Yeah, I know. I was just hoping for one little happy surprise on MCZ. They are taking the 'right' actions, from an operations perspective, but if they don't start selling more stuff soon, there's no way out.
I am definitely glad that they're reducing their recurring costs and I'm sure it hasn't been easy for employees at MCZ.
Ultimately., they need to sell a lot more stuff to ever turn a profit; $50M / yr at 20% margin (which is probably about the 'real' margin is if you pull out the RB4 fire-sale) just ain't gonna make any money for anyone (other than executive salaries).
My impression is that there isn't much more room to reduce expenses for now, so I'd posit that MCZ needs generate $20M in gross profit / yr to break even, which means around $90M / yr in revs. Based on Q1, they're headed for something like $60 - $70M, so there's really gotta be some change, or won't be around to see another fiscal year after FY17,
I'm not feeling particularly comfortable at the moment, although there's really no material change since yesterday.
I had low expectations, so was hoping for little bit of happy surprise. No luck; slightly worse than I thought it would be. Wait until next quarter!
Hey Joey. I'm still out here, and no change to my mcz position. Just been too busy to do much research and so haven't posted much. Keep the faith - hopefully a decent call today
Remember that share count for trades is essentially 2X the actual shares which traded hands; only 3.5M+ SHARES were moved today, and a fair amount was not apparently 'big-block'.
I think they just added about 3M to share count, which would be consistent with past behavior. I'll let you know for sure on 11/5 or so
I don't believe there's necessarily anything they need to file. The shelf / ATM is covered by existing filings, so only thing would be an insider or over-5% disclosure by a buyer.
No need for any one entity to get 51%. All they need is a solid bloc of like-minded shareholders to vote to sell to an outside investor
Surely smells like ATM to me, esp given dste. Think they are putting shares into the market for a 'friendly' buyer to pick up and build position for cheap. Otherwise, 7M shares traded would have blown the price up .05 or more.
Hope it's an inst buyer, and not my paranoid "backdoor takeover" scenario coming true.