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Subject:  Re: face plant Date:  7/13/2018  12:17 PM
Author:  GreenMartianX Number:  2793 of 3782

this from a RJ report but it mirrors common sense and reflective of other things you can infer:

*next BH in tech, or the next GE (ouch!)
*acquisition is a clear sign consolidation going to to in other areas of tech with causes 3 concerns:

1 - indicates management not committed to strategy of generating and returning FCF to investors (e.g., my thought on the buyback), so this reflects on management's credibility

2 - this acquisition is outside of networking semiconductors and nobody has an idea if the strategy will be successful or not

3 - multiple assignment

Or, management credibility, execution risk, and multiple

I have few thoughts other than if nothing weird happens then these issues will maybe resolve themselves as the above is more confused evaluations - ala my thoughts about a frozen position - than bad fundamentals. or, as you said:

Essentially the strategy is to arbitrage the tech industries over-infatuation with (organic) growth (which leads to sh1t businesses being built along side amazing ones), and he then simply cobbles together a tech empire of high ROIC businesses with limited reinvestment opptys, and prints money.

Maybe buying out IBM is next...

I not tempted to sell the shares, but wished I'd waited a week, which is almost as bad.


the analyst called it 'angry selling'
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