Remember how someone or a group of speculators placed that false story about Logitech acquiring Zagg? Logitech is incorporated in Switzerland (merely paper, no real operations) and they managed to get a story placed on an English language Swiss web site which was then picked up by one of the worst internet stock web site (Benzinga) which temporarily drove the share price up.
Who knows, maybe someday Logitech will buy-out Zagg but I doubt it will and anyone who attempts to start such a rumor should be taken with a grain of salt given the prior history of stock manipulation relating to that topic.
Thought he said it was mostly the original start-up employees. That might very well be a bad thing as they built the company but that activity tends to help establish one's authority even if it is unpleasant, repugnant and certainly hurts people who probably didn't do anything wrong other than point out mistakes that were being made by senior management.
hzo never meant anything. Why people mention it, is beyond me.
He fired people so he does appear to be taking some responsibility. Whether it was really their fault time will tell. He also is doing a good job of managing expenses as profitability is holding up. Share price is reasonable all things considered IMO.
No one on the BOD has resigned or been accused of unethical behavior lately. That is a step in the right direction.
Oh, if anyone is concerned about that aftermarket activity; don't. It was only 400 shares at $4.30. Might go to $4.30 tomorrow but I seriously doubt it.
Describe the scenario where the share price goes to $36.15
Some scenarios where it goes to zero include:
1) Class action lawsuit settlements that have not been insured and amount to several hundred million.
2) Criminality on part of management in hiding losses.
3) More losses or increases in reserves. Another $360 million puts shareholder equity at zero.
4) Holding company is starved for liquidity and can't obtain dividends from subs.
Sure there are others but that is all I can think of.
It wasn't long ago that if you had said $6 was possible you would have been laughed at. Buy the shares if you like but there is a chance you lose 100% of your position.
The veneer of control that they have tried and succeeded to portray has been torn away. Tend to agree that it will be impossible to turn around. Years of litigation and contraction stand in front of them.
Fact that Lee hasn't resigned or been pushed out probably indicates the failures were inadvertent and that there wasn't criminality involved. That is about the best thing that can be said at this time.
Believe they said the intangible assets are still under review. That involves getting lots of projections on future results which are really in a state of flux right now so it does take quite a bit of time. They probably aren't in a rush to get the project done either. I'm not defending the company, they lost control of their book of business and once that happens it takes years and significant resources to really get things under control.
The banks have tentative financials. They probably just wrote all the intangible assets off for purposes of those reports.
The buyback plus the Chinese strength. As to the share price tomorrow, I have no idea except to say that I wouldn't be a buyer unless the price declines. There is the risk they re-price to something along the lines of Skeechers unless the company really supports the shares.
That is a big buy-back authorization. Roughly 20% of outstanding shares. Unfortunately, we won't get any indication of what they are looking for before buying.
If there is a good explanation of what is happening to America's wholesale it might be o.k. but the trends are pretty worrisome. Japan one would expect. Europe being this strong is good but it just isn't big enough to offset America.
Wonder if it might be South America that is driving a good chunk of the decline? They had the big Brazil thing last quarter. That might have been a fundamental change. Guess we will find out soon enough.
Retail actually looks pretty good across the world. I suppose U.S. is mediocre with Europe/Asia pretty much gangbusters, Europe especially.
Wholesale, not good at all outside of Asia (excl Japan). Wonder how they could manage to be down so much in the America's and Japan.
Internet pretty bad too but it is small.
Europe was exceptional across the board. Wonder if that says something about the European economy or if it is Crocs specific.
I think it is largely about momentum and the fact that they have ticked off analysts the last couple of quarters by not meeting guidance. The guidance is tough, many companies in their position sandbag and make no mistake it is difficult to project when you have international, retail and wholesale. I don't really care about missing the guidance too much. The momentum crowd, as much as I hate to say it, is important. A company that manages the news cycles and provides nothing but good news gets treated well by the momentum investors and the truth is that they really do drive a good chunk of the market. Here, it is really hard to place a positive spin on what is happening in Japan. That is structural and one cannot do a thing about it except wait for time so at least they can start reporting positive comps once again. Perhaps they should have spent more money on expansion in 2012 so they could have kept earnings down because right now they are showing significant deceleration in profits and their ROE is now merely o.k. rather than exceptional as it has been in the past.
Perhaps it is best to sell and buy back in six months when Japan has washed through. Problem with that approach is that things could turn in a big way elsewhere and you miss it.
That is kind of an obnoxious statement given how common the practice is. Still, after all these years one would think that better pay practices that incorporate pay based on performance would have emerged at a few firms. I've seen a few in the UK but none in the US. Doesn't mean they aren't out there, just that I have not seen them.
They did a "reverse acquisition" of Canopius Bermuda which theoretically increase equity and tangible book as there were new shares issued in exchange for assets.
I calculate as follows:
Equity at 3/31/13 - 1.2 billion
Goodwill - $270 million
Intangibles - $104 million
Reserve - $365 million
Net of $461
We don't know what sorts of liabilities exist for lawsuits that are inevitably going to be filed so who knows maybe it gets to $400 million or even much lower.
57.5 million shares outstanding leaves around $8 a share assuming $461 million is accurate. A discount should certainly be applied.