Batraa - If Nick was a younger man, I'd say run the Company for another 20 years. But the guy is approaching 80 years old. We can't expect him to work forever and that is why he is trying to sell the Company. Time is not on his side. I'm sure he wants to retire and who could fault him for that? Is his son capable of taking over the reigns? I can't say for sure as I don't know what role he has played in the Company's success. I don't think Nick would be trying to sell the Company if he wanted his son to run it so that is enough for me. Trust me....I would not sell this stock as long as Nick is at the reigns and he is in good health.
That is your choice. APPL is a great company and very well respected company. Buying AAPL at today's prices will not allow you to retire early or achieve the wealth that a newly emerging small-cap company with a high growth rate will. National Beverage has also been transparent and treats its employees well. Unfortunately Nick Caporella won't live forever and I am certain he will sell the Company at a future point to be determined. He advocates shareholder-friendly policies. Thank you St. Nick.
You need to read the 10K. and proxy. It is no secret that this Company is seeking a strategic buyer. I have complete faith in Nick Caporella. This individual stock has garnered more gains than any stock I've owed over the past 20 years. It is a cash machine. He knows how to create value. This Company over its history has earned a return comparable to AAPL after you factor in dividends . How can any long-term shareholder not be happy with that result? I would caution you about shorting the stock. I won't argue that it appears to be pricey based on fundamentals alone, but if you are able to leverage a distribution network like Coke you can begin to see the strategic value of this Company. LaCroix is the #1 sparkling water brand by a long shot..... Look at what Coke's distribution network did for Monster....Strategic buyer = higher price. Nick is not going to accept any low ball offer. Time will tell.
That is funny about the dividend. Personally, I would rather that St. Nick (owns 75% of the Company) keeps the dividend so balance sheet remains very strong and gets us a nice offer as part of the "happy ending" he promised shareholders (and has already delivered for those that are long-term investors. I wish he'd run the Company for another 10 years, but at 79 you can't blame him for wanting to retire (he deserves it). This guy knows how to create value. Who will buyer be? Coca-Cola?
I would like to see LuAnn and Peter buy some stock....but they have not up to this point because personally I think they are not confident in their abilities (and I am not convinced either). Some positives from the CC was e-commerce sales were up 25.7%....that is pretty healthy, despite declining same store comps. Also, they will have spent over $1 million on shareholder activism ($300K per quarter)...I can't understand why private equity hasn't offered to take this one private yet....And no news! Hopefully that expense goes away. My buy sentiment is strictly based on valuation....you'd think this thing was going bankrupt based on Wall Street market value. I'd say it is serving buyers right now who want that perfect pitch. They have nearly $30 million in cash plus $30 million available on their line. They are cutting back cap ex significantly for 2016 so we should be cash flow positive next year. Company desperately needs new leadership and direction. Don't believe either LuAnn or Peter are capable of leading this company to new heights....I will give them credit that they are at least trying new things and hopefully business analysis, focus groups, and renewed marketing efforts resurrect this Company. Either way, they have lots of time before this thing goes under unless business takes a drastic turn for the worse....this quarter doesn't seem to indicate that direction IMO. Good luck all. Re-established a new position.
Yes, I meant Joel Waller (sorry) and also Macellum.
And let's divert our MPW cap ex budget toward a stock buy back NOW which would be a much better use of our funds. And, Mr. Peter M show us your belief in this company by buying 100,000 shares at the current price - be greedy when others are fearful.
Dear Ms. Luann Via and Mr. Peter M,
You have lost all credibility with the investment community and your business plan. It is time for CHANGE NOW and no more excuses. Here's my action plan - First, halt all capital expenditures related to MPW strategy where you are spending millions with zero or negative returns. Next, offer to take a 50% haircut on your salaries with no bonus for this horrible performance. Finally, let's take Marcellum's advice and bring Joe back as the consultant. If Ms. Via will not cooperate, she should be asked to resign and appoint Joe as our CEO. I suspect both of you knew during the last conference call that things were worsening and chose to say nothing. We are now sitting on very significant losses and you both need to accept responsibility for this situation and stop passing the buck that it is macro factors. You're not building credibility by saying that.....Why not say we screwed up and here is what we're going to do fix it? Own up to it NOW!
