Perhaps you might want to tell CONN shareholders about backing out bad debt provisons from earnings. They will be happy to hear about that. With $10 mln in bad debt provision flowing through the income statement in 2014 (up 5x) this can't be backed out.
Tax benefit was $0.45 this time as mentioned in the press release - so your Q4 number is of course wrong.
Given the concerning eps trend due to poor reimbursement rates it would be outright dumb to expect a flattish yoy eps in FY2015. Actually it might still be optimistic to annualize the Q4 eps number but this would leave us with an FY15 eps expectation of below $0.70, down 40% from FY14 and most likely somewhat lower revenues.
With reimbursement challenges seemingly only getting worse the stock doesn't look cheap at all at current prices.
I guess it is quite easy...they will take down FY14 guidance due to ongoing yield problems - given that the watch will hit shelves in 2015 there's no chance 2014 revenues will reach their stated goals. And on the call they will give an highly optimistic outlook for 2015 mainly to contain further damage to the stock price. The last time this company reached its own goals was some years ago.
Revenues of $17.1 mln were more or less stable but eps took another hit - down 35% qoq - not exactly the right set-up for another momentum event tomorrow.
The trend does not look very encouraging to say the least:
and SPRD was acquired at a large premium... while I don't like the company it is highly unlikely that they have acted as fraudulent as Sino Forest or NQ Mobile (with the latter still trading at $6). They might have fabricated some revenue, round tripped cash and payed too much for poor performing acquisitions (in most cases to give money to close friends and relatives) but their core business looks pretty legitimate.
They were absolutely spot on on GOMO just recently so this should give them lots of credits. Clearly they do quite a bit of homework instead of making unfounded allegiations. Thre report on VNET has far more quality than most of the Muddy Waters has issued so far.
I don't see how a heavily cash flow negative company like VNET should do a buyback of this size. It doesn't make any sense at all.
nonsense - fact is that the company's earnings have substantially weakened quarter over quarter despite ongoing high coffee prices. Gross margins came down 400 basis points or a whopping 25% in JUST ONE quarter. The small buyback even added to reported eps - without the buyback the number would have been even weaker. The company again demonstrated that there is no way for them to show a consistent or even growing earnings profile and that they are unable to extract higher profits even with a favorable market setup. Add the millions of shares insiders are selling into the market every year (after getting them for free) and you have a company run solely as an management ATM.
The shares should be avoided at any cost as the real value of the company is somewhere south of the reported book value which calculates to 50-70% downside from here.
already down 60 Cents from short entry a few minutes ago - should easily fall through day lows in the afternoon. Still looking for $12 close.
hard to find shares to borrow - short 15k at $17 now
They were spot on GOMO and they put out a pretty detailed report on VNET which has months of field work in it so they clearly have some valid points here.
In fact many more tough questions than on the infamous NQ call some months ago - would expect investors to abandon the shares as there are just too many questions raised by this very detailed report.