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Company in Cost Cutting Mode

Jan Itor

Jan Itor

HB Legend
Jan 31, 2009
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Had a meeting today about the company gearing up for a round of cost cutting. Something they obviously did back in 08-09. At this point, not at the same scale as back then, but of course, that all depends on if the market continues to tank.

So, HROT market geeks, are the indicators pointing up or down in the near future?
 
Democrats = Economy is doing great. Very strong. Continuing to build strength

Republicans = Economy is crap. Headed towards a second recession. Bubbles about to burst any day causing collapse

Those arguments could flip flop depending on the results in November, but I'm pretty confident that's how this will play out.

Also, HawktimusPrime is a "so-called" expert on the market. He has many fine links he'll be able to share with you regarding the state of the economy.

Good luck.
 
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All I know is that I'd be pissed if I were someone that freaked out when it got down to 15,500 or so and unloaded a bunch, just to see it get back up above 16,000.
 
Jan Itor said:
Had a meeting today about the company gearing up for a round of cost cutting. Something they obviously did back in 08-09. At this point, not at the same scale as back then, but of course, that all depends on if the market continues to tank.

So, HROT market geeks, are the indicators pointing up or down in the near future?
Click to expand...


Are you asking about the economy, or the stock market?
 
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Cheap oil, and low fuel costs may seem cool, but it's killing a big part of our economy right now. We are getting hammered right now, and even when there is demand, leasing and credit is becoming a major issue.
 
fredjr82 said:
Democrats = Economy is doing great. Very strong. Continuing to build strength

Republicans = Economy is crap. Headed towards a second recession. Bubbles about to burst any day causing collapse

Those arguments could flip flop depending on the results in November, but I'm pretty confident that's how this will play out.

Also, HawktimusPrime is a "so-called" expert on the market. He has many fine links he'll be able to share with you regarding the state of the economy.

Good luck.
Click to expand...


Why turn this into a political thread? Simply asking about the indicators (non-political) on the Market continued decline or potential resurrection.

Thanks
 
Jan Itor said:
Had a meeting today about the company gearing up for a round of cost cutting. Something they obviously did back in 08-09. At this point, not at the same scale as back then, but of course, that all depends on if the market continues to tank.

So, HROT market geeks, are the indicators pointing up or down in the near future?
Click to expand...

What type of company do you work at? How many employees? And how many janitors do they keep on staff? ;)
 
Jan Itor said:
Not bad. :)

Financial company with out 14,000 employees. And I'm a Systems Analyst. I moonlight as a janitor. ;)
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Seems like the larger the company, the easier it is for them to cut jobs. I'm at a local bank now, but when I worked for the big boys they cut and slash when things got slow, then be screwed and understaffed when it got busy - especially in mortgage lending. So when you refinance in the middle of a rate decline, that's why it seems like it takes forever and no one knows that's going on.

I can only assume your industry is similar. They'll slash jobs now, then rehire when the market booms again.
 
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Jan Itor said:
Why turn this into a political thread? Simply asking about the indicators (non-political) on the Market continued decline or potential resurrection.
Click to expand...

yeah_sure_jon_hamm.gif
 
Citi bank analysts claim the world economy is in a death spiral. That can't be good. :eek:

The global economy seems trapped in a "death spiral" that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi strategists have warned.

Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.

"The world appears to be trapped in a circular reference death spiral," Citi strategists led by Jonathan Stubbs said in a report on Thursday.

http://www.cnbc.com/2016/02/05/citi-world-economy-trapped-in-death-spiral.html

death-spiral.gif
 
IACub said:
Seems like the larger the company, the easier it is for them to cut jobs. I'm at a local bank now, but when I worked for the big boys they cut and slash when things got slow, then be screwed and understaffed when it got busy - especially in mortgage lending. So when you refinance in the middle of a rate decline, that's why it seems like it takes forever and no one knows that's going on.

I can only assume your industry is similar. They'll slash jobs now, then rehire when the market booms again.
Click to expand...

Yep. They did the same in 08, and then started
fredjr82 said:
yeah_sure_jon_hamm.gif
Click to expand...

I know you can't help it. I should have been more understanding. You are who you are.
 
Economy is in the shitter.

Alot of companies have already warned they aren't going to meet their earnings projections this year.
 