I am disgusted with CFO, Mr. Peter M, and lack of transparency into Company's financial performance. Stock is falling precipitously without any update on financial performance this quarter? No insider buying by CFO , even after 60% loss, also concerns me, despite Ms. Via's purchases. And last quarter, management was taking bonuses? This #$%$ has got to stop. It is time for shareholder activism and if management team is not going to put shareholder interest first as they are required to do as fiduciaries, it is time to clean house. Tell us the truth and stop sugar coating things. Ms. Via and Mr. Peter M - Please admit when you need help and ask for it. No more excuses. Institutions are now unloading because stock is below $4 so why don't you give us some news to cheer about? I have been a long-term shareholder but am losing patience. Make us proud and show us that you can show leadership qualities. Time to ACT is NOW.
Wall Street - Perhaps you need to cut Luann Via, CEO some slack and if you have taken the time to study this Company you will know what I mean. Their private credit card business has never been better, the Company is the most profitable it has been in years ,and is in the midst of a transformation with its MPW stores and its debt-free balance sheet. The fact that you can't even recite the CEO's name tells me you are just a trader. I buy businesses and this one still has a bright future. The fact that the Company lost nearly $100 million in capitalization in the last 2 weeks, simply because of a 10 million miss on revenue for one quarter is plain and simple stupidity. There is clearly opportunity here long-term. My basis is under $2. The reversal of the valuation allowance for deferred taxes (whcih I think will occur in the next 12 months) will add $1 to book value. This one is a bargain.
Looks like David Little agrees with me. He said they paid $100 million too much on conference call. OUCH!!!
Stock lost $580 million in market cap today.....iIs Wall Street wrong?
When the CEO is surprised by the performance of the Company, this is disturbing so I sold at the open at took gains. He should know how the Company is doing....I don't think the math adds up on the B27 acquisition based on their guidance for revenue and EBITDA....This is a HUGE acquisition which they took on a lot of debt (and there is a lot of blue sky in Goodwill hat could end up being worthless). I think this one has further to fall and it begs the question whether they got snowed by B27...it certainly looks like they got the better deal based on this first quarter, unless their business is highly seasonal, with relatively no sales in 1st quarter.
Sentiment: Strong Sell
Wow, what an ordeal! Waiting to sign the deal just cost shareholders at least a $1 per share. I'm glad I sold when I did at $19.50. Frankly, if this deal wasn't signed, I think the stock would be at $15 right now. This was a poor quarter and if it wasnt' for the life insurance proceeds on death of founder, this would have been a break-even quarter.
The company is clearly struggling and not getting any new deals done. It is a hard case in my opinion that taking this deal is not in the best interest of the shareholders now, given the premium Mill Road is paying. Greg Tunney is a great leader and it is sad that its run as a public company has to end now as I was hoping to reestablish my position at $15 if offer rejected...I think this decision took far too long and I suspect RG Barry was trying to get a tailwind at its back from operational standpoint to ward off Mill Road offer, but timing did not work that way. Oh well, good luck Greg...I will continue to follow you and hope you end up at another public company down the road.
I hate to say "I told you so" but anyone who would've listened to the last conference call shouldl've known that management is not looking out for the shareholders' interest. That came throught loud and clear.
Warren Buffet would call this stock a "used cigar butt" - just because it is cheap, does not mean it has value. Good luck to anyone who allocates capital to this company..
