Resideo Stock Plunges 37%, CFO Ousted
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today.
Not even a year ago, Resideo IPOed, then had its stock price plunge. Today, it got significantly worse.
We examine what is happening and the emergency turn around specialist they have brought in.
Stock ****
*** ***** *** ******* ~**% ** the **** **** ***** ******, ********* the **% *****, ** ***** *****:
*** ***** *** **** **** **** 40% ******* ********* (***** $*.**) *** recovered ******** ** $*.**, ***** **** more **** $* *** *** ***.
CFO ***
** ** * **** *** **** for * *** ** ******** **** and *** ******* *** ********* **************. This ** **** *** **** ******** at *******, **** **** ******* *** releases:******* ********* *** ******************** ********* ******** *********** ***** ******* Revenue *** ******** ****** *******, ******* Guidance *** **** **** ****.
Turn-Around ********** *** ******* **
*** *** ******* ***,****** *****, ** ***** **** * $* million ****** **** ($***,*** ***** * weeks) ** ******* *** ** ** to * **** **** ********. ***** describes ******* ** ******** ** "********* at ****-*******, *&* *** ***. ********."*******'* ** ** ********* **** ** "******** **** ********* on ********* **********, ****, *** ******* structures ** **** ** ************** *******".
******* ******* ************ ********* **** ***** such *************: "******* *** ***** * comprehensive *********** *** ********* ******, ******* on ********* ***** ******* *** ********** its ************** *********."
** ****** *** ***** *** *** exiting ***'* *********, ******* ** "** pursue ***** *************." *** ** ******* that ** *** *** *** **** signed * ********** ********* (*.*. "** Mr. ***** ***** *** **** *** rescind * ********** *********").
Reduced ******* *** *******
***** **** *** *** ****, *** company ********* *********** ***** ******** *** profits *** ******** ***** *******:
** * ******, *** ******* ** updating *** ****-**** **** ******** ****** guidance ** ** ** *** ***** of $*** ******* ** $*** *******, compared ** ********** ******** $*** ******* to $*** *******. *** ******* **** is ******** *** ****-**** **** ******** for ******* ****** ** *% ** 4%, ** ******** ** ********** ******** 2% ** *%.
*** ****** ******** **** ** **** in *** **** ** ********** ** this ******* * *** **** ** profits ** *** ****** **** ** 2019.
*** **** ******* ****** ***** ** Resideo *** ***********:
*** ******* ******** ******** **** ********* due ** ***** ***** ******* ** non-connected ***********. ** ******* * **** pre-spin ******* **** *** ***** ********** of ***-********* *********** ** *** *-****** line ******** *** ******** ** ***-***** T-Series ***********. *** ******* ******* ****** markedly **** ********** ** *** ***** quarter ***** *** ***** ********** ** non-connected *********** **** ************.
** ** *** **** ****** ***** the ********** ******** ** *******.
ADI *****, ******** ********* ******
********* ** *******, *** ** *** having ********:
** *** ***** *******, *** *** Global ************ ******** ********* ** **** as *******
*** *** ******** ******** ********* ** not ** ********, ****** **** ******* one ***** ********'* ***** ****** ** impact:
***** *** ******** ******** ********* ** grow, * ****** ***** *** ******** delayed *** ***** **** ** *** purchases ****** *** ****** *******, ********* in ** ******** ******** ****** ** fourth-quarter ******* ** ************* $** *******.
*** ********'* **** ** *** ********* and ** *** *** **** ** those *** *** ********* **** ******** or *** ************, ***.
Problems *** *******
***** ** ** *** ****** ***** Resideo's ********* ** ** **** **** is *********, *** ***** **** *** stock ******* **% ***** *** *** dropped ****** **% ***** **** **** issued **** **** ** * *******.
*** ******* *** *** * ****** cap ** **** **** ~$* *******, which *** * ******* **** **** still ** ~$* ******* *** $***+ million ***** ** ***** ***. ** the ***** ****, ********* ********* **** concluded **** ***** *** *********** ******** with *******'* ******** ** *** ** this *****. *** **** ***** ****** are *** **** ****, ** *** increase *********** ************ ** ********** ******** to **** **** *** *******.
Vote / ****
****** *****, ** ***** **** * $* million ****** **** ($***,*** ***** * weeks)
* ****** *** ***** **** ** work
***?
"**'** ****** ******* ********* ********! **** should ** **!?"
