Symantec - NO Further Asset Sales - More Acquisitions and Investment Ahead
This is definitely not good news and is probably going to mute any remaining upside. I'll spare the detailed commentary until more data and the call concludes, but this is simply not good nor do I expect it to be received well. A lot of players got into the shares on expectation of major divestitures.
Also, 50% of cash is going to be either re-invested or used for acquisitions. This is a bit on the steep side of what I had hoped for and more exposed than what it "felt" like analysts were looking for in their reports.
It is good there will be business unit consolidation, but again, that brings with it disruption and is therefore not without negative risks. It needs to be done though.
My personal favorite so is a large scale reduction in management. Trust me when I say this is going to be welcomed news by all Symantec employees. The company had become so grossly over bloated in the middle management layers it was absolutely absurd. But again, with all this cost cutting and reorganizing there will clearly be disruptive risks and negative impacts to manage.
This is turning into a mixed bag so far, and definitely not a strategy without risk or one that is going to materialize and stabilize in less than a number of years. But at least things are on a better course.
Investor reaction to all this could end up being flat or even negative to shares, which would explain why the company was managing the release of positive information before hand. Which isn't necessarily bad given the extreme extension on the shares the last week. We'll have to wait and see what the call holds and if any levity is going to surface or not...
symantec pays good but not exorbitant severence pay when compared to industry standards. There is disruption to life, relocation and numerous other issues because of which employees terminated for reasons besides gross misconduct do deserve to be compensated. In India, they paid me 3 months salary and I vested my options @ 15.75 which did not yield anything all these years -but should yield something if the stock takes off. IMO -no matter what happens to the employees, their grants are headed in the right direction under Bennet.
What did you expect, LT? It's going to cost a lot of money to send the useless redundant management packing. Just think about how big a slice of that $275 mil Janice will be getting for her GTFO payoff. Better to pay them to get lost than keep paying them year after year for little to no ROI, as has been the case for years for many.