This is an IT services company. Valuation is almost a 10% free cash flow yield. In May they announced they were acquiring HP Enterprises. Thinks people are underestimating the accretion and the synergies delivered from this merger. It is a very fragmented industry. They will be a multibillion-dollar company poised to continue making accretive acquisitions. Dividend yield of 1.18%.
(A Top Pick Aug 2, 2016, Up 46%) It changed its name. The merger acquisition transaction was quite complicated. It was one of the most value creating transactions he has seen. It is now DXC-T.
They bought at $17.67. Since then they had Scientific Atlantic acquisition which he really liked (a strategic acquisition). More demand for communications equipment.
Cisco is also moving into Voice Over IP (voip).
By passing Ma. Bell.
This is an IT services company. Valuation is almost a 10% free cash flow yield. In May they announced they were acquiring HP Enterprises. Thinks people are underestimating the accretion and the synergies delivered from this merger. It is a very fragmented industry. They will be a multibillion-dollar company poised to continue making accretive acquisitions. Dividend yield of 1.18%.