Lubell's compensation was reasonable until he was forced to sell most of his stock to settle his divorce. Then the compensation committee had to increase everyone's compensation to justify increasing his. TRLG was consistently losing wholesale revenues but since their retail strategy was well executed they could afford to since their margins were expanding. JOEZ has done incredibly well with wholesale but their margins have been contracting. They have got to get retail moving in the right direction and get some substantial margin expansion to get this thing noticed and I expect they will. Hudson has no outlet footprint at all and could make an immediate impact. One thing that TRLG did that made a huge difference was to build their outlet sales up by creating items specifically for the outlets which had higher margins than their full price stores. They didn't get $9 per share in cash by accident. And, in case anyone cares, prior to the Hudson acquisition, JOEZ had a book value of around $0.50 per share exclusive of intangible assets. Since the acquisition JOEZ has a negative book value exclusive of intangible assets. The point is that JOEZ had in fact been building some equty for shareholders, albeit at a glacial pace, despite the structurally disadvantageous buyout and a couple of missteps. And book value can be somewhat meaningless but another interesting thing about TRLG was that even when they had a disappointing quarter they were still building equity. I remember a quarter where they missed badly on sales and earnings and yet equity increased over 5% quarter over quarter. I would like to see JOEZ manage that.
No the simple moving averages are just that, an average number. As the average stock price of 50 days crosses north of the 200 day average, that's when the signal occurs. These numbers are dynamic, so we can expect them to increase as this bullish move takes place. It's a pretty cool signal. Plot these out on a chart and you'll see what this looks like.
Google Golden Cross and you can read several articles about this.
Sentiment: Strong Buy
50 day SMA is at $1.25
200 day SMA is at $1.27
In the coming days we'll see the 50 day cross over the 200 day moving average and this bullish signal is given.
Have a great weekend all...
Sentiment: Strong Buy
Retail lost money last quarter which would not be such a big deal if it weren't for the fact of management's delusional projections they gave at presentations during 2012 and 2013. Their inability to gain any traction on their retail strategy calls into question their credibility. That being said, their competency is on the manufacturing end so there should be overall improvement. I think they will have to bring some new talent on board to fix retail. When TRLG committed to pursuing a retail strategy ,after paying Goldman Sachs a small fortune for their advice, they spent another small fortune on consultants to optimize it. JOEZ was unable to do that due to the majority of their cash flow going to Mr. Dahan. Maybe the increased cash flow will give them the opportunity to get it right.
I think lot of shopper prefer to shop at Macy's, Bloomingdale and so on to compare brand to brand and price to price. Oh well.
JOEZ wholesale business has lead to its profitability and not its retail business. Their retail business seems to be operating breakeven for the most part. The important thing is that they cut variable costs following the Hudson acquisition and capitalize on the incremental revenue.