FROM Stock Monkey today...
Restructuring Is Painful, But Necessary
I also think it’s good to see Qualcomm finally taking action on its share-based compensation, something I have taken issue with for some time. The company’s earnings are repeatedly hurt by a significant amount each quarter because of its lucrative stock awards. For example, in fiscal 2014 the company’s earnings were hit to the tune of $0.50 per share just because of share-based compensation. This year is expected to be even worse–$0.52 per share.
As a result, I was relieved to see the company get serious about its bloated cost structure. Going forward, Qualcomm will reduce its stock compensation by $300 million annually.
Barry's answer has been to raise debt and deploy that cash for buybacks. Something that only modestly aims to curb the excessive dilution in shares we've seen from executive compensation packages over the years. Spending money on buybacks is a great idea, when you have growth opportunities in place and meaningful runway. When you don't, well, that's some short-term financial engineering at its best.
For years and years top executives have feathered their nest at OUR expense by getting outrageous stick option. A huge percentage of the annual stock buyback program has gone to cover executive stock giveaways. Management of the company have become FAT LAZY STUPID and GREEDY. It is time for stockholders to call them to the carpet. DO IT! PUSH management. Be an active stockholder it is YOUR money they are wasting.
I read somewhere not to long ago that this company wastefully buys back stock so that they can give management excessive options thus stockholders get the royal shaft. Can anyone confirm this,,,,that they are about the worst major company in this regard??? If this is true to the extent I have read then it might be time to sell this stock after well over a decade.
Like I said, great company, great future, great dividend. I hope those who gave a thumbs down on my post have second thoughts about this company.
great company, great future, great dividend. Buy and hold until the story changes....and don't forget to reinvest the hefty dividends. I bought my shares in 2003 at $ 10.71 a share and will be here holding a bundle when I doe. My grandchildren will love it!
Thank you traders for paying the capital gains taxes that keep our great country great while I compound my wealth reinvesting...
Yes, I agree with you. graphene will be a disruptive technology in many fields in the future. I am sure ERII is aware of this and will work to either works with it or work around it somehow. I have held this stock for well over six years and am still underwater. It pops around all the time. Hopefully management has settled down and will find a way to make the O&G segment work. Desal. is fine but ERII's part in it is a tiny, almost inconsequential fraction of building a plant and plants take a decade to get approved and implement and to have 100 or even a thousand built would hardly make ERII a successful company.
The hopes I had for ERII have been tempered by the realities of business. I am hanging on but don't have much reason to.
I am looking at 390% profit on my shares which I bought in 2003. Sensible, profit minded investors buy and hold good companies for decades. This stock will be in my portfolio upon my death with all dividends reinvested and my profits compounding. Thank you traders for paying tax on your profits as you move in and out of stocks...you help keep our tax coffers filled. I do not pay any capital gains taxes because I do not sell. Real wealth is through compounding decade after decade. Common sense for the common man. Good luck to all!