What did anyone expect OSH management to say to vendors??? That they were going to file BK next week?
About 10 years ago I attended the annual meeting of a challenged insurance company, Penncorp Financial Group. At the meeting the CEO assured all of us that things were ok in the near term and he was confident that he could, and I quote 'save the enterprise'. He saved it alright, a couple months later he handed it over to creditors in a BANKRUPTCY! Lucky for me sold shortly after the meeting, the guy just seemed to cagey.
Unless the CEO said explicitly I WILL NOT FILE BANKRUPTCY, then he's probably going to file bankruptcy.
p.s. There was a retired guy at the shareholder meeting, he used to post here on Yahoo as EZMonet, he had a boatload of PFG stock. He trusted what the CEO said and rode the stock into the ground. A real shame, he was a nice guy.
p.p.s. Penncorps Board gave the CEO a nice $3 million retention package to stay through the bankruptcy. He got a new mansion, shareholders got ZERO. If you EVER think the stock market is fair, you are a complete fool. If I owned this stock I'd sell every share tomorrow and NO I AM NOT SHORT! I was actually thinking of buying prior to the bad news.
The call was very bullish with the CEO and CFO saying that margins were stronger then last year and that BofA and Wells Fargo were supportive of the company going forward. Bascially, the message was please do not cut us off everything is fine. The WSJ article is an over reaction. Take the source for what it is worth.
Thanks for the color. Did they mention how Q1 sales are going? Also did the comments on margins pertain to Q4 or Q1 or not specified? Did they open it up for questions? If so, how many were there and were any suppliers concerned? Did they discuss their capital structure and potential changes?
Thank you for the info. This is for vendors and not investors. If the company restructures vendors are likely to get paid because they want them to continue to deliver goods. Vendors should not be overly concerned.