1) FRZ was a $20 + stock before the DOJ investigation which is now over.
2) FRZ has a $40 MM to $50 MM EBITDA run rate. At typical valuations (12 x EBITDA), FRZ would be worth $20.
3) FRZ is reporting on Thursday for its busiest summer quarter that had RECORD heat.
4) Insider buying.
5) Small tightly held float.
6) The settlement of the DOJ investigation will eliminate legal expenses going forward, improving the bottom line.
If you are short I suggest you cover Monday first thing. FRZ is going straight to $5 +.
here are a couple of additional positives for FRZ
1. First rate management team that has been buying stock.
2. The equity is basically an option of the future of the company given 75 million market cap and 450 million debt.
3. FRZ was the target of a 1.1 billion takeover including debt that blew up in 2007.
In reference to point No.3, of the last message, what do you think the stock price offer would be today, if a company wanted to buy them? The market is much weaker than it was a few years ago, and they have more debt.
Yeah for sure. It could be back to 5 or 6 by Thursday. Pretty much everyone on the east coast was at maximum capacity this summer. It just ends up costing more when you exceed your capacity and have to buy or truck ice from other locations.
By my estimation they could end up saving a couple million dollars a year by using thinner bags that aren't as expensive.
Three reasons why it's not going much higher. 1. It is irrelevant what the stock price of FRZ was before the doj investigation. 2. They don't make money. 3. Except for the last quarter, revenues have been on a decline.