I wonder what kind of money that will save.
100 k per employee translates to $1.6 billion. That's a larger cut than capex. I don't know if it's reasonable to consider that it may translate to another $600 million to $1 billion Free Cash flow. I would judge this is actually really good news today - for the stockholders - my sympathies to those who got/get laid off.
To be honest, I am not all that concerned with the cost savings. I have to figure that Sidgmore knows what he is doing. What I like is the fact that the strong knife cutting of fat has started...actually continuing, and that sends a very positive signal, IMO, to the markets. And that's reflective of Sidgmore's reputation.
Don't like the action on the stock lately. Lightened my load a bit yesterday in the interest of capital and profit preservation although it pains me to do so. It's really getting nuts again. I'm sure most sellers are getting out at a loss by now. You gotta wonder. You will never make money buying high selling low. Irrationality has a very firm grip on WCOM right now.
I sold most of my shares at $1.60. I knew there would be a retest of the $1.08 low. What I didn't understand is the comments of the one poster who was calling for a 50% retrace...hadn't heard that one before. The retest is the the thing now........that's what everyone is waiting to see. Even with today's good news, no one cares until we know that WCOM has put in its bottom. Putting in a bottom is a slow and frustrating process but once the retest is done, I will be a buyer again.
Meanwhile Q is hanging in @ over $5. As I say you gotta wonder.
I think this sector no longer trades as a sector....its every stock for itself. <g> I really try not to pay too much attention to correlations between stocks.........they rarely stay constant over time. With WCOM, everything depends on how savvy Sidgmore is.......if he knows how to do the right stuff, he will move the markets and there will be buyers of WCOM. So far, I think they are doing things pretty right on.......not too hot and not to cold, but just right. <g>
ted |
