I apologize if some version of this message comes up twice but my previous post didn't appear to show up. Responding to the question of share value for an aquisition of WWW, any price would be based off some multiple of projected EBITDA (determining that multiple is the art of the deal). This multiple is further supported by the brand/product/market share/technology which an acquired company brings. In my analysis, a sale would fetch a price of $17 - $18/share. IMO a sale is probable due to the flat financial results, strong brand and customer loyalty, and weak management with a limited amount of stock ownership. If you are waiting for $30/share again, my belief is that it will not get there. Of course, you may get equivalent value from appreciating shares in an acquiring company. At say $17/share, you recieve a 45% gain from todays price. Recognizing that it is not .com type returns, even if you must wait two years it is pretty respectable, especially given the minimal downside risk. The price I stated above would still be fair value even if we see the stock at below $10 again. So long as management continues to plod along it is only a matter of time before someone else comes in to do it better. Could the company remain independent? Of course, but they would have to reinvent themselves and do things that have been mentioned on this board such as internet commerce and better advertising. The real question is whether they are capable/disposed to do so.
if you want a low risk trade, that will preform as well as most funds, www is it. purchasing this stock anywhere under the teens is a good investment,not to say that you will never be behind, but www aint going nowhere. myself i got in at 10.50 and out at 12.60 and have plans of re-entering at around 10.75 and this time i will hold some shares past the 15 mark.....that is, IF I am able to re-enter around the 10-11 range. I also believe that www stands a great risk of being bought out. I say risk, that may be what most investors want, but mang. is taking a great risk by letting stock prices lay here like this. a buyout would probable mean mang. jobs where gone. there where some rumors that stride-rite had some intrest but only time will tell. i say get long and forget it. the nice thing about www is that the market shouldnt effect it much its on bottem already so get long and dont worry when you hear that the dow is down 400 it dont effect us.......good luck all......both sides shorts and longs.
Why the heck would it take two years for somebody to come along with an acceptable offer for WWW? The industry hit bottom last year; I would think now is the time when an offer would be made.
If management is so weak, how would they last another two years? Well, I guess they could, considering that analysts are not interested in this company, small shareholders are passive, and the board of directors appear to be around just to collect their hefty fees.
OK, let's try to be constructive. Would the acquirer likely be another shoe company? Which of the companies have shown any tendency to innovate and adapt to e-commerce and the Internet?
Or perhaps a specialty retailer might like to acquire the brand. Or even a catalog company such as Eddie Bauer, Lands End, LLBean. I'm just throwing out names. Somebody help me.