Chanos: I said that shareholders think he is the messiah, but I certainly don’t. I mentioned how dumb the SolarCity acquisition was. A really distraught guy in his 30’s came up to me that night and started poking me – he was poking me – and said “you don’t understand what’s about to happen at Tesla!” I looked at him and said – no, YOU don’t understand.
Chanos: We’ve never been short Amazon except during the dot-com era. What fascinates me is that until recently Amazon had no capital employed in his business. The business went public in 1996 – the last equity offering was 2001. They’ve been FCF positive since 2002. Some of that is amortization, but net of capex and acquisitions its still good free cash flow. Why is that? He employed negative working capital. As long as the business kept growing then it works. …
Elliott Management Sends Letter to Cognizant Technology Solutions Corporation Outlining Value-Enhancement Plan (link)
Lays out path to $80–$90+ per share
Cognizant Technology currently trades at 56,95 USD
Corporate tax rates table by KPMG (link)