"* *** **! ***'* *** **** dweeb ***** *** ** ****** *** why **'** ****** *****."
***, ******, **** *** * $* billion *******. ** *** *** ****, this ***** *** ** **** ** justify ****** **** **** ** *** execs. ** *** ***** ****, *** number ** ****** *** **** ***** public ******* *** ********** *** *** willing ** *********** **** *** ******* to *** ****** *** **** ****** a *** ** *****.
******** ******:
******* *******, ***** ****** ********** ****** tomorrow:
********* ******* ******* **** ********? ***'* forget ** ***#****************** ******* **** ******** ******** *** photos **** *** ****.***.*******.***/**********
— ******* *** (@**********)******* **, ****
*** ******** **** ** **** ******* will ** ****** *** ****** ***** people, ***** **** ******** *** ********** or ******* **** *** ************. *******, minimally, ** **** ** ********** / challenging *** *** ********** ** ******* a ***** **** **** *** ***** turmoil.
****, ******, *** **** ********** **** down **%, ***** ** ***** ** was ** ***-*** *** *** ***** recovered ******** ** *** *** *** at '****' **** **%.
******:**** ** *** ********* ****** *** interim ***. *** ***** **** ******* ** as *** ** **** *** ******** cash ************, ** ****** *********.
***** ****** "$**,*** *** **** ********* ** ****** of **** ****" ** ******* ** sneer **, ** ***** **** *** interim *** ***** **** **** **** money ** ****** *** ******* **** to ***** ********, ***** ***, ** is ***** ********* ********* ****. ****** with *** ****** ** ****, ****** share.
*’* *** **** *’** **** **** a ******** ******** ** ** ********** letter:
********** **** ***** **. ***** ** perform ***** ****** *** **************** ** a ********, *********, *** ******** ******, and ** *** **** ** *** abilities, *** **** ******* ***** *** to ****** ************* *** *** ****-**** efforts ** *** ******** *** ******* of *******.
***, **********, ********** ** * *********** of **** ****. **, ** ***** Horsepower **** ****** *** ***** **** show ** ********, ***** ** ****...* guess...
****, *** ******* ** **********?
*** ******* ** **********?
***, ********** ** ****** **** ***** and * *** ******* ******. ** LinkedIn ******* *******, ** ******* * can ***** *** ** ********* *** role ** ********** ** ********* '**' experience:
** **** *******, * ***'* *** a ******* **** ********** = *****, so **** ** ***** *** *** special ****** ** ******* **** ******** situation, **** ** **** *** *******.
****,**** ** *** *** / ****** Consulting ***** *******, **** **** ********** *** ********** expertise: "*** ****—**********, *************, *** **************" and "** ** ** ****** **** *** TURN, ***** ***** ******* ******* *****, visible *********** ************ ** *** ***** term ***** ************* ***** ************* *** positioning **** ** *** ** *** future."
...* ***'* *** * ******* **** Horespower = *****...
** *******. *** ********* **** ***** like * ******* *** ** ****** puffery ******* *** ****** *** *** consultant **** **** ** **** ***********.
***, ******* *** *** ******** ***** Horsepower = ***** ****** *** ***********
**.********* *******.******* ******* ***** ****** *** **************** in * ********, *********, *** ******** manner, *** ** *** **** ****. *****’**********, *****. ********* ******* *******.******* ****** ************* *****.*****’*****-**** ******* ** *** ******** *** affairs ** *******.
* ****** **’* ** *********** *********** between **. ***** *** *** *** to ****** *** **** *********.
* ****** **’* ** *********** *********** between **. ***** *** *** *** to ****** *** **** *********.
* ***** ****’* *** ********** ******* regular ******* ****** **** **, *** would ***** **** ** *** ******* limits *********; *** ***** ******** *** types *** ******* ** * ***** different *****.
** *** **** ** ** ******/ stock ****** ************ * ****** *** guy ** ***** ****** ******* ** know ***** *** *** ***** ***** is ******?
** ** * ***** **** ******** in ***** **** ** ***** *** be ********?
****** **** *** ****** ** ****, please *****.
** **** *** **** *** *** of *** ******** ** **. *** one *****, ***** ****** *** ** messy **** * *** ***********. ** is *** ** ********, ** ****'* have ** ****** ***** *** ******, or **** *** ***-********* *******, **** of ***** ***** ***** * *** burden ** ***, ***** **** ***** likely **** ** ****** *** *** with **** **** ************.
