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Xerox to Eliminate Health Care Coverage For Its Retirees
Rochester, N.Y. —Xerox has announced a change in health care coverage for its retired workers. Xerox says it will no longer offer health care coverage through the company for Medicare-eligible retirees. The change takes place in January.
The company says retirees can often find a better deal in the private marketplace.
Xerox stopped paying for the cost of health care for retirees over age 65 in 2010. What the company is cutting now is a supplemental Medicare plan offered through the company. Retirees have already been paying all of that cost themselves.
It was thought that coverage through Xerox would be cheaper than the private marketplace. But Xerox says it’s seen a steady migration out of the company plan because of increases in premiums. Only about 20 percent of eligible retirees still take the company coverage. That’s about 3,000 out of 15,000 eligible.
George Conboy, Brighton Securities president said, “It is a small negative for retirees. With Xerox, a company that has had its strugglers over the last 10 years, most Xerox retirees has been expecting some form of benefit cuts. Part of the reason Xerox has managed to stay afloat is, they’ve made some acquisitions and they’ve been aggressive about cutting their costs. While this is bad news for Xerox retirees, it’s actually financially an improvement for Xerox’s situation.”
On Monday, Kodak announced that retirees and laid-off Kodak workers will no longer be eligible to receive a lump sum payout for their pensions for the rest of the year.
http://www.forbes.com/sites/dividendchannel/2012/09/14/xerox-corp-takes-over-292-spot-from-alcoa/
Xerox Corp Takes Over #292 Spot From Alcoa
In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Xerox Corp has taken over the #292 spot from Alcoa, Inc. according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating »Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company’s stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true “apples-to-apples” comparison of the value of two stocks. In the case of Xerox Corp , the market cap is now $10.27 billion, versus Alcoa, Inc. at $10.50 billion.
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV’s). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and “tosses out” the biggest 100 companies so as to focus solely on the 400 smaller “up-and-comers” (which in the right environment can outperform their larger rivals). So a company’s market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
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