<<<Now the value is about 40M and so the question arises; are things really nearly three times better than they used to be? At least in '05 they turned a small profit of 4c/share. Now they lose money, not a lot, but a loss just the same>>>.
That's NOT the question. The question is will True Blue be successful within 2-3 years? If it will, be the current loss is meaningless. Your analysis explains why you're short Jsda. Anyone just focusing on the trailing PE, P/S, etc. would think it's a terrific short. The reason it keeps rising is that Jsda is transforming itself, already achieving 25% penetration (compared to 2% in '06) for the national roll-out of cans, with pure cane sugar as an extra added attraction. The market, including the PIPE purchasers, is convinced that they'll pull it off, that Van Stolk is a branding genius and it will end with a huge buy-out. You missed this as badly as anything any Lbix long missed. One can only imagine how cocky you would be here if you had been long Jsda and short Lbix, and with good reason. As we stand now, you're 1 and 1 on these 2 stocks, as am I. Fortunately for both of us we have much more riding on the success than the disappointment.
If LBIX was not spending the heavy amount of money increasing sales and executive employees to increase the sales of their own brands, which is primarly True Blue... I would speculate they would make profit in excess of 3M a year.
McRae has said before, "if you want us to make 3M a year, we can make 3M a year" I dont want LBIX to make 3M a year.. I want them to make 20M a year... you can only do that by growing your brands and there is still only one brand that has great value and that is True Blue.
40M doesnt seem reasonable given all that this company has, JMHO.
You're just absurd panera. Who cares what LBIX does in two or three years? They don't know, the market doesn't know, I don't know, and you don't know, so wtf were you paying (or not accepting) a 600% premium as of last summer? Why? Because you were blind to valuations and suckered by a fad. Pure and simple. Obviously the insiders and shorts saw through the hype.
You cling to my JSDA short like a drowning man to a plank as though one slightly underwater trade reduces me to your punter status. I guess you didn't hear me when I told you that I view JSDA, LBIX, FIZ and HANS as all part of a fad driven by HANS alone. I shorted them all and made scads of money on three of them. On one I'm underwater c-u-r-r-e-n-t-l-y. But the three gains are five times the size of one loss.
So don't try to equate me with just another punter.