67000 on the ask, selling.
Interesting, yesterday I pulled all my limit buys and literally seconds later stock went whoosh....
Yes, I listened as well. They were all chatty for sure. Look, any capitalization that allows an owner voting control without owning majority of shares is priced as such when it doesnt perform. This isnt Google. Why should Ed give this up without a reason. Of course, his "show me a study" comments regarding this is almost childish.
The biggest thing I took out of the call was that he thought they were close on an acquisition that would possibly add 50 million in revenue, it is a complicated transaction and of course it might not happen in our lifetime if at all.
Its cheap, no doubt. I think if you buy here and are patient no trouble. But it will probably take a while. Sentiment is poor. Would help if they bought some more stock at these levels and dividend comes up next month.
Performance wise, terrible. But there just comes a time when you have to hold your nose and buy and its now. Can it go lower? Of course, wont surprise me if the market makers shake 10.
Most companies have a LOC to cover things like letters of credit when you are doing business around the world.
My back of the envelope thinking is this. They receive the additional dumping funds and use that to pay for the charges to get out of the Young America's business. So maybe cash doesn't take much more of a hit although it may go lower first, depending on how it is paid out.
Can they sell the Young America's line? Don't know. Can they sell some of the assets at Robbinsville? Sure, there has to be something there although like buying a new car, they sure took a loss in value on the recent money spent including IT and labor to install and streamline.
They have a state of the art showroom. The question now seems to be is the adult line really profitable and is it profitable enough to support the marketing and overhead.
If it was this simple to get profitable then as one of the other posters said why the hell did they invest all the time and money in Young America? Hubris? Because they had the money? Likely both. A group think that once it was like 2007 again things would rock? Except it isn't and might not be ever again.
Once they divest everything it would seem there are two options. Sell the remaining line or buy another one.
Plenty of cash for now and a profitable adult line. Still, how this is configured going forward was kind of left hanging in the wind wasn't it? They only had a full year to prepare a contingency plan but that requires forward thinking doesn't it?
Its pretty obvious they were pushed on this during the last CC and with the shareholder meeting I guess they finally decided it was time to act.
However, the Company
has suffered losses and negative cash flows from operations that raise
substantial doubt about our ability to continue as a going concern.
The "dividend" was nothing but the largest holders taking money off the table. Offering price low that I see is 5.75 on the chart. What is the forward EPS on this? I am not sure they have one now with first quarter more then likely flat or even worse if the comments from Macy today is an indication of how early spring is shaping up.
Interest expense is stupid for the business model but Sun and Gordman got some of their money back while someone is holding the debt. If it gets called Gordman and Sun are free and clear at least the dividend in hand while the business is sucking up a big pile of debt it surely didn't need.
Gordman stepping down. Probably planned when they did the dividend (at least by him). Still the guidance is terrible. Best quarter for them is now flat but more importantly look at the inventory build. Now the company is loaded with debt.
When Gordman is leaving you have to think you don't want to be holding the door open for him....
The stock is/has been penalized for the Margaritaville transaction. Without it, they would be doing pretty well. With it, they wasted what amounts to a year. The stock price reflects this. Management is changing tack and took "credit" for it on the call when Sidoti asked if this was the plan (to convert to Fuddruckers). It wasn't the plan but it was the fallback plan-just wished they would have owned up to that a little more clearly.
Still, I think now its time to accumulate.
The question is if they had cash and no debt why did they just raise expensive financing? Because the first quarter loss is projected to be horrendous (and not just for the Seal). I don't know of any teen retailers or female mall apparel stores that didn't take down numbers.
I think they were smart to raise equity because if they aren't sure when this is going to turn then they will lose almost all of their cash currently on the balance sheet (not including the new financing). They did slow down capital spending. Smart. They cooed about online but everyone else is doing the same thing.
Look, here is what I think. None of these guys know how this is playing out. The Starbucks CEO stated the obvious, they aren't seeing as many mall shoppers. Neither are these stores. The market is forgiving at the moment, even allowing companies to raise capital for situations that don't really deserve it. Delia's just raised two tranches of money in less then six months and I still cant understand why since they have NEVER made money and the base of stores is contracting. CWTR wont go away but it needs to. Body Central just went into an implosion in less then a year. ARO is projecting a .75 per share loss first quarter. Look, its not one chain that screwed up. CACH will report next week and it should be another big screwup although they have been getting a pass so far.
What I don't understand is why some of these companies don't combine. DLIA, WTSL and CWTR or some combo that leverages store space, internet, management. The model for these smaller stores is going to have to change or these stores just need to go away and the strong(er) survive.
They have smart phones, tablets for apps and games. Something is getting bought instead of something else.
The Seal joins flameouts BODY, ARO, CWTR, DLIA in raising money and turning in horrid YEARS. Look at the Seals cash balance at last year end and this year end!!!! First quarter expectations are horrible to say the least.
However, to say less mall shopping is all of it doesn't wash. Online sales for all companies arent replacing the lost sales. The simple answer is technology spending is replacing apparel spending and that trend is not changing short term if ever. Some of these retailers need to be thinned out so the others can survive. Starting with the above flameouts is probably a good place to start.
The only thing I can think of is if they cant convert the chain itself into a winner they appear ready to convert the sites to Fuddruckers extracting some value.