Odd this is my only laggard in the group. Today I'll be shorting the hell out of apple related companies but still odd. Company has levered cash flow positive. Buyout is over so they can rebuild the company like they want to. They left the losing emerging markets selling that segment to focus back on the core. And they continue to earn money despite the weak economy Obama has handed them. My previous post is still below so not many posters out there other than the short interest keeps climbing which will set up a huge run earnings day one way or the other. See it happen daily on stocks that are shorted. Don't get fooled the company is positive and price estimates are above 8 bucks so we have room to keep going up. I only have 2 laggard stocks out of my whole portfolio so I'm not going anywhere in them just try to post the news others won't. To funny someone said they will go BK. Cash flow is positive and earnings positive and book value even on yahoo is 8.42 a share I have them closer to 7.85 but that's dimes and nickels either way. And boosted to why they asked 10 a share for a minor premium. They aren't drowning in debt like Circuit City or Blockbuster etc. We'll see how it all plays out as I keep saying most companies that try to sell with a good product turn things around because they were focused in right direction and deliver it to prove why it was worth the sell. I still see us hitting 10 bucks this year and will be here all year long shorts. LMAO that shorts believe Linked will be a problem. So Walmart should worry about Target? Plenty of ad room for all and Monster is the steady Walmart in the industry of jobs.
Rebuild the company like they want to? They have no idea how or any plan to rebuild the company. Sal and his team tried to grow the company through acquisition (ChinaHR, HotJobs, CareerOne, etc) rather than innovate. When that didn't work out, they then tried to sell Monster and have so far failed at that. If they had some grand ideas/plans to rebuild Monster as a technology leader, don't you think they would have done that instead of putting the company up for sale? What Sal and his team really know how to do though is buy and sell companies (see Symbol for reference)....Sal has no idea how to be the CEO of a technology firm.
And the Walmart vs Target comparison is weak. Most companies have fixed recruiting budgets with very little room to increase. So if they want to add LinkedIn to their toolkit then they need to cut the budget of something else to make room. And they then sign 12-month contracts to lock everything in place. With Walmart/Target a consumer can easily shop at both....but imagine if they had to make a decision at the beginning of a year to only shop at one or the other for the entire year. And let's say they had a great experience the last time they went to Target (shorter lines, comparable prices, better quality) so they decide Target will be their store this year. Then, Walmart has lost a customer. That's the reality of what LinkedIn is doing to Monster (and CareerBuilder as well).
Clearly they don't even know how to sell a company. Sal and his minions declared for years that the company was undervalued by the street...if that truly was the case then it should have been an easy sale. Unfortunately he's screwed the company up so badly and is only interested in insuring that he is taken care of in the sale, his greed is literally at the point of collapsing this company in on itself.
Sal used the option backdating scandal as a way to declare the legitimacy of his regime and how he was going to clean up Monster. Personally I would take everyone of those leaders at the helm of Monster right now over this inept crew. Sal and company run the company in the ground and continue to load themselves up with RSU's as the stock price keeps dropping so that no matter what happens they are taken care of. Who are the real crooks now?
How can you compare Monster to Walmart? Walmart is awesome at what they do, top of the line! Monster is bottom of the barrel at what they are doing. It is not that they don't have potential, its that they keep doing all the wrong things. Your argument for higher valuation is based on sound management running the company, it is not! Further, MWW is in the technology space, this means the game is always changing and you need to be one step ahead of the curve, not 4 steps behind.
They may find a buyer but the company has lost so much value already that any short out there has already laughed there way to the bank. People buying the stock here and hoping for a return to old valuations are just gambling, there is no evidence to support it. Unless and until there is Monstrous change, this stock will languish.