8% growth in 4Q and guidance at 10% is a disaster. They are losing money so they will need a stock offering. At least they got that note money in december. The stock is heading to $9. What a mess. I am out!!!
lawsuits will be filed today. we have not seen the asset writeoffs that will drive down book value. They will need to leave unused pipe in the ground and writeoff $250MM of goodwill in addition to hard assets. Disaster.
They are just a middleman--they make nothing. The whole thing is driven by TV advertising. Good quarters when they do not spend so much like last Qtr and poor quarters when they see the slowdown and up advertising. No value added and CMS is watching these direct to consumer companies.