Won't happen. That mistake (one-time dividend) last year is still haunting the balance sheet and the stock price. It was a popular thing to do last year to beat the new dividend tax laws. But the company could really use that cash to weather the coming Obamacare Depression.
Why pay $250M for a business with a 60% tax rate and just $1M in profits? Doesn't seem like a very good return on one's money imo.
I went backand read the 2011 transcript. It was all chearleading and talk of
"growth" back then too. But that didn't make it a reality. Talk is cheap. CEO's are typically cheerleaders on conference calls.
great post btw
"The tax rate for the third quarter of 2013 was 47% compared to 152% in the prior year quarter. The high income tax rate is primarily a result of the fluctuation of earnings in various jurisdictions and losses incurred in the US and certain foreign jurisdictions for which no tax benefits have been recorded. The Company expects its effective tax rate for 2013 to be approximately 60% resulting from the current mix of business by tax jurisdiction."
That's how they get people to buy hat they are dumping. Geez!
Pump and dump for his hedgefund buddies obviously. It went to around $35 and has now lost nearly 65%. If it goes to $8 and Cramer starts bashing it, I might buy in.
That one-time is one of the biggest wastes of cash that I have ever witnessed. First, because they have shone no ability to build the cash back up. In fact, it continues to decrease. And second, The stock has decline far more than the cash payout, so shareholders LOST money on the deal. Only traders who dumped on the pump and those who went short at that time made money. Of course the insiders who receive a big salary AND gave themselves that dividend made out (with company cash that is). Poor management in my book. That's a shame because I once thought they had better management than ANF and the others. They proved me wrong.
Last week, Aeropostale (ARO) adopted a "poison pill," or takeover defense measure, as it considers its options, the company said.
I think we need to see this much lower for new investors to see any potential gains.
Operating income decreased 52% to $61 million, resulting in a rate of
7.1% compared to 14.1% last year.
-- Adjusted EPS of $0.19 compared to EPS from continuing operations of $0.41
last year, a 54% decline.
Cash and Investments
The company ended the quarter with total cash and investments of $367 million compared to $545 million last year.
I knew it was trouble when I saw ANF had their jeans marked down to $39 from $88+. AEO had to at least match that $39, which was a big haircut at the mall I scoped out.
I smell a rat, with big ears and reading a teleprompter.
And what about the powerlines and such that these drones will be hitting.
What a ridiculous concept being used for publicity as the stock price is well into shorting territory.
We call that drone, Jim Cramer.
He was delivering the 'ol Pump-N-Dump!
Come on man. I saw their distrubution center on Bloomberg a few minutes ago and there has hardly any packages moving on the conveyor belts.