DELISTING could be any day. Cosi is DEFICIENT in meeting the $2.5 mill equity requirement of nasdaq. COSI book value now is essentially zero... And this doesn't consider long-term lease liabilities which are off the balance sheet. LEase liabs stand at about $30 mill over the next few years.. To prevent delisting COSI would have to do another disasterous rights/stock offering at 75 cents or less.. And you cannot do a rights/stock offering when/if revenues are still falling off a cliff (only a total fool would take part in this).
So how's RJ gonna spin the latest LOSS REPORT? I believe more stores were closed , so revenues will continue to fall. bad bad news all around. And as we've said, the new DEBT is secured by all assets--and anyone with a brain can see these type of sleazy deals are usually a precursor to a bankruptcy. After bankruptcy RJ and Lloyd will simply walk away with all profitable stores.
Serious conflict of interest there. This is CRAZY!
How does the SEC continue to allow this gig to be a public company?
The shares are worthless AND the second loan, the $2.5M one, is also worthless if the first loan can't be paid.
This thing is getting uglier the more I read into it.
Shares are worth ZERO if this can't be paid. This earnings call and the next will be VERY interesting. If they continue to burn cash at current rate, they will be delisted and will need to print alot more shares as a pink sheet stock.
Somebody should put this out of it's misery somehow and shut these fat cats off.
You and another poster or two really have this company dialed in. Keep up the good posting!
like I said, cosi is a management retirement vehicle, nothing more... they've kept this DISASTER running for over 13 years now simply to fund healthy lifestyles for each successive management group. RJ and crew are the latest group of clowns who are already looting the coffers and getting tons of free shares. Ask yourself---how many homes have been provided to cosi management via shareholder funds?
over $100 million in losses over 13 years for a company that sells coffee and bread. think about that for a second? and every year was LOSSES. All historical execs at cosi should be sent to JAIL
In what world does 2 unproven execs get handed 1M shares (over 5% of company) to come in and run the business into the ground? That's over $1M right out of the shareholders' pockets.
How does the company justify requiring a potential franchise owner to have $1M in net worth and $750,000 in liquid assets to open a store? Look at what the market is valuing each of the company owned stores at, around $305,000 each. And even that is hard to stomach when you consider the losses and competition out there.
This shouldn't be a public company just for the sake of using shareholders as an ATM to fund these thugs. I think I will attend the upcoming CC just to see who these thugs are. How could anyone buy a single share based on the past failures of this company and it's inability to earn a profit in this "booming recovery"? The stock market has TRIPLED in just over 5 years while COSI is sinking to the bottom of the ocean.
I've never known a good company to ever need a reverse-split. Good companies split shares with growth and pay dividends to shareholders. Companies that use reverse-splits often use shareholders as an ATM as well.
So we are really looking at a .28 stock with negative cashflow and very little cash left. Not really the type of company that can afford to pay a CFO $400K+ per year including stock and bonus.
and now DEBT sits on the books for the first time ever.. hahaha.. yea things really looking up eh? The casual eating space expanded wildly over the past 4 years, so cosi is completely DOOMED now. Every corner has a casual eatery... ie , five guys, Panera, fatburger, subway, chipotle, wendys, buffalo wild wings, outback, baja fresh, qdoba , red robin, etec etc... Every company is intensely competitive.. and when it comes to cosi--who's gonna wait 15 minutes for a simple meatball sub? and then pay a premium for it? NO ONE, they'll hop into subway instead and get a hoagie in 2 minutes.
these fraudsters use every excuse in the book
"it's the landlords fault"
"the floor staff is to blame"
"the weather is still bad"
"the dog ate my homework"
and now RJ is the "great plan"
hahah... he's just some underwater fool who can't wait to unload his stores back to cosi corporate.
there is WAY WAY too much competition out there----Five Guys, Panera, Chipotle, Mission burrito , Qdoba, Baja fresh, subway, wendys, applebees, Fridays, macaroni grill, unos, etc etc.. etc.. COSI simply is DOOMED... COSI is so far behind the competition , it is a comedy act. The Big restaurant boom of 2010 thru 2013 has created a VAST wave of competition.. as a result many incompetent firms like cosi will simply go belly up..
and now more suits hired, $100,000 shareholder cash paid to suits just for a handshake.. this is a comedy of errors and THEFT of shareholder funds..
The concept is simply BROKE at this point.. they've #$%$ off so many customers, the damage is irrevocable at this point.. And once broke , dont' fix it.. only option at this pt is to close 1/2 of stores and declare BK...
Meanwhile sales are falling off a cliff , 1/3 stores should be closed, service is way too slow, and corporate overhead is wildly high... AND NOW they hire more suits... ahahhaha.. Sorta like throwing gasoline on a house fire.. LOL
i'll bet the handshake alone cost shareholders $100,000.. this is a laughing stock of revolving door of greedy maggot execs and managers... all of whom FAIL miserably and get a bag of money on exit.
Same basic cause for bankruptcy... Boutique stores don't work, too much excess space with wildly high rents, very few customers ever come back, way way too much competition opened over the past 5 years..
it's running on cash fumes, the recent debt raise is secured by all assets, RJ is just another high salary chucklehead, sales continue to fall, 1/3 of stores still must be closed, many more writeoffs and shutdown costs coming with no way to pay for it, the service is now bad as ever, eddy is ready to dump his free shares, ... hey what's not to like/?
You sure are obsessed with this stock which no one else seems to follow. Just sitting here with your bear case day in day out alone. How sad.