I like JOSB and MW as companies, but . . . The composite PE is now 30X, about twice the norm for a slow growth retail sub-sector. No way 'synergies' can cover all of this. Expect a tumble during the next couple of months.
Agree. Both JOSB and MW filed their 10-K's yesterday (4/1). JOSB has declining gross profit and operating income for past 3 years. MW shows declining sales, gross profit and operating income for past year. Financing package for acquisition at $2.2 billion means approx $110 MM in interest annually. If management can suddenly find 100 - 150 million of cost savings, they should be fired for not finding it sooner.