I understand the sentiment is pretty negative on this board. I understand why- however, my view is that buying in the $1.80 range offers a compelling risk/reward.
The results from the quarter last week were terrible. Now we know why they fired the CEO. He loaded up on inventory and prices were soft- thus, margins were bad. I find it encouraging that the company made a in management when it became clear he wasn't the guy.
Housing starts will continue strong and the renovation market is picking up. Structural margins will improve from here- I think you've seen the worst things are going to get and all the negatives are priced in now.
In the next few months, they will announce a quality CEO and results will pick up. All just my opinion.
do you really think one guy (ceo) is solely responsible for this dreadful performance? and do you think one person (new ceo tba) can really turn it around? I believe there have to be more underlying problems. in order to regain market share, they will cut prices which reduce margins. I don't see them making money until q2 next year if they're still in business. but at $1.75 per share it's certainly worth taking a risk. Feinberg owns 48 million shares, he most know something. time to buy!