What I find interesting is that when the stock price was high the company was repurchasing stock but when the stock price started declining, Tommy had the repurchases stopped. I would have been repurchasing stock all the way down, unless the debt covenants prevented that. And even then I would have sought a waiver
Are you guys sure the stock isnt down on the $150 million shelf filing S-3 capital raise?
Defaults on Store credit? Do they cover it in there SEC Filings or on the conference calls? What are their reserves? It appears they are selling their receivables. But are there clawback provisions that could nail them if defaults rise to a certain level?
Stock appears to be very cheap.
I dont like betting against WMT, BBY and the likes but it does apear you are buying dollars for 50 cents.
The S-3 is for a potential sale of 2 million shares which at current prices is less than $14 million not $150 million. The seller is a current shareholder, related to the Stephens Group. It will not dilute current shareholders holdings.
The issue appears to be the companies ability and the Qualified Special Purpose Entity's (QSPE) ability to obtain additional funding for the purpose of funding the receivables generated by us, including limitations on the ability of the QSPE to obtain financing through its commercial paper-based funding sources and its ability to maintain the current credit rating issued by a recognized statistical rating organization;
The other issue is the ability for Conn's and the QSPE’s ability to meet debt covenant requirements
Anyone have the specifics on the QSPE's ability to raise capital or the debt covenents for Conn's?