Symantec Corp (NASDAQ:SYMC)

CAPS Rating: 3 out of 5

The Company deals in infrastructure software, enabling businesses and consumers to have confidence in a connected world.


Player Avatar GuruInvestor (< 20) Submitted: 12/2/2007 1:21:30 AM : Underperform Start Price: $16.84 SYMC Score: -7.20

This company did several business missteps such as disastrous merging with Veritas, recent unnecessary overpaying Vontu aquisition in the last five years. The merge with Veritas diluted symantec's stock value. The Vontu aquisition does not add value to symantec's business in a sensible way.

Inside this company, the lack of innovation, continuous lose of top talents, lack of proper management knowledge in the mid and high managers level, turf wars bewteen different groups make it a typical over-matured company. At the same time, the quality of their products can not meet analysts' expectation.

The current net profit margin is 6.03%, which is one percent higher than inflation rate. It is even lower than the lowest businees loan rate 8%. That means its business operation is in the lowest end of efficiency.

This stock price range is highly likely maintaining $15-$21.

Report this Post 3 Replies
Member Avatar esa3000 (< 20) Submitted: 1/7/2008 5:39:31 AM
Recs: 0

I agree with you.
The ex cash flow machine is now just an overmature company, waiting for a buyer, to solve internal wars and confusion.

Member Avatar symswobo (< 20) Submitted: 4/30/2012 8:06:04 AM
Recs: 0

GuruInvestor, wow, you are good and obviously have some insight into this poorly run organization. They had no idea what to do after buying veritas. they had to go out and buy all new calculators because the ones they were using could only add up to $500m annually, not $1.2b per quarter. this company has over 200 products with a go to market strategy designed during the days when peter norton was still there. And you couldn't have been more truthful and on point in your second paragraph... that is exactly whats going on over there. they continue to lose tallent because their middle management and executives all but push these engineers out the door because they have no clue about innovation. I worked there some years ago and I have never seen such poor operating decisions. I mean they have more middle management staff overseeing 1 or 2 employees than you could possibly imagine! and are paid exorbant amounts of money to manage one, maybe two individual contributors. They have about 900 cheifs over there and about 9 indians doing the work and thats why they are at the lowest end of efficiency. But you couldnt have said it better. A typical top heavy, bloated organization thats no longer nimble enough to move in this economic climate.

Member Avatar itshoon (< 20) Submitted: 8/7/2012 11:36:09 PM
Recs: 0

The last retrenchment exercise create a service vacuum. No new product breakthroughs; no strategy for future growth; no money for partners to be enabled and expand; literally they just push boxes since they also let go the service and consultancy...

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