Falling Knife with $150M a year in cash flow? Not a good call now. If management keeps buying shares to prop up price to keep the wolves at bay, this strategy will fail. Wolves will buy this, take it private and then IPO in a few years.
Management should return value to shareholders through special dividends not stock buyback. Less tax efficient, but more effective.
management still significantly lowered its earnings guidance for fiscal 2015. The company now expects to earn between $1.90-$2.20 per share, down from previous guidance of $2.80-$3.00. It also expects full year same-store sales growth of 1.5%-2.5%. Hmmmmmmmmmm sounds like one heck of a revision!