This was typed on May 12th, but it wouldn't "take" on Yahoo....and I never tried reposting it until now:
5.4 M adjusted operating loss.
Mason had $6.1, in the same 2012 quarter, and $5.2 operating loss, in 2011.
There has been NO MATERIAL IMPROVEMENT in the company's fortunes under Rouleau. This is especially true on the merchandising front, as the company has added efficiencies in distribution and freight, and reduced SG&A. Therefore, on an absolute gross margin (merchandising) basis, Rouleau has ABJECTLY FAILED.
Yet, perversely, the stock has TRIPLED, when Rouleau has NOTHING to show for himself.
This guy is a fraud...at least as far as his performance at TUES goes.
I fully expect Becker Drapkin to be dumping more shares in here. They'd be fools not to.
I would challenge the assumption of improved efficiencies within Distribution and Transportation. If the cost per unit, as a standard measure used, if it is in the $.50 to $.55 range they are maintaining. This number would include all operational and freight costs. If it is higher, say in the $.60 plus range, how can they claim improved efficiencies? The range depends on how many $$ of capital improvements are included or dropped over the years. Over the past 5 years or so, TM has dropped about 50 stores. Sales per store are down to under $1M per store thus it requires several million less pieces produced to support this lower store sales volume using an average of $9.50 to $9.90 per unit. If gross costs are down, it is not due to efficiency as much as a drop in total demand to support lower sales. If costs are up over the same period, any theory of efficiency is simply that, a theory. Any thoughts from the world on this?
The $5.4 million is the adjusted operating loss, under the cult figure, Rouleau, in the 1st calendar quarter. The $6.1 and $5.2 million figures are the comparable Q1 loss figures under Mason, in 2012 and 2011, respectively.
What exactly, I DEMAND TO KNOW, has Rouleau done to improve this business, over the Mason Era? The stock is up roughly FOUR TIMES OVER now! For no reason.
New Cash Registers and Cleaning the store doesn't count? This stock is being run up on a pure technical basis. The chart looks pretty. Price to Valuation is distorted. Becker | Drapkin exiting stage left suggests that company is fully valued. Rouleau's token purchase supposedly helped drive confidence in the company. I have to share LTF sentiment that the math doesn't add up. Looks fully priced at these levels.