Anonymous204488, ballers gonna ball
7 replies (most recent on top)
JANA lost their pants, IMHO, the day the info leaked that QCOM had purchased a new corporate jet, and JANA didn't bat an eyelash. There are some things you just don't DO when you tell shareholders you're going to "trim the fat."
@Anonymous203841: "...Qualcomm allocated $11.2 million to share repurchases during the year ended in September." This sounds a bit understated, $11.2M doesn't sound very damaging at all.
Just ANother Asshole. JANA
Qualcomm (NASDAQ:QCOM) is another company that has done material damage to investors with its share buybacks over the last several years. The company is losing ground in the always changing chips industry, and sales declined 18% during the September quarter. For the coming quarter, Qualcomm is expecting a big annual decline in revenue of between 15% and 27%.
Qualcomm stock has lost over 10% including dividends since 2013, and the stock has declined over 25% in the last year alone. Management is investing big sums of money in stock buybacks, Qualcomm allocated $11.2 million to share repurchases during the year ended in September. However, that money would arguably be better invested in research and development to jump-start growth.
Repurchases are neither a good or bad thing for investors on a stand-alone basis. Depending on factors like the company's fundamentals and the valuation of the stock, they can be an efficient way to distribute capital to investors or a destructive policy focused on short term goals. Now that buybacks are very much in fashion, it's increasingly important to differentiate the smart from the destructive ones.
More like: Who's JANA?
Yeah FVCK JANA