I want to have a bet ON RECORD against this deluded CEO, infamous for his snake oil language manipulations....and a classicly inept board of directors, that appears to be suffering for the last couple years, alternatively, from shell shock, and/or the Stockholm Syndrome.
This sucker is going down. I'll double up at $1.50-2 on the short, and ride it to zero, within 6-12 months...and possibly much sooner
I would say prospects are poor for a sale. I think my worst case scenario (for me, a a short) is a "surprise" bid at $2, that they take. But I highly doubt it. The 1st quarter is supposed to be seasonally their strongest, and they just got hammered, losing 8% of sales on the operating line. If they are running nearly 10%, annually, operating loss as a percent of sales, that is simply NOT recoverable from, and the kind of loss percentage that Borders was suffering from before they went under!
WHY on god's green earth, with the housing market improving, is this company STILL unravelling? My own contacts suggest that Lane has basically collapsed, and they are earning a ZERO gross margin on the $300 some on million that Lane is annually selling.
I don't think a sale is an option any more. And I would expect further material write downs of the brand names, this year. I'm guessing the company will have a negative shareholder equity, probably by the September quarter report.
The stock should have dropped to 60-75 cents, on the earnings release. It hasn't (yet), so I shorted it. (I see $1 as a ceiling of sorts.)