Everything you said makes sense and judging from Boston's last reply he is more or less valuing things about the same.
As you know, I have played a lot of retailers the last year and had some success. Even Delia's contributed to that during mid 2009. Now it has settled into such a tight band near its lows it has been harder to "trade".
However, that doesnt change the value I see. Given the latest run up in some of my names this is about the cheapest one I see with liquidity in trading volume and total quick/current assets. So I have and will continue to accumulate. Unless there has been some incredible deterioration in the assets or sales I will not be selling the position like I did the last time since we are now trading below the value of cash, restricted cash and inventory.
Of course, I now have plenty of shares to trade and hold a position, lol.
My quick answer would still be no but it also depends on how much cost they could slash out of SGA. I dont think in the short term they can go after merchandise margins as the landscape for them is still to competitive and I dont think you want cheaper merchandise. Its possible with better IT and pooled buyer powering with private equity with other holdings things could be done in this area.
Additionally, would you keep a CEO and COO? There are some public company costs that go away. I have also thought that they havent tried to cut enough costs which I think sometimes happens when you have to much cash hanging around and the expectations have been so low you dont have quite the urgency that others who have been there before and fallen sometimes seem to have. If they went private you can bet they would trim quick. One majority investor adds real scrutiny.
I still think you need at least some uptick in the economy though.
The better question might be is the company cash flow positive run privately versus publicly. That might be yes depending on a take private price.
Little surprised we havent seen some of our holders making noise about performance, selling the company, etc. They could be doing it in the background.
I have run into a number of articles where Delia's is popping up as either a value play or better company run privately then publicly. But you know it isnt until it happens or a firm comes out and says what we have been saying that everyone rushes in.