Taking A Trip

I am headed to San Francisco for the Symantec Analyst Day tomorrow. I will try to post. Good luck.

4 comments:

Randolph Bertin said...

Impressions on Symantec?

Tsachy Mishal said...

I will give a detailed review later in the day. In short, management seems very optimistic although nobody believes them. This might be a relief because many were expecting a guide down. If they are anywhere close to being correct the stock will be a lot higher. It doesn't seem like management will do something exceedingly stupid like a large acquisition. But they are unwilling to make commitment to returning cash to shareholders.

Randolph Bertin said...

Management is generally optimistic. Perhaps the reality is somewhere between management's optimism and the pessimism of the naysayers. SYMC said they are interested in acquisitions. Do numerous small acquisitions that don't pay off end up being any better than a large one? Do you think their returning value to shareholders through buybacks is returning enough value? How much upside do you think there is?

Tsachy Mishal said...

I think a proper, conservative valuation is in the mid-twenties or roughly 10 times free cash flow. Even at the current pace SYMC is repurchasing roughly 9% of the shares over the course of a year. I would like them to do more, which is why I went to the analyst day. I am still planning on posting a more detailed account of my trip to analyst day.