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School Specialty Inc. Message Board

  • buy_schs buy_schs Jun 14, 2012 8:56 AM Flag

    Good report considering ...

    This company was suppose to be bankrupt. Shorts are in big trouble here. A small increase in revenue and controlled expenses will result in big profits on the next report.

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    • SCHS delivered an in line quarter and essentiall guided that next year will be about the same as this year. I believe they are sandbagging since there is a new CEO. We shall see.

      Since all investors need is $50m or so of EBITDA to begin the deleveraging process, the stock should begin to accrete up now that its debt is refinanced and the numbers are out. The next catalyst will be the exit from the Rty 3,000 on June 22nd. That date should be the last great buying opportunity.


      • 1 Reply to garbageinandgarbageout
      • I think the guidance for the new year is are the additional write downs.

        I sold my small position for a quick gain.

        I'm out for now, as I can't tell whether, as you say, they are "sandbagging" on this year's earnings, or not. They should have at LEAST predicted improvement in operating income and/or adjusted EBITDA for the new year. The fact that they were not willing to offer that makes this a "no go" for me.

        If I want leverage and risk, I prefer ZLC, CVTI,and probably even SVU, to SCHS. (But I'll still call SCHS a speculative buy, at these levels.)

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