i think the majority of bad news is behind us... This is the second quarter that i am seeing a spike in the share price....
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Be prepared for the next lay off around the FY earnings call. Stop to believe you are safe ... major mistake !
@8tqy Troll better scrub. It's like you're not even trying.
NetApp S---s and is being run into the ground by the Doon Coon himself George Kurian otherwise know as El'Jorge
Well hopefully you are right about no more layoffs. However, my point stands - the stock gains have come on the backs of those laid off.
Which is fine, economics are what they are, and all big companies are like thus. But don't anyone pretend a the vaunted NetApp Culture is dead. Has been for at least 5 years. Leadership and Innovation have given way to protecting executive stock grants. So make sure to look out for #1 yourself. Our execs certainly are doing just that, so why can't we?
Read the transcript Q3 FY 16
http://files.shareholder.com/downloads/NTAP/3246343098x0x875968/C8F65CC5-E0E5-450B-B7E7-B94B0EF2BB56/NTAP_Q3_FY16_Transcript.pdf
This says the cost base needs to be reduced by $400million by end of fiscal 2017
The 12% RIF on Feb 17 2016 brought in $200 million of savings
The 6% RIF on Nov 3 2016 brought in a savings of $130 millions.
Against the target of $400 million this is $330 million.
So this would mean the majority of the layoffs for fiscal 2017 is behind us.
Hopefully the voluntary attrition add up to a saving of $70million.
Are you paying attention to the quarterly reports at all? Paraphrasing:
NetApp sales continue to s-u-c-k. Our profit margins on what little we do manage to sell also s-u-c-k. We only made a (on paper) profit because we cut heads AGAIN. But don't worry, investors, no matter what happens, we'll continue to make a (on paper) profit because we are going to continue cutting heads! And even if we don't, we pay you generous dividends. Come feast on our carcass
Stock price spike is just churn-and-burn players taking GK up on his offer. Don't be fooled (by the way, stock price has been deflating back down all day as the market takes its quick profit). What's good for investors is generally not good for the company or the employees.
On a positive note, now is the time to use the same investing strategy yourself. Ride the carcass as long as needed, gain knowledge, experience, and contacts, then flip yourself to the next good opportunity. You are your own largest investment.
Hope so. Have you read the next topic which talks about next one in Jan.