Why is a company that is trying to transform itself continue to buy back stock and pay a dividend?
Should they not keep the cash to fund the transformation and new business opportunities?
I suspect they are having a lot of issues and the transformation is not going well so they try and buy back stock and continue to issue dividends to hopefully try and cover it up as much as they can but stock continues to drop...and drop...and drop...hey new low....and drop.
Same with their competition, Pitney Bowes.
Both are old school "paper pushers" that in this new tech environment have no clue what to do to really transform themselves.
Management compensation is heavily dependent on stock price thru annual option awards. Each time those options are created, the outstanding stocks are diluted. Buying back is the only way to keep the numbers from exploding. Remember that ACS was purchased with a HUGE stock offering.
If someone feels compelled to buy XRX, they need to check out the huge increase in outstanding shares. 2002 - 740 million shares. 2009 - 870 million shares. 2012 - 1.3 BILLION shares. Look it up. 2009 is when Ursula bought ACS.