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dELİA*s AŞ Message Board

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  • robchadwick robchadwick Jun 26, 2010 7:21 PM Flag

    DLIA turnaround

    In 2001 they executed well with the 70's / hippie style stuff. By '05, hippie stuff was on it's way out.. by 2007, 80's influences were big.. DLIA's went from trendy to just blah.

    You can get the 12-19 market while picking up the 18-30..

    Their brand is worthless, as evidenced by their willingness to hawk it selling ad space.

    I'm suggesting they ditch the name, relaunch with a new line and go with either a distinct style, or embrace retro in a big way like has.

    Blowing a few million on this now is still possible. If their game is to just wait for a macro recovery they're going to get crushed and just burn through the rest of their cash.

    I like this stock because of the cash on hand. I'm hopeful that they realize they can't keep doing what they're doing today and will make a change. I keep coming back to the fact that they're selling ad space on their website though. Why the heck would they do this?? Their marketing folks need to go.

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    • Thesis Fund urges Delia's to act on strategic alternatives now
      Thesis Fund Management, advisor to The Flexible Fund, has been in discussions with dELiA¹s board and sent them a letter dated June 15. An excerpt of the letter follows: We believe that to the right acquirer dELiA’s is worth five times, or more, our pro-forma estimate of contribution margin. That translates to an estimated value for the Company in excess of $150M or a share price closer to $5, approximately three times higher than its current valuation. Lastly, as evidenced by the endless string of transaction announcements and boards seeking strategic alternatives, the time to act is now. :theflyonthewall