Also, you have analyze this company's equity from the perspective enterprise value and include the preferred shares, which do not add credence to your assessed value of common equity.
BS. this is a value trap at this point with severe liquidity issues and poor management. this stock, at this point, is a call option on their ability to recapitalize through an equity offering with the stated equity in the legacy assets as the incentive to invest. At this point, we need a private placement to IRSA for capital stock or preferred shares for circa $30mln for HOTEL ACQUISITIONS. Paying down 6% debt won't get this company back on track; we need assets yield 9-10% and the debt to be refinanced on their existing assets. If the CEO can produce this then either the preferred dividends get cut, which would only postpone insolvency for a short while.
I'm 29 and just bought $174 in some clearance and non-clearance items from their website. After opening a browser for JCP, Kohls, Macys, and Gap, it was clear JCP was significantly less. My expectations were to only buy a few shirts, but the sales were such that I found myself goaded into loading up on other items. Now, my wife will still not shop there as the clothing is unattractive (in her opinion and mine). Anyways, my story is just a testament to their rapid increase in online sales, which may or may not prove to mean much for this company, in the end.
You're right that JCP won't elicit much entusiasm from people in their mid twenties, but their sales are compelling for middle class America, and once people notice, it may surprise people how quickly they can buy their customers back via discounts.
Interesting read. I tend not to put much credence in any sort of forecast beyond 6 months as too many external forces play a role, but it is hard to refute something said by an executive of EOG. Also, to an extent that may have already been priced into the stock. Obviously another leg down in ng prices has not been priced in, which would be devastating for this stock.
The decline in the stock has been swifter than the decline in NQ mobile, the alledged ponzi scheme. you can measure that over the course of 5 days, a month, 3 months, and/or 6 months. just food for thought.
I think the volume is undeniable; some large institution is dumping at whatever comes available. Also, every CEO of any company is always forecasting growth and future opportunity; I forecast for a living and can say that it is an innate feature of the human psyche to be optimistic of what's to come. Also, it's possible that not all of these investors agree with one another concerning the future of the company (whether to take XCO private or continue for a turnaround in nat gas). The price action may not be an indication of what went wrong this quarter, but a rupture between the strategic plans of XCO for the future between these large institutions, who are the ones that control the board and can rally for change.
Also, for a stock to have a lousy quarter, this certainly seemed overblown by the sell off today, or did I miss something? I read the transcripts (I'm not an "oil guy"), but I couldn't discern any tectonic plates shifting beneath their feet that aren't impacting everyone in the gas industry, presently.
I don't particularly listen to this guy, which doesn't mean he's bad, but Josh Brown is about the only credible figure on that show, IMO. However, I tend to agree with his thesis pertaining to the stock, and believe this is a more likely candidate to get taken out by a major than have this elitist roster of investors sit on a dead money investment.
Long via puts