I have been reading through some annual reports of a company over this weekend. Seen below is the performance of the company (blue line) compared to S&P 500 (yellow line) and DOW (orange / red line). The company has massively under performed the index and even more compared to their stronger peers.
- The market cap of the company was 22% higher 5 years ago than now
- The company has retained ~4B of earnings to lose close to $10B of market cap over the time period (think about the WEB retained earnings test)
- The company has repurchased close to 50M shares at an average close to 50% above the current price today costing the shareholders another billion $
- The company has taken write down or pretty much thrown in the towel on some of the bigger acquisitions over the last decade
Amazingly…. the same management continues to run the show and the market is watching them do another re-org of the company. Just Wow!!!! Are shareholders asleep at the wheel?