I was impressed with the CFO. He was quite confident in his business plan and said Q1 is going to be dismal and they hope to skate by with the slimmest of margins, but if they could make it through two quarters we have a good chance of making it out of the abyss. He has a plan...it will be razor close...but he was very confident that they had run it a dozen ways and was confident it will work. I'm betting on the guy for now
and see if he can pull it off and make himself a good chunk of change in the process.
Same thought I keep having... The guy knew what he needed to know even before signing on with VELT. This C needed a serious course correction and stop the bleeding. He did it, it was painful, still is, but no pain no gain. This will be back to 4-6 by years end. I really see this selling off until around 1.75-2.00.
This C is now headed to the valley of death and pending decent FCF results and if its margins can grow will determine what kind of C this will be, it needs two solid qtrs of digging itself out of its over-extending.
Remember, stocks are like springs... you can sense this till will keep dropping to the 1.50-2.00 range and hover for a few months.
He would have done forensics on balance sheet before he agreed to join. He must knew exactly what it was and what needed to be done. He has started acting by taking measures which we have to believe will be healthy for the company's future. Sad that short sellers used his honesty as a way to make money & destroy a fine co.