*** ******** ** **** ******* ****** him ** ** ******* ***. *** sure ** **** ** * *********, and **** **** ** **** * full-time *** ***** *** ***, ** if *** ****** ** *** *** to ****** ****-**** *** ********** (***** would **** **** **** *** *********** to ***** *** *** ******* ***/** RSUs **** * ***** *** ******).
****, ****** ** ***** ******** ** or ********* ** *** ******* (**** likely), *** ***** **** **** ** a *****-**** **********, * ***** ** that ******** * *** ***** ****** hard **** **** ***** ** * company * *** *** ***** ********.
************, *** **** ** ***** ***** of *** **** **** ***** ****** extend ***** ******* ***** ********. *** agreement ***** ******** ** **** ******* a ****** ***** *******, *** * would ***** ** ***** ***** **** a *** ** **** ** ** through *** *****/********* *********** ** **** in * ****** *******. **** ***** lay *** * ***** ***** ** a "***" **** ** *** ********, or **** *** **** **** * verbal ********* ** ** * ***** grant ***** **** *** ****** ***** for *** ** ** **** ** start **** (**** *** * ******** traded ******* ******* * *** ***** all, ***** *** ******** * *** of ****** **** **** ******* ** deal **** ***********, ************ ** **** financial *****).
****** **** *** ****** ** ****, please *****.
******** *** ******* ** *** *** title *** ** * *** ****** carrot; **** ** **'* * ********* agreement *** ***. ** ***** ** hard ** ******* *** *** ******* the **** ********, *** ** ***** short ****** ***, *** ***** ***** to **** ******* **. *** ** mention ******* ****** *** **** ********* CFO ****** ** *** ***** ****...
** ***** ** *** ** *** an ******* ***'* (*** ** ** independent **********) ************ ** ***** ***********; afterall, ** "***" **** **** *****-** to ** **** *** **** *** who *** **** ******** ********** ** boost *** ***** *****.
** ** **-*** ** ********** *********, it ** ****** ******** ******** ** offer ****** ******** *** **** ****** for ******* ****** * ******* *****. Without *** ****** ***********, ** ** indeed ******* ** *** * **** cash ************ **** ** ****** *** actually ****** *******.
****** ** “**’** *** ** ** something *******,” **** *** *********, **** speed *****. ** *** ***** ****, turnaround ***’* *** **** *****, ** the ******* ******, ** **** *** have *** *** ******* ** ****** from.
***** * ***** ***** *** *** CFO’s ********* *** * **** $**,*** a ****!
* ***** **** *** *** **** is * *** ***** ** ** about * *** ******* ******* *********, this ** * *********** ***** **** like **** ********** ***. ***** **** need *** *** ** ******** *** stockbrokers **** **** ***'* *******.
********* **** ********** ***** *** ****** margins **** ***** **** ***** ***** every ****.
*** *********** ******** ******* ***** ***** are ******** **** * **** ********* to **** ******** **** **. *** Sys *** * *** *** **** taking * *** **** ** **** since *** ***** ******* **** ** pretty **** ** *** *****. ( I ** ***** ****)
**** *** **** ******* ******* ** burg *** ****.
**** **** ****** ****** ******* ******* you **** * *** ******* ******* liability ( * ***** **** ** annually) *** **** ***** ********* ******* liability ********.
**** ** *** ** *** *** piss *** **** ***** ******* **** massive **** ********* ** ******** ******** and **** **** ** ***** ********* retroactive ** **** ***.
*** *** *** ******* ******* **** shipping * * ****** ******* **** but *** ***’* ****** **** *** longer **** **** ***, ********!!!!!!! **** of ** *** *** *** *** notification **** *** ****** , **** my *** ****** *** *** **** about **.
** * **** ** *** ***** management * ***** ** ******* ** get *** ****** “**** ****” ***** up!
*** ******* *** ********* *** ** the *** ***** **** ********** ** suing ****** ********* ***** *** ***** falls ** *** *** ****. *** your ***** ** *** **** ** top ** *** ****.
********* *** ** *** *** ***** that ********** ** ***** ****** ********* where *** ***** ***** ** *** too ****
*** ******* ** ****,***** *** ***** *** ****** * press **************** * *** **** ********** ************ to ***** ***** ****** ******* ******* *******:
*** *** ***** **. **** **** right *** **** *** *** **** a **** ** ******* **** *** sunset.
#*, ** ** *** * *** theory. *** *** ***** ***** ** worth ***** ** **** *** ***** is ******* **. *** *** *** is ******* **** *** ***** *** Honeywell ***** ********. ****, * ***'* know.