Manufacturing is in Horrible shape, started in July of last year. We have had four months in a row of contraction of the purchasing managers index. Seems to be firming up a little at present, however beyond 30 days orders are shaky. Ag, Auto, Agricultural, Aerospace, and Aerospace are all down. The only thing booming is gun sales. This type of a down year is typical of a Presidential Election Year, however it is aggravated this cycle by cheap oil, low defense spending and low agricultural prices (Farm income is down 50% vs. two years ago). Additionally, Tier 4 engines, those wonderful things forced on us by the Federal Government, are going to push out the start of the next boom cycle of Ag Equipment. It is due to start late 2018 and be in full swing by 2020 (It is an 8 to 11 year cycle). However, due to the hate of the latest generation of engines I would suspect that it will push off the Ag Equipment recovery by several years. One only has to look at he Ground Transportation Industry to see how the trend will play out. Owner/Operators will push out purchase of Tier 4 Engine equipment and rebuild Tier 3 engines and stick them in new chassis.
 
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Keep in mind there's a whole economy built around tax refunds and that economy will kick in soon, it's wrong in so many ways but it is what it is
 
Jan Itor said:
Had a meeting today about the company gearing up for a round of cost cutting. Something they obviously did back in 08-09. At this point, not at the same scale as back then, but of course, that all depends on if the market continues to tank.

So, HROT market geeks, are the indicators pointing up or down in the near future?
Click to expand...

Lot of factors and I'll try to answer for you specifically Jan Itor. Think I know what company you are talking about. I follow them closely and at times have owned their stock (but not currently). Was their earnings call early this week and it was slightly below last years earnings and under what the analyst were expecting? Since then this company's stock has really taken a pounding.

If your company is who I think here are the issues. Over the last several years they have grown a lot of their business overseas. That growth was great for the stock then but did however leave themselves with greater exposure to what happens to the global economy (which is tanking worse right now than our own US). This company obtains a lot of their revenue from fees based on the valuation of their clients portfolios. If the markets take a dive their fees go down while their expenses do not. That is a big problem made worse with all the foreign risk they now carry.

Analyst fully recognize this which is why they (and their new leader) are taking such a big public show at trying to manage their expenses. They are trying to keep the stock from sliding further and expenses are the one thing they can control right now.

The last time I bought this company's stock was during the global growth cycle and since I'm not greedy sold it at a very nice profit when the global economy first started showing signs of trouble. I'm actually following this stock closely as an opportunity to buy should their slide continue.

As a systems analyst do you work more on the project or production side of the business? If your answer is on production your job could be more stable. If on the project side those are usually where big companies will shed jobs first in order to boost short term earnings.

Good luck. Could be a nice time to have the janitor gig in the back pocket. Like others I used to be part of the big company game and was surprised there weren't more people who had a plan B like you.
 
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ghost80 said:
Lot of factors and I'll try to answer for you specifically Jan Itor. Think I know what company you are talking about. I follow them closely and at times have owned their stock (but not currently). Was their earnings call early this week and it was slightly below last years earnings and under what the analyst were expecting? Since then this company's stock has really taken a pounding.

If your company is who I think here are the issues. Over the last several years they have grown a lot of their business overseas. That growth was great for the stock then but did however leave themselves with greater exposure to what happens to the global economy (which is tanking worse right now than our own US). This company obtains a lot of their revenue from fees based on the valuation of their clients portfolios. If the markets take a dive their fees go down while their expenses do not. That is a big problem made worse with all the foreign risk they now carry.

Analyst fully recognize this which is why they (and their new leader) are taking such a big public show at trying to manage their expenses. They are trying to keep the stock from sliding further and expenses are the one thing they can control right now.

The last time I bought this company's stock was during the global growth cycle and since I'm not greedy sold it at a very nice profit when the global economy first started showing signs of trouble. I'm actually following this stock closely as an opportunity to buy should their slide continue.

As a systems analyst do you work more on the project or production side of the business? If your answer is on production your job could be more stable. If on the project side those are usually where big companies will shed jobs first in order to boost short term earnings.

Good luck. Could be a nice time to have the janitor gig in the back pocket. Like others I used to be part of the big company game and was surprised there weren't more people who had a plan B like you.
Click to expand...
ghost80 said:
Lot of factors and I'll try to answer for you specifically Jan Itor. Think I know what company you are talking about. I follow them closely and at times have owned their stock (but not currently). Was their earnings call early this week and it was slightly below last years earnings and under what the analyst were expecting? Since then this company's stock has really taken a pounding.

If your company is who I think here are the issues. Over the last several years they have grown a lot of their business overseas. That growth was great for the stock then but did however leave themselves with greater exposure to what happens to the global economy (which is tanking worse right now than our own US). This company obtains a lot of their revenue from fees based on the valuation of their clients portfolios. If the markets take a dive their fees go down while their expenses do not. That is a big problem made worse with all the foreign risk they now carry.

Analyst fully recognize this which is why they (and their new leader) are taking such a big public show at trying to manage their expenses. They are trying to keep the stock from sliding further and expenses are the one thing they can control right now.

