supportive, read news from yesterdays, it will not go bankrupt. People are pricing
it as if it will go out of business. Its not happening. Like they say, the stupid tried all wrong things,
before he does the right thing. So, this time he will be right. just watch.
I just looked at the balance sheet and I agree that this is in decent shape. They may need to slow down their efforts to change the look of stores, but they would have to make 2 or 3 more big mistakes to go into bankruptcy in the short term.
That said, I came over here as CNBC was just talking about the bond swaps on this getting extremely pricey. I see the balance sheet as fair, and the company as fair. I see a lot of risk that this will sit here for 3 or 4 years. At this price I am not tempted to buy and I'm not tempted to short either...just moving on.
What's different in the machinery that caused a $550 million dollar loss last quarter? 2200 ground floor associates? That's a cost savings on the bottom line of maybe 20 million this quarter at the expense of personel that might be available to push the higher margin apparel. This is no where near the true price. Sooner or later banks and bondholders will quit throwing good money after bad at it.