You're right. The next report. The next report is really about the veracity -- the HONESTY -- of this management team. So here goes investors again, with a relatively new management group, and we have to sort the B...S... tea leaves to figure out what happened.
I do tend to think they got a perfect storm in the last quarter, with their marketing failure probably really contributing. I don't know about you, but I saw about zero ads for these guys.
What is it about advertising for SCSS? A few years ago they win awards for their ads, and now they can't figure out how to market this.
Some investors take the approach that one earnings miss by a company means you should run for the exits. Management of course is telling us that there was a blip in the quarter, that was not really reflective of their trend. So what do you do? It seems as though they have a story they are rolling out that makes sense, but I thought they did a #$%$-poor job of explaining what happened. And that just re-emphasizes for me the risk that they are not disclosing how screwed up they are vis-a-vis competition.
The nice 25% drop in the stock price makes these decisions easier. I had a big position, but SCSS has mercifully reduced the decision about it as it now has significantly less risk and meaning relative to the portfolio. Thank you SCSS management!!
I fear we will be sitting here in three months and hearing more BS about what one-off thing happened to screw the stock. But if you have invested in this, you have already accepted what management says, so how do you sell here, after a 25% drop, if they are telling us everything is fine. Lovely place to leave investors. SCSS management are not favorites right now.