We covered the first big short here at $4.94 ave, netting over $3.05/share... then we watched in awe as the big institutions actually chased this pos stock (of a formerly fantastically great brand run into the ground) back to $9 before beginning to short it as it eased back to $8.80 a couple weeks later.
Then, just as we thought it would, it cascaded down below $7 where we covered just above $6.80 last week after out flurry of posts to ourselves here (LOL).
As of today, thrilled to see some chumps chasing this back up over $7 again... they must all be over 50 and have no kids to tell them that Quik and the girls' clothing and the shoe company's circa 2001 skateboard styles are all just as dead as the Billabong brand that company's owner wrote off on the note that they considered that "Brand Worth Zero"...
Someday soon, the new mgmt team and BOD for Quik will realize this once incredibly great brand focused on quality and cache lifestyle clothing is now dead... read all of our posts over the last few months to get a sense of reality friends... these brands and the stock are effin hosed... hiring Chinese consultants to restyle the brands is not it, nor is a Chinese marketing consulting company... Where did they get these guys? and what the hell is the Chiat Day background marketing guy thinking??? Teen and lifestyle fashion is fickle; Flush the toilet and start new brands already!
If Billabong is so worthless, why are two companies in a dogfight to provide financing and get a piece of it? Not sure what was learned after the recent BBG report. If you've been following the story write offs shouldn't be any surprise. just a stupid headline designed to draw in readers.
The "brand worth zero" comments were made by management in their press release! They were not made by some rag publication's moron editor. To look at the Billabong brand sales, they are reporting this on an 8k long after it is a fact.
My point here is that zqk has ruined what was once the iconic brand in the surf lifestyle niche. We made a lot of coin trading this over the years, but thing looks very bleak just now. Will they return to quality and find a new following anbd pieces of the old, or is it about $300m of writedowns and a miserable Rossignol butch too late to pull them out of the ashes?
We covered in just below $5, but owning this pending some serious rejuvenation of quality/brand is like buying a hula hoop distributor -- tough when no one wants the product.