Xerox is NOT going Bankrupt
You would think the market thinks otherwise in light of the pounding this stock has taken. This one bugs me. It was one of the 3 stocks I picked for 2012. The other 2 were Sandstorm and SDRL, both kicking butt from when I picked them. Xerox hasn't.
I don't understand the "hate." They lowered year end PE projection, but if they meet guidance, say $1.10, this stock is selling for less than a 7 PE. In addition they pay a decent dividend from a percentage point of view. The company spits out great FCF which they are using to lower outstanding shares dramatically (this is when I like stock repurchases, when the stock is at lows). While the technology will hurt some from Europe, the IT part of the company is making major strides. I won't give up on this stock. I don't think this a "value trap" but rather the market not realizing the company is not just in the printer business. I bought today and will keep buying at these levels. I urge others to do the same.