I want to congratulate all of you JTX longs. This is a good day for you. The company has decided to go on to 2011. A 15% cut in the corporate offices. The banks came up with a way to restructure the debt that keeps them operational for the next 8 months.
The next question is the RAL situation. They state in the press release they are looking for 100% RAL coverage. At this point the industry trend is to eliminate RALS. Republic is the RAL provider for about half of the stores. The rumbling is that they will not be doing RALs next year.
So perhaps once this is announced that will be the final death blow for this company.
The other fallout will be those franchisees that will not renew.
Now we are in the off season and we shall see how this all plays out. Next announcement will be earnings in mid-June.
Again congrats to the longs as you live to see another tax season (maybe).