free cash flow cut in half means leveraged buyer will have less working capital and
if suppliers cut terms now they will either cut terms or credit lines when banks take liens on AR & Inv at Newco
Schultze has to run new numbers today showing he needs additional $500million in debt or equity
could be just small retail buyers
Schultze has no credibility since he got fired---who is going to invest/lend Newco $4b with someone who withheld info from Board, resigned so as not to get fired and did nothing for 4 years while others ate his lunch
this press release says margins under pressure ---how much?---200-300bps--that's$100-150million
The free cash flow is what worries me. Yeah they had the sales, but what were the profits? The price matching and increased competitiveness is going to effect the bottom line. I don't think BBY can dupe investors like AMZN.