I can tell by the plunking sound of management selling their SGA shares.
Mr Goldstein sold 4% of his remaining shares on 11/9/06. Are we going to see a repeat of last Nov/Dec when he sold off 50% of his SGA stock before the slide into a single digit share price?
If this stock has bottomed, I would think that management would be buying, not selling. Again.
The US economy is going in the tank--the USD just broke 84 cents last week. The overextended US consumer is on borrowed time...which means that the retail sector is on borrowed time...which means that companies that make their revenue from selling advertising to retailers are on borrowed time.
Don't expect too much from the political advertising, either. They may be able to sell more commercials during a political season, but by law all those political commercials are required to be sold at their lowest rate available no matter when they run. There's a big difference between the amount you can charge for morning drive versus the overnight. So that's a mixed blessing at best.
This stock won't see $10/share again for a long, long time. And if it does, you can bet that it will be due to inflation...by the time this stock gets to $10 you'll probably also be paying $6 for a loaf of bread, so how much didja gain? That's the real kick in the teeth with stocks like this--even if they do manage to eke out a small gain, you're not keeping up with inflation. A year ago this stock was $13.00--now it's trying to claw it's way back to $9.00...without much success. But you haven't just lost the 33% of the share price drop--you're dollars are worth less than they were a year ago too, which compounds your loss.
Stocks like SGA are NOT the place to be when the dollar breaks 80 cents....which is gonna happen in the next few months. Now is the time to be investing in real assets, not placing bets on the health of the retail sector.
Wow. Can I call 'em or what. Took a little longer than I thought it would, but retail is starting to look sickly, and the dollar is hovering around 80 cents. And SGA is feeling the pain. SGA will go down the tubes with retail.