Yep. Chapter 11 and a 363 sale.... Colt is barely worth the assumption of senior debt. Let the friggin union go to helll. Who would let the uaw into a gun company?
Good writing... Simply put, more debt to buy stock will offset value gained in eps/pps. I think swhc should be patient with stock buybacks, i do not envision a scenario, i used the word, where swhc will be able to buy back shares very cheap. At this point, and at lower prices, they are competing with the shorts to buy shares.
The shorts are in sort of a lockup right now, if they aggressively buy back they will increase pps. I am sure they are waiting on some catalyst for pps degradation, but they willl all be fighting for those shares as well.
Number 2: a buyback authorization is not in place at the moment,
And number c: swhc may have other plans for their borrowing ability, and have no intention of further buybacks.
Item Zb: look at the statement of equity, the options and share awards are not like the past. Not at all.
Restated financials out today. Lost $20,000,000 year to date (6 mo). Sales down big. They borrowed money to pay for operational loss and their cash is down to nil. Inventory up $8,0000,000 from fye and now at $76,000,000. Looks like they are planning on a war or something with all that inventory! Anyone know what their debt is selling at? Colt would not be a bad asset for swhc to pick up.
Ya sure. You probably have ten aliases. And boo hoo, you probably put your money in well after the fat lady sang. Why dont you just trade this for a while?
Wow, are you ever a Debbie Downer. Colt won't have a problem with its inventory. The world is at war and running out of Soviet era AK 47s. Joe stalin made three for every citizen and there were other soviet bloc countries that made them as well. But alas, the incessant African and middle eastern conflicts have the supply of AK 47s and 74s very thin. Not to mention all those liberal gun buyback programs.
COLT will have a problem as low volume will leave their manufacturing costs go largely unabsorbed. All in all, COLT might be the next bowling pin to topple and be acquired by a stronger company like RGR or SWHC. I remain puzzled about SWHCs bif credit facility and what it will 'accordian' for.
Extension of Time to Deliver Certain Monthly Financial Statements. Notwithstanding anything contained in Section 5.1 or Schedule 5.1(a) of the Credit Agreement to the contrary, Agent and Required Lenders agrees that Borrowers and Guarantors may deliver the monthly financial statements, reports and other items required pursuant to Section 5.1 and Schedule 5.1(a) of the Credit Agreement in respect of the month and fiscal quarter ended June 30, 2014 on or before September 15, 2014.
this should be interesting
All of the allowed shares are bought up. I think debney is not willing to sustain an unsustainable price, so perhapjs is waiting foer the price to stabilize, lower before he effectively starts bidding against himself with another, pre mature, buyback ....
Great product, great stock. Look forward, ot needs some adjustment because you sissies squealed when swhc could not duplicate sandy hook. Swhc still has a growth rate better than the market, taking share..undervalued with MCAP/EBITDA of about 3x, PE of 7....
TAKEOUT BAIT.... THE LBO FORMULAR WORKS ON THIS ONE!
YEs - a llttle conflict is GREAT. It sees the new guy with the new ideas edged out the old guy. Maybe the old guy thought he was going to get the job and he was miffed - then took the first bus out of town, and took his ball with him!
Buybacks are over, dude. They might kick back in, but the board has not made provision to buy back more shares. It will be interesting to see what the company does with the recently obtained credit facility.
I am buying more guns, as i collect things that are interesting to me.
I have about ten guns, no Teslas.
I guess its like this: you buy one tesla and never another. Tesla pps slumps.
I bought an mp 9 c and i want another ruger.
I don't want any teslas.
I do not think that any sane buyer would pay more than say$15 per share for swhc. So i do not think there were any missed windows,,,, yet. Perhaps 3-4 years ago they probably rejected some suitors, rightly so in retrospect. Look at all the great things that happened to swhc and shareholders in two years.
The whole m&a concept is becoming more realistic now that target companies have their heads out of the clouds, and some, like rgr and swhc did very well for themselves during the gun run. Given where swhc is at now, its an lbo target, and a platform for an acquirer to roll up a few more assets...atk sporting???
Swhc may also get the opportunity to bid on another company, say colt. If swhc makes such an acquisition, i do not think they will be a target for acquisition themselves. I will admit that swhc is at a pivot point here...
See the sec website. K's and Q's are there. And boy what a mess ..... Debt is higher than rgr and swhc combined and their ebitda is in the toilet. There is no practical way to pay off their debt, even if the company was sold outright. Its a union shop too, so if someone wants the assets they better flush the union in a chapter 11' the lenders might get out whole if the company reduces inventory and applies proceeds to debt...
Some thing to thimk about:
€their lenders are high price transitional type lenders,
£their covenants are of the type given in distressed situations,
¥their interest rate is higher than the Golden days of Swhc
€their funded debt to ebitda ratio is embarassing and probably running at over 12x forward ebitda. Not great news for a company that can only sell at 6-8x ebitda (witness swhc and rgr)
$their inventory levels are very high. Whats up wit dat?
$despite the crazy dayz post sandy hook, colts sales, margin, profit, were lackluster. Now we enter the slump and where does that leave colt.
Splunk. Is colt swirling in the toilet?