| Topic Name: |
Big Blue, Where Are You? |
| Message Name: |
already done and almost a secret ... |
| Date Posted: |
02/10/2006 |
| In Reply To: |
An ethical company is going to have a serious problem on thier hands if they buy Hewitt.
The transfer pricing used in shipping work overseas to India might not stand up to IRS scrutiny. The hidden profits support the existing manufactured financial crisis... which supports layoffs in search of even more profits.
If actual profits from the benefits outsourcing side of the business were ever known to clients, they would evaporate under pricing pressure as clients demanded deeper discounts.
Hewitt is purposely letting the stock sit where it is, and wasting money on HRO to soak up excess profits. If you look at the last quarter's financial statements, you can see that stock options and grants took a huge bite out of what could have exceeded expectations.
But then, a soaring stock price scares off suitors. This is my whole point. Without a suitor, all of the now restricted ex-owners shares need to actually be sold on market, which would also depress the price. A buyout solves all these problems. Even at 19 dollars a share, the ex-owners make out very well since their cost basis is only 39 cents a share.
I dot usually subscribe to conspiracy theories,, but this is the best explanation for what's going on at the company I have. |
| Message: |
check out wikipedia entry for Hewitt Associates. Hewitt is actually a subsidiary of Haliburton.
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