Obviously, Costco is up-scale mass market compared to specialty market at a health food store or nutrition supplement store.
What is the price at Costco?
Is it identical to the cost elsewhere?
Costco is famous for a business model in which they claim to mark up the price only 10% over what they pay for it.
They make the bulk of their profits from charging a membership fee.
So, the definitive proxy has been filed.
I have not read the document but I am presuming that:
1) CFIUS approval was received
2) The date of the vote is 12 November (Source: Krebs Cycle Post here on Yahoo)
This means several things:
a) The deal will close by November 15th if shareholders approve.
This is because the deal is required to close within two days of the vote.
b) The company will NOT release any additional financial information (i.e. there
will be no Q4 earnings report prior to deal closing).
The only possible problem that can develop at this point is if:
1) Shareholders vote the deal down
2) The Chinese economy compleely implodes.
We traded at $359.10, putting us just under the 200-day moving average for the first time since early May when we were trading around $325/share.
Meanwhile, the current bid/ask spread is an obscene $359.99 bid, offered at $395.12.
That's outrageous. No wonder we have 127* shares per day traded.
Bloomberg isn't married, though he is divorced.
Like NY Governor Cuomo (also divorced), he consorts with a woman but doesn't marry them.
Also, keep in mind, when a new CEO comes in, he came in because he saw substantial value and opportunity.
Thus, he is not unhappy at seeing the stock pull back if it means his upcoming option grant will be priced at the lower level.
Finally, maybe he should have compared this price action to the action in other REITs.
Who is Mr. Ton?
Cashmonies_69's post was juvenile and pointless and offered nothing of value. His handle is equally juvenile.
The opinion it contained was expressed in a way that should have been shared with Jack Daniels, not this message board.
A person who doesn't realize that a CEO does not control the price of a stock in the short term is a financial danger to himself and his family.
What are you talking about?
Did you even read the document?
The discussed a transaction extensively with several other companies and it was presented to nearly 15 companies in total. 14 of whom showed no interest.
The meaning of your statement:
"did not single out a company to give management a better "inside" deal?"
is completely unclear since when reading it, it doesn't make any sense.
The fact is NO other company made an offer for the whole company.
And, no, we would NOT have heard about it.....until now. That's not the way it works.
Given the profitability that has been demonstrated in the past, and looking at a financial model where certain revenue growth levels and gross profit margins are assumed, it seems to me that the stock is a reasonable value here below $6.
But, i don;t see an immediate catalyst for it to move up, so I will wait before adding, looking to minimize the amount of time my capital is tied up and trying to get an even lower price than currently. Also, I will probably nibble over time, trying to pick spots and buy on days when either it or the market appear to be acting irrationally.
If their biggest problem is an inability to meet demand, why have they not been more successful in raising their pricing structure?