** *** ** *** *** ***, let ** **** ***** ******* *** made * ******* ** **** **** shirt!
***'* ******* ** ****** ********* ******** **** *** *** CFO ********* *** ***** ******:
*** ***: ** ******* ********* *** is *** ********* ******** ** *** news, *** *** ***** ** **.
** *** **** ****, *** *** the **** ***** ******** *********** ** cover ****.
*** ** ** *** ******* ******* ** ********* ** **** *********** news.
*** ****** ****’* ** ******** ************* wrong ** ******* *** *** *******. I *** *** *** ** *** one ** *** *** **** ***.
**** ****** ********* ** **** **** Welch *** ..... ****** *** *** numbers ***** ******** ** ********* *** A/R. **** **** *** *** ** these ***** *** *** ** *** qtrs **** ******** *** **** *****.
*** ******* ** ** ****
**** ********* **** *** ********** *** upgraded ** ******* ***;
** *** **** ****, ******** ******, the *******’* **** ********* *** **********, was ********* ******* ***** ********** *******, effective ******* **, ****...
** ******* ***** ********** *******, **. Geddes **** ** ******** ** *********** in *** ********* ****.
**** **** *** **** ****** “******** to ***********” *** *** **-*** :)
***** ******** *********, *** ***** *** virtually ********* ******** *** ****** ** end *** ****:
*** ******* ******* ********** ***** **** them ****** ** *** ***** **** the ********* ** *** ******** ********:
**'* **** ** ***** '*' ***** and *** ***** **#**************.#*************, ****** ********** *** *** **** of *** *****#**************** ********* *** ******* ** ** found.***.*******.***/**********
— ****** ***** (@***************)******* **, ****
*** *** ******** ** **** * tough ***** ** **** *****. **** have *********** **** *** ***** ** Anixter, **** ******, *****, *** ** the *********** ************, *** ************* ** many *********. **** *** ** **** their **** ** ******** *** ***** value ****, *** ** ** ******* they *** ******* *********** *** *** value ***** ******** ****'* **** ** otherwise ********. *** *** ***** / counter ***** ****'* **** *******, **** operate *********** "***** *******", *** **** a **** **** ** *** ****** out. * ***** **** **** ********* of ******* ** ** ******* *** (or **** ** **** *** ******* slows ****). ** .** *****.
* ***'* *** ******* ***** **** long ****. * ********* **** ** residential ******** ***** *** ***** *** so **** ***** ********* **** *** doing * ****** *** ******* ***** brand ** *** ***** ** *********** pros. * *** *** **** ***** been ********* ** ******* ** ******* their ********...***** **** ***'* **** ** do ******** **** **. *** ** least *** *** *** **** ***** out *****.
"******* ******** *** **** **** ** supported **** ********** ** **** *** feel ***********, ****, *** ******, ******** as ** *** **** **** **** when ***'** ***."
***'* ******* "*******" **** ******* (** under *** ****** ******* ****). ** they **** ********, **** ******'* ** in **** *********...**** **** * ***** price ** ** * ********** ******* that ** ******* **** ********** ************* in *** *****.
*** ******* ******* *********., ******!!! **** had ** ******** **** *** **** must **** ***** **** *** ********* was ****** **** ***.
* *** *** * ***'* **** much ******* ** ********** ** *** ADI ******** *** **** *** ***** sales *****. ***** ****** ** *** Chairman *** * **** **** **** he ** * ***** ***** *********** and **** ** ** ** ****** in ***** ***** ** **********.
******* ** ******* *** *** *** were ** ******** **** ***** *********** Q3 ******** * ***** ***. *** stock ***** ** ***** ***** ***** $10.
