Initial purchase: 3/25/2015
Cost basis: $12.90
Current Portfolio Status: Hold
Dividend Reinvestment: N
Dividends paid quarterly in Jan, Apr, Jul, Oct
Shares held on account with Motif
Xerox Corporation provides business process and document management solutions worldwide. The company’s Services segment offers various business process outsourcing services, such as customer care, transaction processing, human resources, communication and marketing, and consulting and analytics services, as well as finance, accounting, and procurement services. This segment also provides business process outsourcing services in the healthcare, transportation, financial services, retail, and telecommunications areas; and document outsourcing services, including managed and centralized print services. Its Document Technology segment offers desktop monochrome and color printers, multifunction printers, copiers, digital printing presses, and light production devices; and production printing and publishing systems for the graphic communications marketplace and large enterprises. The company’s Other segment sells paper, wide-format systems, global imaging systems network integration solutions, and electronic presentation systems. Xerox Corporation sells its products and services directly to its customers; and through its sales force, as well as through a network of independent agents, dealers, value-added resellers, systems integrators, and the Web. The company was founded in 1906 and is headquartered in Norwalk, Connecticut.
Reason for holding: January 29, 2016, company announced plan to split into two companies 11B document technology and 7B services with Carl Icahn essentially controlling the board of the services company. This is essentially an acknowledgement that the 2009 acquisition of ACS has failed.
Strategy: I am now in acquisition (moderate) mode. I suspect – based on current stock prices – that we will see a reverse split in conjunction with the spin, perhaps as high as 10:1. My intention is to avoid being squeezed out.
February 7, 2016