Cosmed, the Company’s cosmetics subsidiary, was reclassified as a discontinued operation in the fourth quarter of 2012. The Company is seeking to exit this business in 2013. The financial impact of a sale or other disposition is not expected to be material
right, I finally saw that. Too funny. Management acts like its a nothing deal. 2-3 years ago when they dropped several million buying the make-up company, I remember thinking and saying on this board "what the heck? What does this management team of small time level finance guys know about the make-up business? Sig management has nothing to offer in this super highly competitive multi-billion dollar industry and it's going to get its head handed to it. The whole entry into make-up manufacturing sounded like some hare-brained scheme one of Sig management's wives talked them into." And now, of course, 2-3 years later, Sig just glosses over that the business was a total bust. No apology. And when Sig says the financial impact of a sale is "not expected to be material" I think that's because Sig already wrote off the 3m or whatever it spent out of pocket for the company. I think bottom line this business cost Sig all 3m or whatever it was in cash of shareholder money.
It is what it is. We're multiple years into Sig management running this company. They started with a mountain of cash and 900m in nols. That's it on the business end. It was all opportunity. An investor's dream. The company could have taken the mountain of cash and put it in an index fund and we'd be trading at $2 right now. Instead, Sig management has taken multiple millions in cash out of the company to pay themselves and given themselves multi-millions more in stock and stock options and, as far as I know, they've never netted a dime for the company. How can that be? How can they possibly keep their jobs with such a performance history?
Someone, anyone defend Sig management's performance to date. All I'm hearing from anyone on this board is that hopefully the company gets turned over to Zell's team which is, frankly, just another way of saying let's get rid of this management.
Glad they got rid of that sinking (stinking) ship. SGGH was financing that wreck once the bank said "get me out of this mess" I kicked and screamed when they bought Cosmed but was ignored... Shows the class of folks running the show back then... I feel that is all going to change in the future. IMHO!!!!!
Shows the class of folks running the show back then.
Hah? It's the exact same people running it now. Management has not changed. Only difference is that VP Craig--or whatever his name is left--but of course, they're still paying him and gave him a boatload of shares and options in exchange for him agreeing to vote for existing management. How this company can use shareholder money and shares to have a departing officer promise to vote for entrenched management is beyond me. And to show both sides true nature, the departed tried to strong arm management saying he wasn't going to vote for them unless they put him on the board and management's reaction was to sue him. Such good guys running this company, don't ya think?