This thing is the walking dead. I am now long the March $2.50 puts, and expect this thing to see $1.50, or less, by expiration.
This thing is as sick as Borders was, or JCP is. Magnacca has done more harm than good, with his sku reduction strategy. There is no way it can be fixed now. The obsessing on the super bowl commercial in the conference call shows the level of desperation.
They will be bankrupt by January 1, and shareholders' equity will be negative, by the end of the June quarter.
I'm not even sure the banks will approve all of the store closings. They could call in the loan.
Take a lesson above newbies from another poster above who ignored all the warnings and thought he was smarter than the pros and the facts and chose to just "wing it". You now see him eating crow as reality has set in... It just takes some longer than others.Here is a sample of LTF in his glory as you newbies will relate to these posts.
longtimefollower•Jul 15, 2013 8:32
Have doubled my position since early June.
.Average cost now around $3.25.
longtimefollower•Jul 10, 2013 5:27 PM
Increased my position 20% today...
....including a huge amount bought at $2.81 average, just before the close. I can't fathom why it is down so much. I guess i could be missing something, but i doubt it.
longtimefollower•Jun 25, 2013 3:29 AMFlag
Loaded up today at $3.
.Increased my position about 50%. Now own 1/2 of 1% of the entire company.
I fully expect this to be $4-5 by late summer, and possibly $6-8, by the end of this year.
I think Magnacca is a God....so far, anyway.
Sentiment: Strong Buy
You didn't ask the timing of my sales. The stock did get to the hign $3's you know....and it was a very timely buy, last summer, during the false bankruptcy scare. everything is buyable at the right price. Or almost anything. (I'd buy RSH for a trade, if it dropped to 50cents, in the near term.)