What's up, Retayl. BBY has no national, brick and mortar competitors and a higher margin product. Not comparable.
Shorted a few days ago at $9.20. You had your big burst yet I'm in the money? Hmmmmmm. Wonder how many of you are holding hedge fund sold shares after they profited on the bounce off the bottom....
Here's a few:
1. The company lost $458 million last qtr after CEO said it was stabilizing last qtr.
2. Vendors don't hesitate to pull credit. Forced the company to raise capital in September and will do it again, very soon.
3. Company lost 30% of revenue last year and despite the current strategy being in place for seven months, have not been able to gain even one percent of the 30 percent, back.
Company increase in sales is due to selling extremely discounted merchandise at a loss. Zero sign anyone would buy much of anything at full price, yet that's what the long case is counting on. Not going to happen.
Sears posts horrible numbers yet goes up. Why? Mr. Market is banking on brighter days ahead when JCP is shuttered.
The only reason why they have anything positive at all is because they are selling clothing at a loss...just look at the numbers. That's the strategy, get the customer in the store by practically GIVING merchandise away , then next year, ask the same customer to start paying full or near full price...
meanwhile, after rasing over $3billion last year, they have just 41.3 billion left. Same thing that happened in August and September is going to happen in January and February. The vendors are going to demand higher cash reserves and they're out of bullets to raise any more.
We've turned "A" corner. Not "The" corner. Big difference. They've burned 43 billion this year. A significant reversal would need to happen to change the trajectory. Unfortunately, what we have here, seven months into the new strategy, is a teeny, tiny uptick. Too little, too late.
Even if they improve by 50%, something there is absolutely no indication of, they still lose $1.5 billion next year. Party is over. Market will you use the time to torture shorts but eventually the money will run out.
My entry is $9.20 so this hasn't even begun to sting yet and it's WAY up off it's bottom of $6.17. I just don;'t think they have the ammo to shake me. We'll see.
Big Picture? They have the old overhead, essentially and the new reality of $10-$12 billion of revenue. They have been at this strategy for seven months and nothing close to the seismic shift they need, has occurred.
You can't go on losing $100's of million a quarter. They will close stores in the new year and in doing so, kiss goodbye another 30% of existing revenue putting them at $7-$8 billion...so no chance the price goes up from here. The company will be shrinking, not expanding.
This is a squeeze. We'll see if the market is bold enough to push this into the low teens. With the dilution, that would be a plus $20 share price before dilution. They have lost well over 2 billion since the last time it was above $20...just don't see it happening.
It will torture longs for a week or so, possibly going above $10 but that's it.
JCP has no control over costs. Still has overhead based on old revenues of $18 billion a year. When you lose $489 million this quarter, $550 million last quarter, they're lucky to have a $2 billion market cap. They're losing money everday they open their doors...millions.
You do realize after the 30% dilution, this IS trading in the mid teens, don't you?
That's all you got. There is no argument for the long side. It's a squeeze, it will end, this will fall. They lose $5 million opening there doors everyday.
You do realize they diluted this company by 30% to raise $800 million and then went out and lost $489 million, don't you?
We'll see who the chump is when this is all said and done. My advice, take your profits.
Least scared I've ever been holding vs a short squeeze. Zero indication the seismic shift this company needs to make up the 30% revenue it lost. Just more blabber about things improving after delivering news of another huge loss of money.
relax, Boys. We have a Wall Street Short Squeeze happening. Company lost $489 million. About $5 million for every day they open their doors. No progress made despite seven months of the same strategy they will use going forward. Higher prices just means more opportunity.
It took them 90 days to lose $489 million and you clowns are happy? Going to take a seismic shift to turn this money loser around and we sure didn't see any signs of it this quarter, again...despite management promise last quarter, that we would.
Yeah, ok. Short Squeeze. I'm a big boy, I can handle it. Just going to short more. The company has opened it's door for business everyday in the last two quarters. The net of doing that is a loss of over $1 billion. The decision is easy. The company loses millions everyday with no signs of the type of seismic shift required to change that.
This is what it is, a short squeeze. Rarely though, are the numbers so bad that you don't second guess your position. The higher it goes, the more I short. If the customer were coming back, we'd see evidence by now.
They lost 30% of their sales and seven months into to a heavy promotional strategy, they lose $489 million. Unreal.