I was under the impression that the main job of a ceo or President of a corporation was to look out for shareholder value. It does not appear to me that the upper management was looking out for TSA shareholders. Now shareholders have to hope that woolworths stock trades up because they stole the company, and TSA should trade together with woolworth. Everyone better hope the employment numbers are good. I am a little disgusted with this deal.
The TSA deal is a bad deal for Woolworth. They have been shedding divisions that have been losing money...now he's buying them... in a mall they will have Lady Foot, Men's Foot, Kid's Foot. Champ's, Kinney and now TSA selling basically the same items in one form or another. I heard Jack had to sell because the next two quarters spelled diaster... Kmart spun this off... no money .... it was a mess and under Jack's leadership it became a bigger mess.The person bought in from Staples told him to head for the exit in a hurry ...that's why it happened so fast otherwise... Jack has too big of an ego and thought he could save it. do you actually think they are going to continue to let Jack run the company he's history within a few months... his ego is as big as Farah and Hilpert's ( Mr 3 dollar shoes). This buyout was a major sell signal of Z stock, Dumb Dumb & Dumber
We all can go to the bar and get bombed, that way we will be numbed and we won't know what hit us!! BTW: I went by the nearest TSA store today, and by BS'ing with some of the sale clerks, they kinda have the same feeling as us, they weren't "happy campers".
I never guessed! I got my stockholders proxy and annual report and thought gee, this looks real good. Immediately returned the proxy with great anticipation. Now,I really feel crushed and the votes already in. I think this is a stupid move on the part of TSA. Financially I can't throw in the towel yet. Maybe Jack can help me forget this happened.
This is our company too. Jack Smith may be the founder, but he and the BOARD OF DIRECTORE SOLD US OUT (small stockholders). What happen to his (Jack Smith) statement "working to increase your return on investment through improved shareholder value" on page 3 of the 1997 annual report??? I don't see any improvement.. So vote against #2&3 on your proxy statement. 1. is to elect four directors(Jack is one of the four) 2. more incentive bonus for top mgr. Read page#12 of the white pages with your annual report under the section"chane in control"and look at what type of $ Jack and other will make onthis deal.
VOTE AGAINST THE FAT CATSAND LET THE SMALL STOCKHOLDERS SPEAK!!!
When the news came out last night, like most of you I was upset with the low price. After listening to the analyst conference call by TSA and Z, it was interesting to see that : 1) Jack Smith sounded very shaky . . .I heard from some analysts that they think that this new company will have a hard time of it 2)TSA will continue to go forward with previously laid out expansion plans 3) TSA can walk away from the deal if the price of Z drops below $20.50 for a continuous 20 day period. This is possible due to the fact that Z's sales have been cut from $8.8bil in 95 to $6.2 billion in 98. 4) The reason they said they merged now was because they said it was the bottom of the industry cycle and they wanted to be prepared to take advantage of mass consolidation in the industry Furthermore, I spoke with a highly knowledgable independent retail analyst last night. The positive from this merger is that it puts valuations on other industry plays. Best play in her opinion is Oshman's. Valuation that Z paid for TSA puts OSH's value (it closed at $6 last night) at $23.10. Z is paying 39% of revenues for TSA. Also, it speeds up an OSH deal due to the fact that they have 1)already cut most of their fat (closed 170+ stores),2) have little debt due to the restructuring they have been going through for the last 3-5 years (OSH is limited to $50mm of revolving credit/debt which can be raised to $85mm for the Christmas season. However, it has to be brought back into compliance with the $50 mm restriction after the season),3) high percentage of sales to mkt cap ($347mm revenues vs. $35mm mkt cap), and 4)dominance in southwest (primarily Texas and California). I AM TURNING A RETREAT FROM THE LOW MERGER PRICE OF TSA BY Z INTO A CHARGE AND I AM GOING TO BUY OTHER COMPANIES IN THE INDUSTRY. OSH SEEMS NEXT LOGICAL CANDIDATE.