I didn't say they had scruples and I didn't say it was legal. If you want to split hairs then they are awarding themselves any options that were still open in the executive compensation plan. If you find that they just wouldn't do that, then they are having FABU repurchase shares. If you find that they just wouldn't do that either, then I think you have a lot of faith in two individuals who have shown that they cannot run publicly held companies for the benefit of shareholders.
Would be nice quick return. I figured most suitors would be interested in this at 3x revenue which is in your range considering debt. Best case scenario for this is $10 somewhere down the road, but $3-$5 now without the risk of BK is not too bad either. Lots of cash flush businesses with money to burn.....
Based on the actions of CEO and CFO and the inactions of SEC and PCAOB, my guess would be the CEO and CFO are buying up shares in FABU at a heavy discount and are going to attempt to spin-off LibSyn operations via issuing shares in the new co 1 for 1 for existing shareholders of FABU.
I don't think the SEC will stop them as they've taken no action against them to date. The funniest thing and I still can't get over this, is how brazen these two are. Something #$%$ them off when they had Wizzard (I think it was naked short selling) and since then they've had a 'f the world' attitude. Wizzard was changed to FAB Universal. The stock symbol was eff u #$%$ then later changed to FABU). They spun off a home health business and the stock symbol was eff u 2 #$%$TU).
I don't know the proposed ticker symbol for LibSyn, but I can't wait to see the hidden meaning.
If you are trying to play this, I would say @ $2.5M earnings and growing, this has a chance to be valued at $50M to $75M. Sometimes the market goes wild, so these are mere estimates. New co stock could hit between $2.50 and $3.50 pretty quickly.
Again, the SEC doesn't seem to care about the prior lack of control or lack of accountability. If the PCAOB were doing their jobs, neither the CEO nor the CFO would be allowed to be officers or directors of publicly held companies.
Amazon thinks they can do it better, faster and cheaper without Staples. They may be right, they may be wrong. Either way, Amazon will spend with reckless abandon to be the low-cost provider. Staples will need to continue to downsize the retail store footprint to continue to survive.
The fact that the board of directors did not solicit a competing bid holds a lot of weight. However, this won't get voted down.
Troll? Right. Check it out, negative tangible book value of $35.3B not $35B. Goodwill & intangibles stand at $40.9B not $40B. Cash from operations to cover interest is 2x or so. I guess I was really trying to mislead people. Unlike VRX over the past few years.
Debt stands at $31B. So 15 years to pay off debt with operating cash.
Sales need to be growing, not shrinking. Once the dust settles, people will be able to put a solid floor in for the price. Until then, is it really a wonder why this is trading at such a low price?
It means negative tangible value of $35B / goodwill & intangibles of $40B. It means cash flow barely covering interest expense. It means some big cuts and some big asset sales to improve cash flow and improve debt leverage.
Again, TLRD still has to pay off a lot of debt and JosABank is basically worthless given the change in 'unsustainable' go to market pricing strategy. JosABank was doing just fine with the go to market pricing strategy. Why even buy them?
I don't think this is BK worthy, but I do believe there is significant risk and this stock is overvalued in the double digits.
LG cried foul and behaved like a 2 year-old when analyst said this was a $5 stock. Now CLF is pulling out the stops to avoid BK in 2018. Better renegotiate debt from 2018 to 2025 or later. Even then not looking great. So now shareholders would be happy to have $5.