*** ******** **** ************* **** ******* *******.
*** *** ***** * **** ****** for *** ******** - **** ** value ***********:
**** ** *** ***** *********** ******* prior ** *** ****-*** **** *********. In * ******* **** ****, ******* costs **** **********, *** ********* *** packaging **** **** ** ** ********* every **** ** **** ***** ****** strong. ***** *********** ***** ** ****. Before ** **** *** **** *********, these ***** **** ******* ********, *** we *** ****** *** ******* ** that ** *** ***** ******* ******** back **** ********** ** * *** priority
***** ******* ******** ** *** ***** engineering *******:
*** ******** ** ***** ******* * transformation ***** *** **** ******** **** are **** ********** **** ******** **** are **** **********. *** ** ********* did *** **** *** ***** ****** on *** ***** **** **** ** continue ** ***** ******** ***** ********
******* ********** ***** ****-****:
** **** **** ******** ******** ** direct *** ******** ********* ********* *** spin-off. **’** **** ******* **** *** suppliers *** ******* ****** *** ** rectify ****.
* *** *** *** ** *********** how **** ****** ****.
*** ***** ****** ** ***** *** security ********:
*** ***** ****** ** * ****** drop ********** **** *** *********** ******* of * ******** **** * ***** OEM ******** ********. **** ******** *** secured ** **** *** ***** ********** began * **** *****, **** ****** ramp-up ** ****.
******** **** *** ********* *** ***** on **** *** ** ** * new ********:
* ****** ********, * *** ********. We *** ********** *** *** ** order *** **** $** ******* *** Q4. **** ******** – ***** *** no ******* ******, ******* ******. ** are ***** ** **. **** ******* for ******* ** ***** **** ** delay. *** ** *** ******* **** that ******** ********* ** **** ******* that *** ** *** ******* ******** as ******* ** ** ***.
******* *** *** **** ** *** year - *** ********* ****, **** of ******** ********* ****:
*** ** ******** ** ****** *** year **** ****** **** **** ******-***** revenue ****** *** **% ****** ******. Products *** ********* ** ******** ** deliver ******* ****-****-**** *********** ** **** seen ** **.
******* ** ** ***** ** ********* video ************:
**’* ********* **** ** *** **** mandates ** ***** ******* ** *** requirement *** ****** *******, ***** ****** be **** ******* *** **.
"******* ** ** ***** ** ********* video ************"
*** ** *** ***** *** * firm ** ********** ** *******, *** they **** ** ********** *** ***** in ***** ***** ********* *******. *** example, ******* ********** *** **** *** in ***** ** ********* ***** ************ to ******* * ***** ******* *****, and ******* ********, *** ** *** same **** **** ******** ******* $***,*** to *** ***** ***********, ****, **** is ******** ** ******* *** ******* VR-Verified ********, ***** ****** **** * few ********* ***** **** ** *** expense ** ********, **** ****.
***:******* *** ******* ** **** ****, ****** '****** ****** ******'.
****,******* *** **** (*****) *** *************** * ***** ****** ******* ******* the *******.
* ** ***** ******* *** **** to ******* ******** *** ******** **** contacts *** ***** ******* *** *** Lyric *****. **** ***** *** **** out * ***** ***. ** *** looking **** *** *** ****** ** alternates ** ***** *** ***** *** residential/SMB ******.
**** **** **** *** *******, *** stock ** ** **% ***** ***************** *** ** ******** ****.
*** ***** ** ***** **** **% since ***** ****** *** **'* * positive *******, ** ***** *** ***.
****** ******* ** *** ********** ***** is **** ***** **************** ******** ** *** ***** ** Resideo,****** ~*.* ******* ****** ***** *** CEO ************ *** ****, *** ******** *.* ******* ******, ~6% ** *******'* *****.
********** ***** ** ****** ****** *** ****** **********, "******* ******* **** *** ********** ***** and ****** ** ***** ********* ** an ****** ** ****** *** ******** value *** ************".
******* *** *** * ********* ***,**** ******. ****** ****** ** **** *** 10 *****, ****** * *-**** ***** as *** ** ****.
****, ** ***** ** *** * huge ****** ** **** *** ******** security ******* *** ************ **********. **, wrong ***.
* ***** *** ** * **** thing, *** *** *******, * ***** that **** *** ******.
** ***** *** *** ***** ***, and ***** ******** *** **** *********. While *** ********* ******* ********* ****** and ******* ****** ** ***** ******* its *** *******, **** ** * powerful, ***** ******** **** ** *** need. ***** **** ******* *** *** problems ********* ******* (**** ** ******* because **** **** ****** ** *** customers).
***’* ***** **** **** **** *** their ****** *** *** **** ******* companies **** **** *** ** *** muck.
** ***** ** *** ********, ****** their ***** ***** ******* ** ************* as *******.