a) management team
The new CEO has an excellent track record from her stints at huge apparel companies
The reported loss has little to do with the underlying cash flows as liquidity didn't really take such a big hit qoq.
I almost fully agree with your assessment but given the fact that they have still several quarters of liquidity available and that the company has strong backing form activist investors and a strong new management I am still willing to bet some money on next quarter's earnings release which just needs to show very little improvement to lift the stock big time. Sold 50k shares today for an almost 50% gain into the short lived run-up but still owning 450k shares for more to come.
no chance - this might settle at $10 again but I am willing to take on some risk once this moves to $15 - currently short
no - the stock is again very weak in a strong market on heavy volume - if the market weakens this will test the $15 mark. For now I am short the shares but I will switch into long once the $15 is reached
you should perhaps take some profits, too - at least now and then - the ethanol business is nothing for buy and hold investors
4 downgrades and stock down another dollar from after market lows - the shares should be avoided going forward. Covered at $13.
By enjoying the giant windfall profits of a great pricing environment even the mediocre management of the company was able to substantially delever the company's balance sheet and initiate some longer term profit enhancements. With input costs continue to be cheap and product pricing stable PEIX will seemingly enjoy continued strong earnings for at least two more quarters.
Many investors are suspecting that the recent sell-off was induced by some kind of bad news not yet known to the public but I highly doubt that as the parameters of the company's business haven't changed. I find it far more likely that some longer term large shareholders took some well deserved profits in the stock leading to some more selling pressure as momentum players are forced to liquidate positions. This might move even lower than $15 next week but I will only add to my position then.
The latest earnings were bad - really bad. The company continues to struggle with almost everything and there were no real improvements visible from an already very weak Q1. Gross margins dropped 4.1% qoq which is almost too bad to be true. Given the ongoing dismal performance of the company some investors obviously feared bankruptcy to become an short term option and sold out regardless of the price point.
And while bankruptcy might very well be in the cards at some time going forward the company isn't there yet. Delia has a few million dollars of cash on hand coupled with more than $8 mln in restricted cash (supporting letters of credit). And they still have $16 mln available under the Salus Capital credit line.
They also carry almost $30 million dollars of inventories on the balance sheet while bank debt and accounts payable stand at a combined $20 mln.
At current prices the market cap of the company is just around $20 mln which clearly is a "left for dead" valuation especially when considering that the company has NO current or even medium term liquidity issues given the balance sheet and the huge credit line availability. Furthermore I would doubt that the activist investors involved with the company would give up on Delia even after some more poor quarters.
Even more noticeable management guided for some improvement in Q3 on the call - and given the bombed out share price ANY kind of improvement in revenues or gross margins might trigger a huge rally in the shares.
Even with another ugly quarter the company is not at risk of immediate bankruptcy so I guess the shares shouldn't drop much further anyway.
Would expect the shares to recover most of their earnings related losses going into the Q3 earnings release in December.
conference call q&a nothing short but a disaster with analysts scratching their heads about the new strategic measures, the surprisingly weak business metrics and the slowing e-commerce growth. Despite the low share price I would expect downgrades and price target reductions across the board tomorrow.
only at 9,7% compared to 9% last quarter - based on these growth rates they will miss their 2015 and 2016 e-commerce revenue targets by a mile
nice one - idiot selling seemingly over - up 20% already - would expect the shares to recover well into the mid 30s within a few days
this is from briefingdotcom:
Commodities Trader: PEIX Long Position Update- out (17.52 -1.20)
I was stopped out of my scalp in PEIX for a loss of $0.60. I'm seeing illogical price action in this stock and don't like it. I was also stopped out of my PEIX long that was a swing, that I scaled into, for a loss. It rose to a HoD of $19.05 after the open, starting off nice, but since then the stock has falling over 8% on no news. I'm interested to see what color the sell-side might come out with following recent price action. Pacific Ethanol was initiated with an Outperform at Cowen and a $29 price target on Sept 12. I kind of feel cheated given recent stock action, especially considering it has some positive drivers. There must be some news out there that's not public yet. Given this, I'm out and staying out of this stock, maybe for good.
An Israeli financial news website on Wednesday reported that New York-based media and Internet company IAC/Interactive Corp has offered to buy Israel-based Perion Network, but a source with knowledge of the matter later said the report was untrue.
Israel's Calcalist, quoting unnamed market sources, said that IAC has offered more than $500 million for Perion, whose technology helps developers distribute apps and make money off them through advertising.
IAC had no official comment, and an official at Perion also said the company was not commenting on the report.
A source with knowledge of the matter, who spoke on condition of anonymity, later said the report was untrue.
mark my words: THERE IS NO OFFER and there won't be any - it just makes no sense for IACI to acquire a struggling company like PERI with a business model that has gone down the drain. They would expose themselves to shareholder lawsuits for an ill-fated transaction like this. After all they just need one look at the PERI / Conduit deal to see what would happen.
their price target is $30... read again
stock at pre-market lows - I gues it will test the $30 mark at the start of the session
there's no offer and there won't be any going forward - most likely the writer of the article is a close friend of the company's CEO who wanted to do something for the share price. I have been following Israeli companies for 15 years and in no case an Israeli publication was right when announcing a potential buyout first.
I was perfectly right about the company so far. And there's NO way an industry leader like IACI would even consider buying a company with a business model which has gone belly up.