Keep shorting it. LUX is just like all other luxury brand
names in Europe that went nearly bankrupt - Gucci, Burberrys, Fila....one time or another, they all went nearly bankrupt because of the inane management keep insisting they can "grow".... just like this idiot management of LUX is saying this morning. Keep shorting until a single digit.
I think you are right. LUX eliminated dividend payout entirely and closing stores. However, the CEO insists that it is still growing. Also, 2009 does not look really good. Actually, it will get a lot worse as the company deals with money losing stores (they have over 6,000 stores!) and declining sales. Inventories will be slashed also. The CEO is either smoking something or denying to see what is happening to the company. It will also slash advertising. Sounds a lot like the company in serious and desperate financial situation. But, the CEO keeps saying "we are still growing and will acquire more businesses." That is a recipe for a disaster.