I bet the retail investor must feel good about buying stock at $2.70/share while the company sold a bunch of stock for $2.16/share to a few funds. Here's the release:
Boston, MA - April 13, 2015 - Così, Inc. (COSI), the fast casual restaurant company, today announced that it has closed on a stock purchase transaction with Trishield Capital Management LLC, Janus Capital Management, LLC, Goose Hill Capital LLC, Bigger Capital Fund, LP, Ken Vaughan, and one other firm. These investors have purchased an aggregate of 7,160,766 shares of the Company`s common stock, par value $.01 per share, at a purchase price of $2.16 per share. Gross proceeds to the Company in the amount of $15,467,255 will be used to pay indebtedness of the Company and for general corporate purposes. The transaction closed on April 10, 2015.
Sentiment: Strong Sell
COSI should be avoided, it cost me money. Now I am using picks from Ultimate Stock Alerts (do a Google search for them)
EVERY year since a public company (I think 14+ years now) cosi showed millions in losses . EVERY YEAR.. and now quarterly losses at all-time highs. How does a sandwich and coffee shop lose so much every stinkin year. ??? cosi is not a business, it is a retirement sled for execs and managers... I wonder how many executive and manager homes were paid for with shareholder funds during these 14 years?
The only thing keeping this above $2 is a array of pumpers touting this garbage. Once the pumpers move on, this thing will plummet. Laughable to think that the pumpers think that a 3% SSS increase is "reason for hope". 3% increase doesn't even cover inflation of the food and labor costs. Heck even 100% SSS increase and they'd still manage to lose money.
Sentiment: Strong Sell
I think the folks who are "negative" are looking at the fact that this chain has NEVER posted a profit in its entire history and somehow they keep finding a way to raise money to stay afloat. If you dig in and look at their economics, you'll see that they don't even have a positive gross margin. While G&A is an area of opportunity, it could be zero and this company would not be a good investment. They have closed stores every year for a long time and they have had negative cash flow (aside from propping it up with selling rights, etc). It's not a sustainable proposition. I see no reason for anyone to invest money in this concept but there are some who believe it will turnaround. I'm not sure what facts they base their optimism on.
I've just recently started following this chain and I've noticed these types of comments dating back for some time now. While they may be legitimate concerns, why is there so much negativity towards this chain and its fairly new CEO? Just trying to get a grasp of what's going on.
If it wasn’t for the guys over at Ultimate Stock Alerts (they are in Google, do a search) I don’t what I would do after COSI failed me
COSI let me down, but thanks to Ultimate Stock Alerts (you’ll find them in Google) I am winning again
boston snow was all-time records... so RJ will point the blame, just like all other shceister ceos have done. The real story will be the June quarter, and they'll wait til last day (aug 15) to report the results. if they churn out another $4 million loss in that quarter , this should go back below $1... Heck I've seen much worse chain stores do much better even with loads of debt, but yet cosi fails miserably every year with no debt. But despite the perpetual horrible performance, it appears a pump group is committed to keep the price above $2...laughable ... a fool and his money will soon be parted... once the pump group moves on, this will plummet...
COSI couldn’t be more shamefully low if it tried; what a terrible play! I managed to salvage something by playing Ultimate Stock Alerts (you can find them in Google)
another whopper loss and Q1 2015 will be even worse with all that boston snow. Also $10 mill of RJ's debt is now absorbed by cosi. so the real cash balance right now is $10 mill. The pump crews worked overtime on this one... soon the floor will fall in... cosi will never compete against the countless fast casual around them like Panera, chipotle , etc.. heck even pizza hut destroys them.. do the pumpers have the balls to juice this to $3 or more? hahah... I don't think so... the floor is ready to fall in.. Chain joints have swarmed all cosi locations... sales will continue awful... it's very comical how management calls a "3-percent same store increase" as wonderful news... hahaa.. hilarious.
Having watched this stock for many years, I'm amazed at the number of lives it's been granted by folks who willingly give them their hard-earned money. Once again, another year has come and gone and it was a disaster...again. Net store count down. Revenues...down. Margins ...down. All that led to RECORD operating losses. Even if you back out the presumably one-time charges to move the HQ and terminate some leases (which I bet they'll have to do more of in this fiscal year), you still get RECORD losses and a HUGE cash burn. They are so far from simply breakeven that no reasonable assumption can be made that they'll get there any time soon. Luckily for them, they found plenty of people to buy more common so they are sitting on about 18 months of cash at the present burn rate. This will not survive long term and nobody will be looking to buy it if that's one of your exit strategies.
Sentiment: Strong Sell
Prepare to be blown away, I had my best trading day ever thanks to Ultimate Stock Alerts (look them up in Google)
Can COSI trend any lower; I would avoid it if I were you. I am playing Ultimate Stock Alerts (find them in Google search) instead
Ditched my old service and now I am up 5000% thanks to Ultimate Stock Alerts (look them up in Google)