why would anyone want to own this stock? i say that as a former investor who sold out just above $6 and never bought back in. now that Birkhold is gone, the chances of a turnaround are near zero and cost cutting is all that's possible to starve off bankruptcy. Manny is long past his prime and without his wife the company has nosedived. other than cost-cutting and closing stores, there's nothing much left... the BEBE brand is worth very little even to Sears which would put it behind the KarTrashian line. i'm pretty sure Birkhold left because of internal conflicts with the founder, just like the previous ceo. assume Birkhold's hires will eventually all leave as their top salaries were predicated on a Birkhold turnaround. hate to say it, but this is not much different than Wet Seal in that nobody will buy the BEBE brand over $1. multiple attempts to hyp a sale of the company have led to no offers. once the cash drains, Manny will be forced to liquidate his shares to repay the personal loans he took out and used his shares to pay for his lifestyle. i'm neither long or short, just trying to warn potential bottom fishers to evaluate the real company for what it is... don't risk your capital here until the losses stop. gl
MNGA lands another major order for MagneGas® and sends investors researching its growth potential. Short term gain potential on the menu too.
your suggestions may have merit but it doesn't mean management is on the same track. it also unclear what you know about the ceo before you passed judgement on him.
Look at the hedge funds that have started accumulating this stock (in fairly small amounts initially, but you'll see them grow each quarter). If you study what else these funds own, it's stuff where they are going to force big changes or an outright sale to private equity. BEBE is a perfect candidate for this.
I think they get rid of the "new" CEO and replace him with someone who understands fashion and finance. Could be a woman from Wall Street who covers the industry as an analyst (buy-side or sell-side). She would get the right image and products for the company.
I also think they open "in-store" outlets at a major retailer like Macy's or Nordstrom's. This would be huge as it would transition their business model and allow them to close some more underperfoming stores.
Finally, I think they partner up with a really well known model to get the name out there and use social media much more to their advantage.
Sentiment: Strong Buy
Is MNGA headed to $1.83 now that it has closed another major deal for the sale of its MagneGas®? Wall Street patiently awaits the next big explosion
MNGA gets nod from the Street. Buy now is the chant but why? Could it be news that another order for MagneGas®? Make ready for another potentially huge breakout.
I think that the important figures for the turnaround are:
1. Gross profit margin expansion
2. Higher revenues
3. Better than expected bottom line numbers
BottomLine: the turnaround is in full swing and profitability should return in the 4th quarter. I think theyre being conservative. Low gas prices, higher employment among the 15-30 persons will drive more retail spending in the Spring going into the Summer...which is where BEBE derives most of its profitable lines: Summer dresses
Sentiment: Strong Buy
BEBE has been my worst play this year… I almost threw in the towel until I came across Ultimate Stock Alerts (you can find them in Google)