this stock down today. Some of it
may be a correction from those awesome days last
week. Some of it may be delayed fallout from the CEO
nonnews (and yes, word of a new CEO will help when it
comes, let's hope it's sooner rather than later.) Some
of it may be technical--chart watchers saying that
the stock has to go down to a certian level before it
rises and then making sure that it does.
say we need to stay the course and either ride this
out or see it as a buying opportunity (wish I could
afford to buy more!) We have a great company and, in the
long run, I still believe that's what moves a stock.
As I said before, the product leadership (and
today's news added to that), the balance sheet, and the
P/E ratio are on our side and would bring in many
sensible investors, institutional and otherwise. We may
need a bit more time, though, to abosrb the CEO
Long_bbb has reminded us how fickle and irrational these
markets can be and there's no reason for INTU to be
exempt from some of this craziness. These gyrations are
INTU is selling a lot of
merchandise now because of the new Quicken products and will
sell a lot more in the coming months because it is tax
Today should, at least, not be a dull day.
Thank you for all your encouraging
Like many of you, I still think this is a great
company and will reocver. Still, I think the burden is on
them to explain themselves a little more. The idea of
declaring a dividend is a good one. I think we do need to
press them on why they chose share dilution rather than
cash purchase for the mortgage company.
something they need to realize: They see the whole picture
and how all the pieces fit together. We do not. When
we see a 3:1 split announced, then a couple of weeks
later a resignation of a CEO then a couple of weeks
later this acquisition with share dilution, it is easy
to come to all kinds of conclusions on how the
pieces fit together. Who knows if any of these
conclusions are true? True or not, Wall Street does not like
surprises of this nature.
I will try to call someone
at the company (I left a message in IR yesterday
just before I sent the fax). I think the approach I
will take is this: I (and many others) invested in
this company because we saw the company with product
leadership, good decisions, and all the other strengths I
told them about it my fax. That view is in doubt now.
It is up to them to come back to the financial
community and explain that it is, indeed, that
I have done this kind of thing with another company
(much smaller) and I think these efforts will pay
Anyone planning on going to the annual meeting? Is it in
November? Anyone planning on speaking there if you go? I
don't think that I will be able to go, but maybe I'll
A dynamic CEO would give this stock a much needed
boost and some direction.Could you imagine what an
imaginative CEO could do with that kind of cash.One wishes
these people on the board would choose someone who is
keen on the Ecommerce.The business to business special
software packages would be profitable.We will have to be
patient and wait and see. Good Luck
Ask him why they always decide to dilute the
existing shareholders instead of using some of that
billion dollar cash hoard to buy these companies. Is it
because INTU thinks its stock is worth less than cash?
Apparently so. They did the same thing last year when they
acquired Lacerte. I don't know what the hell they are
saving that cash for. How about a special dividend to
current holders to offset the impact of the extra shares?
How about $3.00 a share? That still leaves them with
$6.00/share to hold on to for their mysterious reasons.
your letter was very well written and eloquent. i
hope you get a response soon and share with us. i have
not lost the faith in intu though, and i believe it
is still making good moves overall. look at wcom.
it's stock dropped from highs of 96 to 66 this week
after announcing it's buy of sprint. does the drastic
change in it's stock price mean the co is not a good co.
any longer? of course not. and look where it closed
today, just a few days later. any time there is a
material change in any co. it is going to spook some
investors and cause valid questions to be asked as well as
a temporary drop in the stock price. as long as all
is above board and the co. has a gameplan to move
forward, the stock will recover. i think this is the case
with intu right now. buy with both hands at these low
prices because in feb or march we will be in the high
p.s. here is a post i made on another board that i
thought might interest some of you:
Date: Fri, 08 October 1999 12:36 AM EDT
well, intu is sure getting interesting lately. first
the ceo leaves right after a 3 for 1 split is
announced. today they announce aquisition of 10/07: Intuit
acquires Rock Financial for $370 mln . the last earnings
report of INTU surprised to the upside by several cents
per share. the stock was as low as around 68.00 in
august and as high as 110.00 in sept.
it closed at 27, or 81 presplit. i had sold the oct
28.33 puts for 4.00 and thought i was out of the woods
for sure, but now it looks like i just may have the
stock put to me which is ok as i will own a great co.
at a great price. i read many message boards and
something very interesting has developed. on many of the
boards i read lately, there has been extended discussion
about cap gain taxes, how to figure, when a loss
be taken, etc etc... now, if people are beginning to
think in that direction already, just imagine what kind
of sales turbo tax will have this tax season!!! the
dip we are seeing now on INTU makes it a screaming
buy and i expect to see it in the high 40's by
february or march.........ub
A tip of the long_bbb hat to
While we agree to disagree on many
issues, it is an extremely well written
Furthermore, I applaud you for having the "noogas" to send it.
I hope you receive a response, and if so, please
share with the group.
hey people- this is a great deal. intuit is
building for the future. Sure there is a short term
decline due to the additional shares and short term
dilutive effect on EPS ( 3 cents they said) . Who is so
sharp here that they know this is a bad deal. Come on
-- yeah the stock went down and yeah I bought at 27
1/8. A year from now you will be saying this was the
best deal they made in 99. They are building an
internet franchise. EGRP did it with the bank merger and
MCI- WCOM didn't shrink from buying Sprint. So please
don't reaction to market reaction-- look at it
objectively. It seems to be a great long term deal.
I think (hope?) that INTU is still a great
company that just kind of got a little off for a short
time. Maybe Mr. Harris had gotten a little too
acuqisition-happy and then this happened. Who konws. We probably
never will know.
What we need to know is the
vision of this company and what they plan to do to
accomplish that vision.
I certainly believe the
company can--and almost certainly will emerge from all
this and rise to prominence again.
read somewhere that the annual meeting for Intuit is
in November. I most likely will not be able to
attend, but I hope that others will.
I too brought for the split, however I feel that
we were lead down the path, to put it mildly. Being
down over 20% overall stinks. I hope the Intuit IR get
in gear release some positive statements. It seems
Harris know something we did not. I agree with your