The last time I bought this company's stock was during the global growth cycle and since I'm not greedy sold it at a very nice profit when the global economy first started showing signs of trouble. I'm actually following this stock closely as an opportunity to buy should their slide continue.

As a systems analyst do you work more on the project or production side of the business? If your answer is on production your job could be more stable. If on the project side those are usually where big companies will shed jobs first in order to boost short term earnings.

Good luck. Could be a nice time to have the janitor gig in the back pocket. Like others I used to be part of the big company game and was surprised there weren't more people who had a plan B like you.
Click to expand...


I'm on the infrastructure side, where we install and maintain many of the products the Business Areas use. And when things go wrong, we work with Big Blue to determine the problem, and apply the fixes/maintenance. There's more to our responsibilities than what I've mentioned, like common mod ownership, Web Apps we created and maintain to help users monitor their processes.... And More....
 
The economy is slowing. We are likely heading into a recession. Many companies are struggling with revenue and profits declining. Corporate debt has become a real issue to a significant number of Blue Chips...and, of course, the oil patch. The stock market will react to these facts in some manner, way or form. I think there is more than a little bit of downside risk in the equities.
 
soybean said:
The economy is slowing. We are likely heading into a recession. Many companies are struggling with revenue and profits declining. Corporate debt has become a real issue to a significant number of Blue Chips...and, of course, the oil patch. The stock market will react to these facts in some manner, way or form. I think there is more than a little bit of downside risk in the equities.
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????? When isn't there more downside risk in equities? That is the nature of the beast but it also offers the best rewards if you do your homework and I can't stress enough....do not get greedy and hold out and try to time your investments peak. I'm lucky. I don't have to try to earn the maximum return for a client to beat some other money manager. I only have to have a return which satisfies myself. That actually allows me to beat the performance of many professionals trying to time for the max return.
 
91hawki said:
Economy is in the shitter.

Alot of companies have already warned they aren't going to meet their earnings projections this year.
Click to expand...
One leading economic indicator shows signs of a looming recession. It's called the oblama index. In his recent 2 question press conference Obama once again blamed the current economy on the 07-08 recession. You will find as the economy struggles the oblama index increases in correlation.
 
ghost80 said:
?????
That is the nature of the beast but it also offers the best rewards if you do your homework and I can't stress enough....do not get greedy and hold out and try to time your investments peak. I'm lucky. I don't have to try to earn the maximum return for a client to beat some other money manager. I only have to have a return which satisfies myself. That actually allows me to beat the performance of many professionals trying to time for the max return.
Click to expand...

Yes, but if you look carefully I added the qualifier "more than a little bit of downside risk"..and that is how I see it. Pollyana's are more than welcome to see blue skyies ahead with their own money, of course.
 
Corporate bankers are seemingly upset that the American worker isn't wanting to work for $4/hour any more. That squeezes their profit margins, so the need to reduce "overhead" (aka: jobs) is the first knee jerk alternative. Banksters need money...they need lots of money (for them).....you don't need so much money. And of course, the corporation is only going to cut jobs because this is what "the stockholders" are demanding. Never a management idea.
 
America's #1 Economic Indicator: THE TRUCKING INDUSTRY

Ask guys in the long haul trucking industry. They always know when recessions are about to begin or end.
 
soybean said:
Yes, but if you look carefully I added the qualifier "more than a little bit of downside risk"..and that is how I see it. Pollyana's are more than welcome to see blue skyies ahead with their own money, of course.
Click to expand...
While I agree there will be a recession in the next year or two, bean has been calling for it about as often as Schiff.
 
Neighbor is a regional sales manager for UPS, you want to know how the economy is going, he always knows 1st.
 
BigDelHawk said:
Manufacturing is in Horrible shape, started in July of last year. We have had four months in a row of contraction of the purchasing managers index. Seems to be firming up a little at present, however beyond 30 days orders are shaky. Ag, Auto, Agricultural, Aerospace, and Aerospace are all down. The only thing booming is gun sales. This type of a down year is typical of a Presidential Election Year, however it is aggravated this cycle by cheap oil, low defense spending and low agricultural prices (Farm income is down 50% vs. two years ago). Additionally, Tier 4 engines, those wonderful things forced on us by the Federal Government, are going to push out the start of the next boom cycle of Ag Equipment. It is due to start late 2018 and be in full swing by 2020 (It is an 8 to 11 year cycle). However, due to the hate of the latest generation of engines I would suspect that it will push off the Ag Equipment recovery by several years. One only has to look at he Ground Transportation Industry to see how the trend will play out. Owner/Operators will push out purchase of Tier 4 Engine equipment and rebuild Tier 3 engines and stick them in new chassis.
Click to expand...

Manufacturing always get the headlines but do you know what percent the current economy it represents ?
 
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