What do you mean, just filed? Isn't this 13D a month old? And no they aren't large and very well known...if they were they wouldn't be HQ in Orlando. But it is possible good news that will put Barry out of his misery sooner rather than later. Hopefully at a decent price north of $5/share.
M&T could want full repayment soon, considering they gave ultra-cheap financing to BARRY and he squandered it. You might be right about that. I always thought M&T were a bunch of fools for giving such cheap financing. Now that IEC has violated more than one covenant, they may have had enough.
I think you are way off on your other comments. I think everyone has likely had enough. One large customer loss or delay is a serious issue. That's why this needs to be integrated into a larger player. Can Barry really still wield influence on this board? If so, everyone else must be a bunch of derelicts.
The employment thing is one reason I think Barry might not pursue a sale, but I think the Newark plant would likely remain if the company is sold. Newark is cheap and there is a lot of training invested in those employees. Some of their perks might be gone though. Barry will likely be blacklisted in Newark if he sells out, but I think it needs to happen.
10 minutes of disclosures followed by barry nonsense and a few questions (I'm sure there were more in the Q). It got real awkward there. I seriously do not know how anyone can be bullish on the company at this point. If you value money I think you should look elsewhere.
Sentiment: Strong Sell
Gross profit margin was down again. If you can't make any money, sales don't mean a thing. How much longer are you longs going to sit in this stock while the broader market passes you by? This co is a piece of #$%$. Barry is an embarrassment at this point. Why is he still there?
This company is a complete mess, people. I don't know why anyone would still hold this stock. Profitability is horrible, debt was up again last quarter. Increased revenues don't mean anything if your margins keep going down. The SEC changed its investigation from informal to formal in the restatement fiasco. SCB was a huge mistake and falls on Barry's shoulders. I see his employment contract was modified...I hope that means they will kick him to the curb ASAP. This company needs a major reboot. Barry is like a cancer at this point. He's gotta go. The wheels have fallen off.
Sentiment: Strong Sell
Oh yes. The equity will be worth $1.7B at that point with no material change in operations...LOLOLOL. You forget that if the crop sucks and the river levels are down this company sucks wind BIGTIME...it happens every few years.
I think that within the next 12 months or so LEE should be able to refi the 2nd lien into a new 1st lien. They will have repaid the equivalent of the 2nd lien off by then. It is still a story of deleveraging. LEE is certainly doing better than most newspapers in terms of maintaining free cash flow. I agree that a move above $3 probably won't happen for a while, but continued deleveraging can only make the story look better. I suspect the stock could climb above $3 w/in the next year if the same multiple (EV/EBITDA) is put on the stock. It certainly isn't as cheap as it once was, that's for sure!
No you are correct, these longs don't remember the facts. This is too risky for me either way. Tomorrow will likely make some people a lot of money and lose some people a lot of money.
Maybe old Warren is going to buy it for $3/share and is accumulating as many shares as he can below that price. lolz...who knows...just speculating because speculating is fun!!!
Even a broken clock is right 2x a day.
Cramer is a fraud. He had been pumping this co $LINE before the SEC decided to investigate it and the stock tanked. Now he has been completely silent on it. That should tell you everything you need to know about him. Do you really think he knows enough about all these companies he talks about? No he doesn't. Ignore Jim Cramer. Only a know nothing retail investor would get sucked into his nonsense.
What about buying by someone that sees real LT value? I do think momentum traders are involved as well though. Who knows! Time will tell!
If it is Buffett, he needs to buy the company before August 15th then the 13G comes out. Because if he is accumulating shares the stock will soar and he won't get it for the price he wants...just speculation. I'd rather no one buys it anytime soon.