nobody cares ( the street) when they lose from hedging or win from hedging. It is a non event. The good news is sales were up 19% and the Tea line was introduced as well as the contract with 275 Stop and Shop locations
The company earned 9 cents versus 6 cents, despite a $2 million loss in sales. The 50% improvement in profit was attributable to lower food and G&A costs. Luby's also paid down their revolving credit facility by $6.5 million and plans to sell $15 million of surplus real estate.
apparently you do not know too much about how proxy fights and takeovers occur. It is all about the next move and who will take it.
SG&A has nothing to do with margins. it is a totally separate calculation that ha no connection with the cost of goods sold. Didn't you take accounting 101 in College?
Is today's horrible hate selling the start of something even worse? Why the implosion? Could we fall through the $8 level? I wonder if it is time to try and catch a falling knife or if staying on the sidelines is more logical? In any event, One day the stock will bounce back, but that event could take years. Maybe if you can't beat em, join em. The opening of a short position is looking awfully tempting right about now. We will see, but at $5 a share, you probably can't go wrong as a buyer.
If management is successful in its new strategy of less commodity trading/bulk bean sales and more private brand sales, and keep costs in check in the process, the stock could stabilize and even trend higher. Who knows, we could even get to $5, if things really start to mesh.
There is a decent possibility the shares could close out the year with 20% appreciation and the recapturing of the $6 milestone mark. Stranger things have happened.
I'm afraid we won't get any meaty news until next month's earnings release. Until then, it will be slim pickens. These guys are in no hurry to show all their cards. It is simply a waiting game at this point. One day we will be well rewarded. patience is a virtue.
The latest Seeking Alpha article speculates that if Gamco is successful in getting all five board seats, it might put the company up for sale