Apr 12, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Poll Monica from CNN business joins us now to talk about one of the hottest stocks in 2019. Xerox. I don't know it's pretty amazing that this is they act hoping that war. The last century old than it is up about 70% so far this. So. I'm guessing again I've not looked closely at Xerox's BO financials. I would imagine this isn't from some robust growth in the sale of copiers though my right on that. You are correct this is really all about some hope and excitement. Because. The company you know which Carl Icahn has that been a big investor is going you. Try and become hey holding company like Google now which is alphabet. Their shareholders can vote on that the annual meeting. Next one then the hope is that. That this will allows Iraq to lie in it to be some other businesses that'll be more rapidly growing particularly its software. Keep them at arm's length from the core operations to be a little lower tax bill they hadn't been helped without checking patents so. A lot of it is cosmetic but investors are very excited. I guess here here's the question that I have Suze is there anything going on here at the moment. That are we actually see any uptick in profitability or any uptick in. Yes sales right now or is this just all kind of be buying that future story based on that reorganization. He really is mostly about buying the future story I mean they have not. You know done a good job as of yet getting Japan for its core products to earth could. Sales growth you know in DC you know is basically saying that. The goal is that they wanna have failed growing again I went what you thought which are still two years away. Your earnings fell over the past five years on average there are only expected that the increase. You know about the only single digits over the next few years so. I think that's why analysts are still very skeptical that there's not that many that Hubbard the company any more businesses not exactly be. Most widely yeah. You followed stock. Microsoft. Google and Amazon. But that the few analysts who follow it does their price targets only a little bit tired with the stock currently isn't it five and older. It will be now. Or how much of of Xerox's business today is actually still copiers and things along those lines. Don't they have it transformed. The business a little bit it's focused more software and services you know document. Yeah printing in debt. Management is still a lot you know eat. Primary source your revenue. In terms of their overall size one of the things that I always look at with the company kind of of this size that in there about an eight billion dollar company which in tech these days it's it's not exactly new Q Jimmy technically it's a large cap but not compared to some of these big names out there. There anyone who might look at them as an acquisition starters they get too expensive with this recent run up. Yeah sure that they are going to be a compelling acquisition target because of you know that reason the stock is cops so much. And I think there's also audio issue of what would you really be buying in Iraq this crying you. Reinvent itself that doesn't strike me. You know the type of he acquisition target war. Another company after buying someone that's still trying to figure out what they really want to eat. So I'd be very surprised if you're Iraq would be. But take over target even though you know Karl like obviously has track record of going it and that. Don't buying out companies are you know by investing in companies that he'll eventually get taken note. Are good Paul we've got to run but thanks for joining us today and we will see you next week. It. All Monica from CNN business talking at Xerox the ticker and and his ex are ex in the stock by the way is up 75%. This year already. Was Xerox or was it another hole and create company is doing something with crypto currency last year. Overstock ones. I don't know whose whole no wasn't Torre's porous complete Polaroid might have been doing something with them. I think the Xerox had some sort of patent after Christina remember seeing it just it sheep barking grabbed it that's stock price that. It's we haven't talked records occurrence in a while your part of that kind of a good thing. Yeah it is quite glad we have been on the crypto days of late when he seventeen were not fun for anyone Ronald well. Well very few people meant to deter someone made money and spawned a lot of people not so much. Dow was up 207 points S&P up thirteen the NASDAQ up twenty right now. We're done for the day enjoy the weekend stay safe and we'll see you back here on Monday. On the financial exchange for.