Will this stll go lower with more lackluster news or has it finally hit bottom? The stock price is significantly lower than the very depths of the financial crisis. Bebe won't use any of the excess cash to buy back stock even at these depressed levels or pay any special dividend.
Forever 21 wouldn't be interested in Bebe. It is doing pretty well on its own. The only bit of good news for Bebe in the recent 10-Q is that $19.8 million of the auction rate secruties (ARS) were settled for par. Bebe now has $181 million of cash ($2,14 per share) plus another $41.4 million of ARS ($.49 per share, which includes an impairment charge of $6.7 million). Without the impairment charge, the gross ARS is $.57 per share.