The CEO of CLUB (Patrick Walsh) runs a hedge fund (PW Partners) which owns over 3 million shares of CLUB, That would be a good place to start. That fund along with 2 other funds own nearly half of CLUB. If you are short right now, the real question is how to cover when only 14k shares are traded today and the price is still going up. Who is going to provide the shares to cover? I own 30k shares and see no reason at all to sell.
Word on the street is that CLUB is doubling down on their chicanery next week and also throwing in some shenanigans and wacky hijinks. Look for $4.30 by the end of the week.
Many mutual funds have covenants that they cannot buy/hold stocks under $3 which is one of the reasons CLUB tanked so much after going under that level. Could see more buyers once CLUB is back over $3.
The earnings estimate was from one analyst. Expense management is the big story with this report and why the stock will be up tomorrow. Why is someone going to sell a $3 stock when the company has just said it will be saving $1 per share annually in expenses? No worries.
I am o.k. with the new CMO. She is responsible for marketing which concerns building the brand and attracting new customers. I don't think a background in fashion is that far from health clubs which both deal with image. She also has a good background in social media which the COO is specifically looking to improve. It doesn't hurt that she went to Columbia and has a background in NYC.
I don't have a problem with that. Two young guys 38 and 39 years old running the company. The first order of business for the new COO is to cut the bloat from the $200 million payroll for a $58 million dollar company.
That's not who I thought it would be but somebody likes the selection based on the trading today.
Remember when Mike W, Mike L, and Mike S were there? And Moose and Poochie's uncle? Good times....
No. Bankruptcy is a result of not being able to pay your debts. With only 3 million in debt coming due in this quarter, they will have no problem paying their debt. I agree that they may have more difficulty acquiring new debt until they prove their new business model will work. However, that has nothing to do with going bankrupt. They really need to also attack their expense side. With $200 million in labor cost per year, a 10% cut in personnel will bring in $20 million.per year.
Why would bankruptcy be rapidly approaching? They have $3 million due as the current portion of long-term debt this quarter with $110 million in cash with good cash flow. Where does the bankruptcy come in?
TSI started 2014 with 311 million in debt and 73 million in cash. It now has 296 million in debt and 110 million in cash. Not sure anyone would think the company is going under. They do however need to cut about 10 to 15 % of their 200 million payroll.
Correction. Went from 93 million in cash last quarter to 110 million in cash this quarter. Generating cash is not a problem with this company
First of all, I have to admit my timing was bad and didn't realize it would drop to this level although it is mostly fear driving the price down. CLUB actually went from 97m in cash to 110m in cash over the last quarter without increasing long term debt. It has been increasing cash every quarter over the last year. Obviously, the company would not be spending 30m on capex this year if it was going bankrupt. It would use that money to pay debt obligations first. The fact that the company reports a loss does not mean it is losing money. It means it uses non-cash write offs so it doesn't have to pay taxes. Sorry, no chapter 11 here.
Pretty decent as far as I can tell. Especially impressive in the big jump in operating margin. For a company to be growing business as quickly as Spirit this is an anomaly considering the added expense to open new routes.
Sentiment: Strong Buy