They had $10.6 million in cash at 6/30 and said on the call liquidity had improved since then. Major reason for the Q2 working capital usage was gearing up for all the new proprietary services contracts - should not repeat in Q3 and Q4. They have undoubtedly been collecting on receivables and one major factor rarely if ever mentioned is the large ownership position of Kelso - top tier private equity firm that will do what is necessary to arrange bridge financing or some other stopgap measure if needed. The "market" recently has been tiny volume - if there was real concern there would be heavy volume selling. These guys are straight shooters and I believe them when they say they will both refi the revolver plus pay down the $30-40 million in Q4. That's a historically strong quarter for late sales and if they can even duplicate Q2 they can pay down $20 million on the revolver. I bought more today - price drop is just another fishing trip by the MM's scooping up stop losses. PR's are not the strong suit of the company but I think White is making the right moves.
Pretty good call, dude. Up 19% since you posted this message. In 4 days your call beat the Dow, S & P 500, and Nasdaq returns for the entire year. Good thing there is no such thing as Market Maker manipulation, only the clean law of supply and demand! Anyway, nice call.
Duh, I am sufistikated enuff to see the stock keeps going UP no matter how many negative messages idots posting. LOL yorslef, I am litraly lafng all the way to the bank. Keep the desastir messages coming please - they are making me bery big $$.
GGS has never missed a payment, has never violated a covenant, has always had ample cash flow to service all debt. They will without a doubt refinance this upcoming revolver maturity and they will deploy all Q4 cash flow toward reducing the revolver. This could be in the range of $30-50 million depending on late sale volume and is half the outstanding bank debt. The vast majority of the debt is their own $250 million senior notes which are not due until 2017 and they can easily fund that out of cash flow if they manage it properly. Call it junk if you like but I have seen nothing whatsoever to worry me. I also would love to see some proof of the S & P CCC+ rating since there is no press release anywhere about this supposed rating which appears to be a figment of deluded imaginations. I am too busy counting up the profits I have already tallied on GGS to pay much more attention to the dolts on this message board. Nobody ever bothers to post hard numbers but they can sure spit out innuendos and non-truths.
Who does this brilliant market guru think he is instantly buying FROM or selling TO? The market makers of course. EVERY share of stock ever traded goes through the market maker system - you are NOT buying shares from Joe Smith in New Jersey. You are buying from whatever market maker is making the transaction at the time and it is at THEIR price. He also seems to think highly of SP (I'm sure he means S & P - I have no idea who SP might be). These are the very same geniuses who slapped AAA ratings on the most worthless investments ever created and lost investors billions of dollars. I'd trust my baby sister's opinion before those guys. As my departed pappy used to say "You can send a moron to school every day but he is still a moron". Gotta love Yahoo message boards - they are chock full of razor sharp wisdom and lots o' laffs.