still short from $8.50 pre-market entry yesterday - looking for $6 this week
Great they waited until their stock has become almost worthless to do a mostly stock based deal. Looking at the CEO pictures the Nexage CEO can now refocus on heavy drinking obviously. Nexage is a shame of a company which has mostly worthless inventory in its exchange according to adexchanger.
Analysts not impressed at all on the conference call with some questions about the cash cushion arising. "24 months" was managements' answer. So we are looking for CH11 at the end of 2016 at the very latest.
No. Read again. And read the press release. The $13 mln impairment charge relates to the recently reported Q4. The 5%-10% EBITDA growth is management's guidance for FY15 compared to FY14
The earnings miss for the quarter was just due to an $13 mln impairment charge for a small fashion brand - without that results would have come in at the high end of expectations. EPS Guidance for FY15 came in far below current expectations though but this is mainly a function of elevated capex and depreciation levels due to investments made to transform the company into an omnichannel retailer. The projected tax rate for FY15 is also 500 basis points higher than in 2014.
In fact the company guided for 5-10% EBITDA growth in FY15 and capex levels to come down significantly over time to below $300 mln annually in FY17.
Would expect the shares to recoup most of today's losses tomorrow.
given the fact that their balance sheet will be substantially overleveraged with $1.5 billion in debt (compared to just $400 mln for TTMI alone) I doubt that the deal can show accretion as the additional debt payments will be higher than the small synergies of the deal.
analysts quite upset about this topic on the call - would expect the deal to be called off ultimately if the share loses double digits today which looks pretty much in the cards here.
already unchanged here 7 minutes into the session - giant gain from pre-market short - another great call
would short the VIAS shares as given substantial antitrust issues I don't think this deal to go through
Yes - I already shorted a substantial amount of shares once the stock fell through $20 and shorted even more when I heard management's comments on the presentation - originally I planned to switch into a long position at $15 but given the current demand and accompanying margin issues the upcoming earnings report will almost for sure be a brutal disappointment. I think there's downside to the $10 level here.
unfortunately the company stated last week that margins were down substantially due to reduced product demand starting in August and hasn't changed since then
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