Don't get too comfortable with the "big" cash balance...
These guys have burned $213 million in cash since year end and accounts receivable (future cash) is down $110 million over the same time frame. During the conference call there was a lot of discussion about revolver availability (and where was the 8-k on the amended credit agreement), this is a very bad sign if they are positioning the liquidity conversation in this manner when they have all this cash. They know they could be tapping the revolver soon.
I think the CEO's commitment to update the shareholders during the next quarter's conference call is a joke given the magnitude of this miss. There should be a mid-quarter update on the progress made.
You don't fix human resource problems like these overnight. There needs to be some accountability and changes into the upper levels of the organization as well. They probably could de-layer the organization and get a better result...
Their competitors smell blood in the water, the board better wake up as this will get worse before it gets better.
I am not rigid on splitting the CEO and Chairman rolls but Johnson is asleep at the wheel at worst and to be kinder, could probably use the help.
There is no reason this stock won't fall below $3.00.
McDermott has plenty of cash and untapped financial flexibility. There was NOT a lot of discussion about the revolver, only one question by my count. Two, We'd have to see nearly a full years' worth of trending losses to have any concern whatsover. If we're here a year from now and losses continue, you might have a point. But that is wholly unrealistic giving the new management focus toward operational rigor
Well you got six months of your year so far: look at the stock chart, look at the balance sheet, look at the lack of past management focus. Hiring a few project managers who might be better than the ones you fired should fix the stock. The best and brightest alway jump from, not to a sinking ship....
Its a bunch of short sellers trying to put fear into retail holders, let weak hands leave. When their is blood, opportunity exists, and I agree that with the restructuring they have started, and thru improved operations / effective bidding and contract execution they will turn this around. The CEO has a target on his head and will make changes or be ousted. Agree with their capital amount, sufficient and although next two qtrs may be bloody, this should be the worst.