Redhead - i was referring to the 4% security compliance cost next year that will come out of revs as cited in the last conference call
Well, that blows the hell out of that theory doesn't it? Thought Soros was a big enough fish to drive this further. Apparently, it will take someone of more messianic caliber to goose this thing.
Is the hit on revs that everyone is worked up about. But hey, everyone knew this a month ago didn't they. I think the CFO thing was what brought it down and then the media decided to pile on with the old CIA gig. Up from here short term, Qualified CFOs are a dime a dozen.
Balance sheet wise, this is a non event. The tax liability will turn into an expense. It's a good thing but I don't think it is moving the stock.
Daisy - My take on this is that it is similar to "repatriated" earnings. As you know, CSCO has billions tied up in retained earnings that are subject to US tax if the funds are brought back to the states. I guess once TEVA pays the tax they can use the repatriated funds for anything they want, i.e. acquisitions, investments, disbursement via increased or special dividend. I am of the opinion that they do not do a special dividend unless there is a special event like a takeover or merger in order to appease the shareholders.
A better entry point would have been when GS issued their sell. Bernstein out today so I am a tad skeptical. Where were they a couple weeks ago when it was $1.50 less?
Smart money (specialists are already in). Dumb money (mutual funds) are scaling out. Once the dumb money is out, we go back up.
Could be that this relationship is a tad cozier than most think? Maybe Levin bolted because he didn't like the prospect of becoming a divisional VP?
Once some good news comes out, GS will do the bait and switch routine. I remember Ms Rubin in particular doing this with PFE a few years back. Now go make some money!!
The market makers are already all in. Who do you think has been driving the volume over the last 4 days? Certainly not us pikers!! Stock will now continue higher until equilibrium is hit or exceeded. And that is when they will exit. Gradual climb from here will be at lower than normal volumes and at a relatively slow pace. Remember the market specialist must buy at wholesale and sell at retail. Goldman is very good at this. That is why our buy signal was issued when Ms. Rubin issued her sell. You really think they are that stupid?
Oh, that's quite alright mdb. What do you think? Maybe back to between $3 and $4 like in '96?
Agreed. If you are a little scared you may want to consider selling the Nov 37.50 puts with the premium near $1.
Yes, I agree there is turmoil. But you have to remember that there are still 45K dedicated and talented souls that work for the company. Give them some credit. The company isn't going to tank tomorrow. Neither you or I or the analyst crowd know exactly what happened in that boardroom. Who knows, maybe they are planning a major divestiture or acquisition that Levin was opposed to. Or maybe Levin was behaving like Mark Hurd of HP. I really do not believe what Frost said, that their differences were mere nuances. It is much bigger than that I am sure. The real reasons will come out in time, but for now all I know is that the hard evidence (relative price, dividend, value metrics, trading profile, etc) tell me this is a buy. I may be wrong but I would rather base my opinion on hard facts than innuendos and emotional accusations like the ones we heard in the conference call by Ms. Rubin on Wed. And thanks for my dividend!