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What Is Wrong???
by: myopinions1
1891 of 1892
I have been an investor in IDC for many years now. I have traded the stock on
occasion, but for the most part I have been a buy and hold investor. Therefore, I
have not only lost money on my investment in IDC, but my investment in IDC
has a HUGE "opportunity cost" if I compare the performance of my investment
with the return that I would have seen in the S&P, NASDAQ, or the telecom
sector.
My question (which more a rhetorical question than anything else) is, "What has
gone wrong?" Does IDC have poor quality product? Is their a conspiracy
among the telecom sector to exclude IDC? Or is IDC's management "less then
competent"?
I consider myself to be a reasonably bright guy. I have spoken to people who
work for IDC (along with some former IDC employees) and people in the
financial industry and people in the telecom sector. I have gone to some of
IDC's annual meetings and spoken at length with some of the company's
engineers and managers.
I am not an electrical engineer and can get lost in the technical jargon, but I
consider myself to be a good enough judge of character to determine that the
IDC engineers sincerely believe that their technology will/can/does work
better/faster/more efficiently than the competition (notice I did NOT include
CHEAPER). I have heard similar comments from others in the industry.
Therefore, I am forced to conclude that IDC's managers are telling the truth
when they claim to have a first-class product.
Although I am not an engineer, I am a lawyer, with a reasonable background in
international trade. I can not accept the argument that the rest of the telecom
industry is blocking IDC for achieving economic success. I base this on a
personal understanding of the industry along with some common sense. If IDC
truly had a better mouse-trap then the industry would want to buy it out, not
freeze it out.
That leads me to the final option. IDC is cursed with weak managers who
would rather listen to their own fables of "progress" and close encounters with
victory than study the impact that their administration has had on their
investor's wallets.
IDC's management has FAILED to deliver value to its shareholders. The price
of the stock is roughly 50% of the average price during the current chairman's
first 30 days in office. During the same 2 ½ years, every index is up -
considerably. The current President claims that we, "Do not need a CEO", yet
he has been unsuccessful in generating wealth for the shareholders. Something
is wrong!
I think it is high time for IDC's current managers to produce - or hand the baton
over to someone else. If they can produce results, great! If they can not, they
should resign with grace. I do not want to see a bloody fight for control next
Spring at the annual meeting, but if we are still trading below our value when
this management team came on board, I will vote against any board member up
for re-election and will most likely oppose any management proposal.
I hope that management pulls a major success out of their hat and we all live
happily ever after - but at this stage I am not looking forward to the next 6
months.
That's My Opinion |
