Tuesday, 2 June 2015

Finally, an analyst gives a business view of CSC



While some of the spreadsheet-focused financial analysts continue to upgrade their outlook for CSC,  Adam Hartung writes a business analysis in the Forbes magazine, that shows just how wrong they are.

It is quite damning.

http://www.forbes.com/sites/adamhartung/2015/05/31/csc-when-all-else-fails-split/

We have had comments from a number of current and former CSC insiders on the Forbes article. Many different slants and perspectives, but an overwhelming majority said they think Forbes has got it right.


There is nothing more we need say about it; the article speaks for itself.

40 comments:

Anonymous said...

The article is a third party affirmation of what has been discussed time and again on Cassandra - the word is out.

Lawrie and Laphen along with their entourage have brought a once great company to the brink. Hopefully, it and the dedicated employees who have invested years of their lives to build it, won't be left out in the cold.

Anonymous said...

Hartung offers an accurate dissection of the structural and dynamic (too little, too late) deficiencies that militate against CSC from achieving economic viability long term. Revenue is flat and Lawrie’s reliance on cost takeouts (layoffs) with its sequela of decimating employee morale is not exactly a marketing strategy that a company dangles before potential buyers.
As an aside, I couldn’t help notice a LinkedIn article that appears directed toward CSC and its performance within New York State (if one reads between the lines). I believe CSC handles the New York Medicaid program: https://www.linkedin.com/pulse/whos-watching-watcher-rafael-sosa?trk=prof-post

Anonymous said...

+1

Anonymous said...

Just look at his other articles. He doesn't like split-ups. With that it just bullying and he doesn't give a new angle or insight.

Anonymous said...

Mikey, don't try to put lipstick on this pig. We know it's you.

Anonymous said...

Read the article and not sure who's the real villain but could be a marriage made in heaven. Overseer doesn't take notice of infractions (or doesn't care). CSC continues under business as usual and, let's face it, they're simply doing what they're directed and paid to do.

Anonymous said...

An additional affirmation of the degree to which current decision makers have been trying to sell the company, but without success: http://seekingalpha.com/news/2563096-bloomberg-hp-was-close-to-acquiring-csc-walked-away?uprof=82&dr=1#email_link

Anonymous said...

HP? Wow, CSC staff had a narrow escape there. There is no way anyone would have survived that - HP is about the only place that's a bigger bloodbath than CSC right now.

I am surprised that HP even considered it, I know that they have singularly failed to grow but buying CSC for its contracts would never have paid off once you'd had to "restructure" 70,000 staff.

Anonymous said...

Seems the story about NPS being sold for cash and hence Mikey not wanting to be CEO of it is true:

http://seekingalpha.com/news/2563416-reuters-caci-leidos-booz-eye-cscs-u-s-public-sector-unit?uprof=46&dr=1#email_link

What a surprise...not!

Anonymous said...

In the last 2 months, Lawrie has sold 60,669 CSC shares for $4m, and now Deckelman has sold over 50% of his holding, 51,414 shares for $3.5m ...looks like the powers that be are totally convinced about the new "strategy" then?! http://finance.yahoo.com/q/it?s=CSC+Insider+Transactions

Anonymous said...

May be getting closer to a sale - more from Reuters:

http://www.reuters.com/article/2015/06/04/us-computer-science-m-a-idUSKBN0OK2L020150604?type=companyNews

Anonymous said...

Vultures hovering around CSC public sector USA...

the carcass that will be left - food for the bone crunching hyenas...

What a sorry state of affair for none USA CSC employees..... or should I say full time employees (FTE) - makes it more palatable when careers ended prematurely...

Anonymous said...

While CSC's revenue may be flat, Lawrie's is anything but: he's just flogged off a load more shares.

Kerching!

Anonymous said...

Looks like Laphen and Mancuso have settled with SEC and have to return their compensation and pay fines - $750k for Laphen.

Anonymous said...

Chump change for him ... according to his employment contract, he will be receiving 88K per month (yes, per month) plus health care and free legal for the rest of his life ... you can confirm by digging back into Cassandra a couple of years - there is a .pdf of the document ....

Anonymous said...

Health care only until he reaches age for Medicare which was ridiculous to begin with. I know him….he will hate paying out the $3.7M for compensation and the $750k for penalties. Of course if you're right and CSC pays for legal and his penalty he walks away and lives out his life in his Palm Beach mansion playing golf and sitting on corporate boards for big $s.

Years ago when he was our F&A director and then F&A VP he cared about CSC, the employees and he had ethics. He always seemed to be a good guy. Don't know whether it was greed or ego but he sold out and destroyed the company allowing Mike Laurie to finish it off. I can no longer defend him although I did for years. All respect is gone. I do believe that he feels shame for what he's done.

Anonymous said...

I wonder if Laphen feels any shame for what he has done. From circa 2000 he gave the impression he has willing to destroy anything and anybody who might get in the way of his obsessive quest to become CEO.

I reckon his real punishment will come from the "great and the good" of Corporate Boards, golf clubs and charity event circuits he craved acceptance from. He knows that the conversations behind his back will be "See that big guy over there? That's Mike Laphen. He was CEO of CSC for 5 years; almost destroyed the company and destroyed the careers of many employees. He was eventually terminated, then had a lawsuit brought against him for misleading shareholders. CSC settled the lawsuit, so he dodged that bullet, but then the SEC nailed him over accounting fraud".

