% | $
Quotes you view appear here for quick access.

Heelys, Inc. Message Board

  • offthecuffff offthecuffff Mar 10, 2009 1:57 PM Flag

    Pay me $25M to buy this company

    According to my level III quotes there are now 91,000 shares sitting waiting to be bought at $1.25/share. If I had a spare $91,000, I'd seriously think of buying them which would promptly DROP the price. If someone is willing to advertise that they have that many shares to dump, no doubt they have a lot more.

    Nonetheless, I'd still love to know why this stock trading this low. I note once again, that if you could buy up all the shares at the current price, you would own the entire company and have $25m more in cash than you spent! Perhaps you could just distribute the money as a dividend.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • -Perhaps you could just distribute the money as a dividend. -

      They did a $1/sh dividend back in December. Maybe they will do another $1/sh for us again. Might be some sellers once they realize they have $1 less equity and cash per share than they thought they boughht if they bought since December.

      • 1 Reply to pocketrocketdreamin
      • Even after the $1 dividend, there is still $2.38 in cash/share -- less whatever cash they burned in the last two quarters. Let's assume that they burned through another $10m (a high estimate but possible), then there is currently just over $2.00 in cash/share. Let's hope the company can get its costs under control.

        I think what investors hate the most about this company is their total lack of disclosure. Obviously the mismanagement isn't helpful either. Only time will tell.

    • The movement in the share price has me baffled. Perhaps very, very bad results are coming--sort of a CROX situation where the drastically lower sales make investors wonder if management will burn through all the cash before the company is right-sized.

      Who would know that, other than insiders? I guess someone with access to NPD's cash register data.

      • 1 Reply to rm552
      • Two things management has shown:

        1) They have protected the cash.
        2) They are not in love with the product. It's just a business, not a passion.

        So, if the sales come in much lower I don't think they'll hesitate to downsize to the proper level.

        Back in 2003 and 2004, HLYS was able to be profitable selling only 700,000 pairs a year or about 1/3 of this year's number. That was with about 25 employees compared to today's 50 to 60 employees.

        They could also go internet-only through Zappos.

        I'm wondering if one of the problems HLYS is facing is unrecoverable receivables from retail outlets due to bankruptcies.