It was readily apparent Monday that investors disliked
something about
Xerox 's (NYSE: XRX)
$6 billion deal(as announced) to buy
Affiliated Computer Services (NYSE: ACS).
Maybe it was the premium that Xerox was offering to pay for
Affiliated's shares, or perhaps a lack of faith in the deal's
strategic value for the copy machine pioneer. Either way,
Xerox's stock was down 14% at the end of the day.
The move will have Xerox following in the footsteps of
both
Dell and
Hewlett-Packard , which recently bought
services businesses in hopes of kickstarting their underlying
hardware businesses. But will Xerox's copycat move pay
off?
For some help on that question, we can turn to the
collective opinions of the
Motley Fool CAPS community. As of yesterday, Xerox had a
three-star rating (out of a possible five), suggesting that
the community needed to see something more convincing out of
Xerox's business or stock to get more interested in taking
the plunge. We can see in the coming weeks whether the
Affiliated deal bumps Xerox's stock into the upper echelons
of the CAPS ratings.
Even with the current lackluster rating, there are CAPS
members who have scored big points by betting on Xerox.
Member
istilldontcaregave Xerox the nod back in March, and has
racked up 35 points on the stock as it gained more than 70%
versus the S&P's 36% run.
istilldontcare is one of CAPS' All-Stars -- players with a
rating of 80 or greater -- and has managed an impressive
stock-picking accuracy of 63% while racking up more than
1,500 points. Xerox isn't this player's only great call.
Here's a look at a few of the other prescient picks:
Company
Date Picked
Date Ended
Call
Points
CAPS Rating
(out of 5)
AMD
2/2/09
Still Open
Outperform
146
**
NVIDIA (Nasdaq: NVDA)
10/10/08
Still Open
Outperform
112
****
Goldman Sachs (NYSE: GS)
9/24/08
Still Open
Outperform
56
**
Data from CAPS.
So what has this investor been looking at more recently?
Here are a few of the most recent calls on CAPS:
Company
Date Picked
Call
CAPS Rating
(out of 5)
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