They did it, again. Touting sales gains in the headline of their press release while the gain is due to store openings. Same store sales were down and that is the more critical statistic.
Great "Going Dark" article in Business section of MPLS Star Tribune on Sunday, 11/3. Helps set stage for proper action by GCFB management but will they respond properly and responsibly ? Silence to shareholders is not a good option or sign ... responsible buyout and taking GCFB private a solid option and not that expensive (use the SEC savings !) Let's see how this unfolds but situation remains disappointing to date. Stock continues to slide on the negative environemnt. Another corporate strategy ?
After the recent deregistration announcement GCFB stock price has tanked as investors run for the door. Tried to get info and response from GCFB corporate but have been ignored thus far. Many of us have waited patiently for price appreciation via turnaround but we have lost even more than during the weak operating years. Volume heavy but who is buying at these distressed prices ? Management should take steps to respond to outside investors to clarify their investment, future stake and what options will unfold. This is simply good corporate governance.
A minority interest in a private company has generally less value than in a public company despite the trading volume. The main buyer is management and they control the information and price. Trying to sell to anyone but management has all kinds of liability and legal expense attached to it. This is a huge valuation cut for minority shareholders.
Besides, it is a retraction not an advancement. It's not about growing revenues, it's about cutting expenses and downsizing. I would rather see a sale to another company or a merger, if possible.
I think we all follow the expense savings of less SEC reporting. What is less clear is outside stockholder status and shareholder equity/value. I too have been a longer term owner and watched as things gradually improved only to see share price continue to fall, pink sheet status and now deregistration. Look at today's volume as others head to door ... I think insiders have a plan for themselves but care little about outside shareowners. Company provides little in information to calm fears ...
No big deal. It'll be listed again or they'll buy us out within 5 years. Meanwhile, saving money is good for shareholders. Just hope they don't drop the stock to $1.00 and decide to implement the buy out.