Not very convincing on the rate case. Profits were pretty good in my opinion.
Maybe they oughta think about suspending the dividend if they want to convince the PSC they are in a liquidity crisis.
So Save A Lot had EBITDA of around $66 million last quarter. Annualize that and multiply by 8 or 9 (maybe even 10 at outside) and what do you get? Maybe $2.5 billion? Sure a great deal more than what was talked about when the Albertson's deal took place but maybe it is possible. Is that crazy?
Sure sounds crazy to me but that is the kind of number I'm thinking is conceivable based on the possible Grocery Outlet transaction. Just baffling. Obviously very speculative back-of-the-envelope sort of calculation. Wonder what SAL is carried at?
Folks might want to take a look at the Wall Street Journal and look for the article about Grocery Outlet Inc. I'm flabbergasted by the premium private equity is willing to pay in that deal. My guess is that this is good for Save A Lot but I suppose it is also conceivably bad if they expand in a big way.
A billion dollars for 200 stores? No way that makes sense unless you plan to significantly expand it.
That is true but be careful to not imply too much. I don't remember what was disclosed on the SEC investigation but what if someone threatened to break someone's legs (facetiously) or there was a small conspiracy of some kind. They would want to know what it was and then leave it open pending the criminal proceeding. Just some wild speculating on my part. What isn't wild speculation however is that contacting the U.S. Attorney's office is a bad idea.
You might be right but Ebix is in a much better position to make the call. If it is a minor issue then EBIX should simply disclose what is being investigated and that would remove all doubt.
No interest in a credentials argument and I readily concede the investigation is gathering dust. It is likely better to leave it that way.
The class action settlement did indicate something was wrong, just nothing terrible. If they did something mildly wrong it is better to let it slide rather than force the legal system to take action unless you are confident it is something like a small fine and things are concluded. Tend to doubt it would be a fine or a reprimand but that decision is best made by Ebix as you don't (or at least to my knowledge) don't know what is being investigated.
Could be that they have all the facts and are just evaluating what to do next. It is entirely possible that a criminal indictment for something could still happen. Obviously it won't be attempted murder or something that is obviously terrible but conspiracy or something like that could still happen and if it did happen and it isn't worth going to the trouble of filing due to other priorities letters might just provoke a response.
I wouldn't write them as it raises its profile.
You know I just realized something. There is the over-allotment option. If I knew I could get the shares and knew nothing about the company I'd consider shorting it at a pretty low value (maybe not $2.01 but close) and just delivering the shares when the over-allotment takes place.
Don't know that this is possible but it is another reason for the shares to be under pressure until the 30 days expire or the over-allotment is subscribed. I had hoped that it wouldn't be subscribed but the more I think about it the less likely I think that is as there is an arbitrage opportunity. Too bad.
In terms of IR firms there really aren't any ethical canons. They will work for outright criminals.
Accounting firms hold to higher standards but unless there are lying to the firm or clearly breaking the law the worst that can happen is a higher fee or a more intrusive audit.
That is largely true but one should never accept earnings at acquisition oriented companies without looking at cash generation along with cost of the acquisitions. Anyone with a billion dollars to spend can put together solid earnings growth, it is just a question of how sustainable those earnings are.
Hope not too but it is at slightly below book value. If it did go below $2, assuming there hasn't been negative news or a general crash in prices, I think it would get some serious buying from the value crowd.
Hear their network is better in certain places but where I live it has historically been complete garbage. I'm not sure my family would switch to them if the price was half of what Verizon charges simply out of safety concerns.
Might have to look into switching to T Mobile but Verizon sure is exceptional.
Sprint and Clearwire fought for years over many issues. In the end though Softbank wanted Sprint to buy Clearwire for the spectrum, as you indicated. The network however is being shut down and is only in place to avoid cutting off current customers.
Maybe Sprint was totally thrilled with the performance of the Dragonwave equipment in the network being shut, I have no idea but it is extremely hard to buy the argument that Sprint and Dragonwave have a special relationship of some kind.
Wouldn't count on Softbank's backing them unless by that you mean issuing more shares. Besides, isn't Sprint abandoning the network that DRWI was a part of due to its economic failure?
It's an interesting question. I tend to not place all that much worth in relationships with equipment vendors provided they have a proven ability to deliver. On that count I have a hard time saying anything other than the Clearwire roll-out was a disaster. Probably wasn't Dragonwave's products that caused the problems but I wouldn't necessarily count it as a positive either as Sprint is shutting down that network. Also, who knows, maybe Iliad (sp) will acquire T-Mobile and approach things differently too.
All a big muddle. I basically have no idea how things will shake out but am willing to bet that CRNT out-performs their competitors. Whether that will be enough to make real money I don't know.