$148 million plus $100 million debt. Where are they going to get the money. Senea already heavily leveraged. 1:1 debt to equity? Add 248 million debt ? 1.5 debt to equity . Shareholders getting forked.
Two years ago they tried buying this money losing Allen co , Shows you what kind of management Senea has. Next to go broke will be Senea.
I purchased a block of stock a few weeks ago before the Allen's deal was announced. I would like to buy more, however the stock is thinly traded and i would like to know more about the company.I like the breakup fee provisions included in the Allen deal, however like you I question the extra debt load. I like a lot of things about the company such as LIFO, reasonable comp, aggressive acquisition philosophy, etc. I do question the use of expensive preferred stock and the airplane company. Are the jets toys for management or is the airplane business a money maker. I read the 10k, however I didn't pick up on the plane business until I found it online. Is the daughter's position on the board legitimate or is it a case of nepotism abuse. Director fees are reasonable. I am okay with no dividends as long as the company is increasing stockholders' value. Does anybody want to opine on management's capabilities? I would appreciate any input from employees, etc. If the company is successful in the bid for Allen's, there might be a purchase gain upon execution, or as an alternative, plenty for reserves for future expenses. Thoughts?
Joe's take on this is wrong. This is a bid only for the facilities. They backed out of the deal months ago when they wanted to buy them because of debt they owed only to wait till they could buy what they want..pennies on the dollar when they folded. Well that time is here. As for the planes, I believe they are strictly for company use and as a profit center as they operate them for private hire etc.