Click on link for the article.
NCR CEO Bill Nuti: Where’s The Cash?
“Why did NCR borrow $3.6 billion in the first place?”
In five short years, NCR’s balance sheet has gone from debt-free and cash-rich to debt-laden and cash-poor. Here’s how it was accomplished: NCR borrowed about $600 million to take care of a really big pension problem (it’s still a really big pension problem).
NCR also borrowed $3 billion to fund acquisitions Radiant, Retalix and Digital Insight. Each of the acquisitions has been a disappointment, each is struggling to grow, and each is generating lower than expected profitability.
The Digital Insight purchase tells you a lot about management’s approach to capital allocation. Digital Insight was up for sale via an “open auction” in the summer of 2013 – open to all, including NCR – and was sold for $1.025 billion to Thomas Bravo, the deal closing on August 1.
Just 90 days later, here comes CEO Bill Nuti, suddenly ready to make a deal. He agreed to have NCR pay $1.65 billion (borrowing all of it), a 60% premium to the open auction price. (Understand, nothing fundamentally changed with respect to Digital Insight’s value during those 90 days.) It should come as no surprise, given the premium paid, that NCR’s acquisition is struggling to generate enough cash to cover the interest on the debt incurred to purchase it.
FYI NEWS for Stockholders of NCR Stock-
Investigation Article Link
An investigation on behalf of current long-term investors in shares of NCR Corporation (NYSE:NCR) shares was announced over potential breaches of fiduciary duties by certain officers and directors at NCR.
Investors who purchased shares of NCR Corporation (NYSE:NCR) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain NCR officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
On April 24, 2015, SeekingAlpha published an article which asserts that the Company has, “numerous signs of aggressive accounting” and “NCR’s pension folly has resulted in complicated accounting and failed objectives” among other potential business issues.
On June 24, 2014, after the close of trading, it was reported that NCR Corporation’s “opaque and aggressive” accounting issues were deterring potential bidders and that “[t]here is not enough financial information to make a binding bid.”
Those who purchased shares of NCR Corporation (NYSE:NCR) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego
Read more: http://www.octafinance.com/investor-investigation-over-potential-wrongdoing-at-ncr-corporation-nysencr/86798/#ixzz3hJkWmGnL
Came across this link and thought I’d share it. Not sure how long it’s been out there.
Employees of NCR: This article is VERY troubling, and not good news but I still think you should at least be aware of what is being written about NCR .
The Author’s analysis stated:
- Using behavioral analysis, we observe many striking similarities between what unfolded during Nuti’s tenure at Symbol and NCR’s current predicament, including: 1) hiring of numerous former Symbol associates, 2) issuing overly optimistic guidance, 2) aggressive accounting, 3) questionable Brazilian dealings, 4) restructuring announcement and 5) liquidation of shares ahead of a major stock decline.
An Array Of Accounting Gimmicks Appear To Be Overstating Its Financials
Recent Events At NCR Appear To Mirror Past Outcomes At Symbol Technologies
The phrase: “To Promote Industrial Democracy” was one goal of the National Labor Relations Act and allows a way for employee’s to empower themselves.
Usually they are employees who value their rights and realize they can choose not to give up their rights each time they report to their workplace. Simplified-the idea of not having to leave your democracy at home or out in the employee parking lot. You bring that democracy right into work with you!
So, anyone with a love of democracy and rights….You may want to consider finding out more.
You might not have even realized that it was happening! I don’t know how or why it began, but somehow, it has become the norm. People rarely stop to question it until pointed out. But you have to ask yourself how we became willing (in a country willing to wage war in defense of the same rights and freedoms) and agreed to relinquish our rights and protections just because we report to our workplace?
See the comparison below of the rights you have:
Your Rights Outside the workplace VS. Your Rights as an At-Will Employee (not under employment contract)
Constitutionally Guaranteed Rights: Outside the Workplace:
- Right to Privacy (free from unreasonable searches and seizures unless their exists probable cause)
- Right to Vote (A voice when creating policy that effects you)
- Right to receive Due Process (be informed of the nature and cause of the accusation; to be confronted with the witnesses against him,not be deprived of life, liberty, or property,) 6th Amendment
- Right to Free Speech (the freedom of speech, the right to peacefully assemble, and to petition for a redress of grievances.)
- Presumed Innocent Until Proven Guilty
Welcome to the At-Will Workplace. Come on in…..Here’s what you get:
- At-Will Employment (free to quit and free to be fired at anytime, be it first day or after 30 years, no cause is necessary or required to be provided )
- No right to vote (Employee’s voice/ input need not be considered when making decisions that will significantly effect them)
- No right to receive any Due Process (Policy and rules don’t have to be fairly or equally enforced, management is free to enforce rules unjustly, play favorites when giving raises or lay offs. Work hard, but you will likely make less if they don’t like you even if performing well.)
- No right to be presumed innocent (you could be innocent-but you do not have any right to present your defense to charges. Similar to presumed guilty unless your boss is willing to believe you. Could be highly unlikely depending on his mood.)
He claims to have walked in the shoes of a CE and understands how you feel. Highly unlikely, This guy is from Nutti’s good ole boy’s club. He’s was brought over from Symbol Technologies.
Don’t just believe me, read it for yourself.
Click the link below to see what’s in his employment contract before you consider believing his story.
Remember, that he has a contract while convincing you, that you don’t really need one.
But who is he? NCR’s Executive Vice President. His 1st day with NCR was Nov 29,2008.
About the same time that the CE III’s were elimination and re-banding was announced.
What did he make to start ? You’ll be shocked!!
(Don’t forget Symbol was not in good shape when Nutti left, and was being investigated for over inflating the price of stock.)
In 2009 he made- $2,907,035
His Annual Base Salary –$750,000 US Dollars per year
Sign-On Bonus –$1,300,000 cash sign-on bonus
Hiring Equity Award –
New hire equity grant with a total value of $4,000,000 US Dollars.
Management Incentive Plan for Executive Officers –Eligible for a target incentive award of 100% of your base salary, with a maximum potential payout of 250% of your base salary.
Mr. Bruno was Symbol Technologies- Senior Vice President, Corporate Development, from May 2004 to June 2005, and was Symbol Technologies- Senior Vice President, Business Development, and Chief Information Officer, from November 2002 to May 2004. http://people.forbes.com/profile/john-bruno/125711