Companies like Ciber are out of favor right now because they cannot provide THE STREET with any evidence that they can turn it around. As I have noted for several months the only way for these companies to build value for their shareholders is to merge or be acquired. With the recent purchase of PW by HP maybe this will start happening and an influx of new ideas and enthusiasm will result. Maybe then can they weather this Un-Perfect Storm.
Companies with vision understand the accretive value (employee careers, customer expansion, shareholder wealth) appropriate business combinations can provide thru m&a. Slingerlend is a banker and Bob Stevenson a 'staffing guy', whose vision of m&a has created the current condition. There idea of vision is, what can we do to create a buzz and raise the share price. Evidence, the constant change in corporate direction, frivolous press releases and lack of leadership.
Have any of you shareholders received any communication from CIBER's executive leadership, explaining the value of there 4-CIBER strategy? Dates? The answer is no, why? because as Mac's brainchild, this scheme has completely exploded in his face. The value of digitera is $.50 (have you witnessed the ERP market lately), agilera equity is now 25% (they cannot distance themselves fast enough from Mac) and IP/H20stone is anyones guese.
How can you make a MAJOR announcement in march to devide a $700-Million business entity and not explain value to your shareholders? Some companies send out shareholder apologies if they don't grow by 15% in a year. CIBER has eroded it's stock value by 75% in 9 months and these clowns are sponsoring $1-Million golf tournaments and paying for purple 'i' TV ads. I have never witnessed such poor senior leadership, questionable financial practices(recent 10KT)and a complete disregard for shareholder value.
The shellgame is over this quarter, no more fiscal year accounting changes, no more Y2K woes, no more 1-Ciber e-Business framework, no more 'we are transitioning', just the vision Mac&Bobby and the revenue growth that is sure to bring a return to shareholder value.
I repeat, Ciber is irrepairably broken and needs 'outside' correcting. Canning Slingerlend will not even solve their problems, besides maybe his banking skills can finally be put to use for shareholders by selling this relic or dealing with solvency - whichever comes first.
My experience is that the public staffing companies do not communicate well with the shareholders. They are too used to running their own show and do not want "outsiders" meddling in their business. The problem as identified is lack of vision and if there is one, the lack of the ability to communicate it to the shareholders or the employees. The market will turn around as companies realize they cannot hire all the fulltimers they need. Lets only hope that all the good people have not abandoned the staffing ship by then.
With the stock erosion in this industry you would think buy offers would be knocking the doors down.