Due your DD as I did and I'm in and will hold this for a double.
Here is some interesting fodder to think about. Pure play on happenings and no facts but lets say the company was thinking about selling itself to Manny to go private. The board starts buying shares around 6 thinking the offer will be around 9 with a decent premium. But instead Manny decides why buy here lets get it lower and buy around 6. He sets up a plan or downplays and sparks to help pull the price down as his voting power can buy. Board and him agree time to move on as they were not impressed with no offer as they were led. In comes New CEO as LaCosta is going through leadership change caused by greed. Well Maybe the price sits quietly where we are today under 4. (no reason to be at this price range) Under 4 allows for a norm price premium of 40%-65% and still gets what he wants. But what if its not Manny and another company sees the same thing he does and is working the angle and so we hover at this price till they due diligence and make an offer that looks attractive. But they don't make it to board but to Manny and so we sit here. LOL interesting theory and its fun to think about it but many companies can see value here and I wouldn't be surprised at all to see a $5.50 offer but its between the companies greed and Manny. If Manny wants more this could be quite a play either way I suspect at some point it will cross upwards towards the low 6 range to high 7's so very nice buy early in the year for me and others so I"m posting.
I'm also looking at this one for the turnaround potential with new CEO and the recent Google hire... could seriously begin to fix the death-bed leadership of Manny and the elderly board.
Interesting that the $30M stock buyback will reduce the float to around 29.2M shares, increase Manny's stake to around 62% of the company, plus save $800K in dividends this year. If they did another $30M stock buyback, that and some increased store traffic could make this stock a big winner in 2013. Zero chance of bankruptcy here and more likely a $6+ takeover (going private) offer... which would actually be the best thing for the company at this point...but insider options at $7+ suggest an even higher buyout if store traffic declines can be reversed.
market needs a pullback, so buy on continued decline in pps and hold for 6-8 months minimum.
You nailed the biggest argument on the buyout which was the 30M stock buy back. And leaves the biggest ? as to the timing of it. I agree the offer should be at $7 but its all based on the stocks price look at BBY the previous shows the reasons. No-one will have trouble financing a deal to buyout BEBE but its all in the share price. So that begs the ? when everything pulled forward and we did as well to 4 we should be hovering in the 4-5 range with market in this waiting game. But instead we broke back below 4 and now are sitting still? That doesn't trade in sense on the tech's or fundamentals so I was posing a ? to see if any1 saw what I did. Glad to hear others see it. I believe it pulls to 5 and hovers if no buy - out offer appears and then if someone came forward as it pushes to 6 you would be correct offer range. I don't think it will take half the year to get to 6 but you never know. I'm not going anywhere and I own 11k shares bought in the last 3 trading sessions. It sounds like a lot but that is my standard investment amount in a company.