I cannot see Corporate Boards being enthusiastic about asking Laphen to join them now with those the SEC charges in his CV.

That's what Laphen will live with for the rest of his life. That's his real punishment.

Anonymous said...

I'm sure he's weeping in to his waffles.....whilst checking his bank balance

Anonymous said...

Over the last 3 yrs, Lawrie has surrounded himself with McKinsey Consultants..most of whom are so green without any real operational experience producing fabulous powerpoints. These consultants fly in and only report back to him - overall a sorry state of affairs

Anonymous said...

Yes, the partners bill firms $200 an hour for kids a couple years out of college who have been taught the 'McKinsey Way'. That's how consulting firms make their money.

Anonymous said...

IT consultant : Someone who can wax lyrical about sex..........but is a virgin!

Anonymous said...

Were all doomed!

Anonymous said...

But what about the poor UK employees facing redundancy?

Anonymous said...

American Trade Journal reported:

Computer Sciences Corporation shares have received a Mean Price Target of $72.79. According to the rating issued from 14 Wall Street Analysts, the High Price Target is seen at $80 while the Lower end of the Price Target is seen at $60. The Median Price Target is calculated at $73.

Incredible. What are some of these analysts putting into their coffee?

Anonymous said...

I don't think Laphen or any of them really care about losing a few million. I'm sure part of the settlement agreement is that they pay the fines, and no one ever speaks of it again. I think they all have enough CSC stock to live comfortably for the next few months while details of a sale are sorted. Once that is done, I bet they all sell the remaining shares and run laughing to the bank at the poor employees left holding the shambles of a once great company...

Anonymous said...

http://en.wikipedia.org/wiki/Greater_fool_theory

Anonymous said...

Well it looks like 8th June was the day to cash out !
Look at all those insider trades
https://uk.finance.yahoo.com/q/it?s=CSC

Anonymous said...

More importantly.... at least in my opinion, is the number of share options exercised at $0.00... meaning shares given to the Directors. By my count - it as 977,000+ shares given to them - totally around $66M in total worth - before the extra $10.50/share dividend coming in October.

I bet we know where are raises are....

Anonymous said...

Wow... must have been a bad night. My spelling was atrocious in my last post. Sorry... I program much better than I type after a night of beers!

Anonymous said...

http://finance.yahoo.com/q/it?s=csc

Obscene .... these are nothing short of latter day pirates ... except what they are doing is legal ... sad and disgusting - I am a firm believer in free market economy but this is an abomination - Lawrie et al are in no way, shape or form are trying to create shareholder value - they are, in Ayn Rand terms, "looters" ...

Anonymous said...

"Forward together" ....errrr, well actually you plebs go on ahead, we'll have to catch you up 'cos we've all got our snouts in the trough at the moment!

Anonymous said...

Announcement from CSC on 11 June

"CSC Elects Sachin Lawande to Board of Directors".

Mr Lawande is Indian. I wonder why he has been elected to the Board of Directors.

Anonymous said...

The publication which modestly calls itself "The Enterprise Leader" has reported that

"Computer Sciences Corporation (NYSE:CSC) has received a top Growth Style score from Zack’s Research. The growth score is based on company financials as well as the company’s prospects for future growth. The score is a result of analysis of various aspects of the Balance Sheet, Cash Flow Statement and Income Statement."

http://theenterpriseleader.com/stock-watch/computer-sciences-corporation-nysecsc-a-top-growth-pick/2126/

It would be funny except for the fact that thousands of people need CSC to be successful for their livelihoods.

Zacks give the game away by saying that this rating comes from analysis of financial statements. But clearly no analysis of business dynamics!!

Anonymous said...

If you do a 'whois' on 'theenterpriseleader.com' , you'll see that this is registered in Panama and was created March 30, 2015.....and it was registered for only one year .... also, there is no author to the article, just 'Enterprise Staff' ....the comments made in the article sophomoric at best ... "and specializes in applying contemporary practices towards the employment of IT." .... really? This sounds like it came from a college freshman's term paper .....

Anonymous said...

But what is happening about redundancies in the UK?

Anonymous said...

http://www.glassdoor.co.uk/Reviews/CSC-UK-Reviews-E37115.htm

Are you another poor worker in UK who has had enough and want redundancy? 800 more to go this year!

Anonymous said...

I wonder if any Zacks analyst has ever left his or her office.

Anonymous said...

Still working out who can be released whilst causing the least damage to our clients. Still, with the latest wizard wheeze from Mikey and chums... "2 in a box" ...at least you'll have TWO managers to tell you when you're fired!

Anonymous said...

Yes, to pick up the thank you checks from CSC's executive suite.

Anonymous said...

I left a few years back, after a brief sabbatical now work for a UK company that pays well, good benefit and in last year had a pay rise and a bonus!

Being made "redundant" was a relief and long term looking very good decision made by CSC for me. Thanks CSC.. you are the best!

I am not convinced staying at CSC my mental health would have survived the ongoing churn and uncertainty.