They are in deep trouble as currently structured. They are a cost center burning gobs of cash. The entire concept of this company as a stand-alone entity is flawed and exposed to far too much risk.
Freddy Kreuger nipping at your heels w/razor hands kind of terrifying. Especially after this last quarter, to have no sense at all as to how the March quarter will turn out ? They have no idea how bad things are or are going to be. They are whistling past the graveyard w/regard to both China and Volkswagen.
just announced. Feel a cold stack on the idle rig coming before much longer. That's the right thing to do. Stock would be cheap below $3 U.S. and perhaps worth a small initial stake for long term holders. Would never want it to be over 1% or 2% of an overall portfolio however. It's still not the cheapest stock in the universe, but at $2 and change it would be reasonable as a very small speculative bet that the Saudis could yield sometime in 2018.
what a debacle, all on the current Chairman/Interim CEO/President's "watch". I use the word watch loosely. Not sure anyone there has been watching anything, least of all the cash balance.
They should have removed the Board when they had the chance, but you can't tell institutions anything. Very few are really truly activist. Easier just to be resigned. They will ride it all the way down.
Imagine a few expletives flew a couple weeks ago when the directors saw the preliminary estimates of how much cash had fallen in the quarter.
unfortunately, employees almost never see the risk ahead of time. Investors are either diversified or can recover from a loss, or know how to follow cash flow statements over time and see the unwind coming. The Main Street impact is always much worse than the Wall St. impact.
one phone on the wall of the kitchen, one used car, drove once a year to a National forest and pitched tent for vacation. Dining at a restaurant was reserved for a birthday or anniversary. Everyone has gotten spoiled expecting 10% annual portfolio returns. Cash is king, not all the time, but on very rare occasions. Now is one such occasion.
Agree. Except almost every broker, every bulge bracket firm, every strategist advises even seniors to have exposure to the stock market. But given the risk in this cycle, a possible recessionary meltdown and liquidity/currency crisis, hedge fund redemption calls, I have no argument w/any retiree wanting to be 100% cash. When the computer algorithms take over trading there is no safety net for equities.
The two biggest risks, really for most technology and small cap stocks as well, are going to be margin liquidation and redemption calls on hedge funds. Feels like late 2008 playing out again and picking up steam. Some hedge funds re going to see AUM cut in half from a year ago.
If you are heavily weighted toward any of: small caps, energy, materials, industrials, cyclicals, emerging markets, 3D companies--your investment portfolio has likely taken a 30-50% hit. That pushes retirement plans from 65 years old to at least 75 years old. The average American male lives to be 76 years.
And now the Chairman is running the show and getting 100,000 stock options and 25,000 shares of restricted stock for doing so, well for part of the year at least. The same guy that has failed to enhance shareholder value during the entire seven-year auto upcycle, and failed to put in place a solid, cohesive and stable management team. He's the Chairman, the leader of the company in terms of oversight and game plan. It has been seven years of epic failure. A betting man would bet that his just announced options will expire worthless, and possibly his restricted stock as well.