Sentiment: Strong Sell
When evaluating a business, you have to understand valuation in the context of future growth potential. Let me paint you a picture that is not going to predict what the stock valuation will be 1 month, 6 months, or even a year from now. What I do know, is that 5 years from now this stock will be higher. William Marth is a HUGE asset to this company. Check out his history at TEVA...he has proven track record of growth. He is a veteran in the generic pharmaceutical industry and he brings that to AMRI which has very little business in this segment. His 5 year growth plan is to achieve $1.3 BILLION in sales at a higher profit margin than current margins....we are now only $265 million in revenue. If we were to price the stock conservatively at 2X sales, that would $2.6 Billion in market cap. My money says he can deliver (Check out his stock purchases too - he is aligning his interest with investors - always a good thing). A $2.6 Billion market cap would mean a 4 - 5 bagger in 5 years (or $83 per share!) Wait and see...While I agree the stock has had a huge run in the past 6 months and could correct short-term, you don't want to miss out long-term on this one. I have a significant position in this stock and my original purchases were at $3. Buy, hold, and forget for 5 years....I am confident you won't be disappointed.
We are now another 4 months out since my original posting. It does not take this long to sign a deal. Warren Buffet gets a deal done with a handshake and this has been going on for months.
I have a lot of respect for Greg Tunney, but the Company is hiding something. I have done work in due diligence situtations and it should not take more than a few days to conduct that. If each party has hired an advisor, I would say give them a month to do a thorough study and make a decision. My guess is the deal is going to fall through because it should have been closed months ago and they are stalling. I wonder if they are trying to do a merger with another company or something more complicated.....exploring some add'l options.
On the up side, the company's financial performance is improving....so it is possible the stock may not correct as much I thought it would a few months ago. Without an offer on the table, I would peg fair value some where around $15 - $16 per share. I would consider establishing a position again if it dropped to this level.
Yes, I agree this is not an exciting stock, but I believe the smart money is buying now and I am confident this Company is in the midst of a significant turnaround and has the right management for the job. It is one of my largest holdings. The Street just upgraded to a Buy yesterday on the improvement in same store sales - This is significant.improvement. Look at the balance sheet and how they have improved in last 10 years. They had over $538 million in debt in 2003 and today they are down to $173 million, plus bought back a significant amount of stock. In addition, the Company has bought back over 10% of the outstanding shares of stock since 2009 - over 14 million shares at a average cost of $5.21 - $70+ million! This has created value for the shareholders. I am quite confident that you will be able to say 5 years from now (Wait and see they will be paying a dividend by then because of the significant cash flow) you will be glad for buying at this bargain price. I recently ate at one of their franchised restaurants and the service and food were outstanding. Menu and service have definitely improved. I didn't take management's word for it....but witnessed it myself. The proof is in the numbers. This is a bargain at today's prices and eventually Wall Street will catch on....my numbers tell me this stock is headed north. It is only a matter of time. Be there.
I am not at all impressed with management for this business. Last quarter they talked about chassis procurement being the reason for poor performance and that it would be deferred to this quarter. Yes, sales came through for the 4th quarter, but profits are far from a blow-out and were about 1/2 of what they should have been.
Yes, paying down the debt and increase in backlog has been positive and gross margin improvements are encouraging, but what about earnings? Appears they are taking out bonuses for poor performance. The way things keep going there will be other one-time adjustments we don't know about like divestment charges, severance, incentives to enrich management, etc. I am sick and tired of all the excuses. What bothers me most is they aren't willing to answer the tough questions on the conference call. I don't trust management. I am unloading all of my shares and taking the profit I was able to realize. Good luck long....I may be wrong, but I think the stock is overvalued at current levels.
It is pretty evident to me that Nick Caporella (who is age 77 and just happens to be the majority owner) is trying to sell the company. I doubt he is going to work forever...likely looking forward to finally retiring. I expect a sale of the Company in the next 12 months or sooner in the mid 20's, perhaps a little higher. He is trolling for buyers among Coke, Pepsi, Dr. Pepper, and perhaps others. Wait and see...maybe he'll give us a Christmas gift yet...My hope is that the sale occurs after end of Feb 2014 as I need long-term capital gain treatment. I am a relatively new shareholder on this train. The ride has been great so far.
I held my position for 5 years and had added to it about 2 years ago. Greg Tunney is an excellent CEO, but I can tell you a decision to say "yes" or "no" should not take 3 months to determine if in shareholders' best interest and still no sign of any decision being made. They refused to discuss on conference call. I wonder if there is an acquisition in the works. There is much more here than meets the eye...that I am sure of. It will get interesting once the fireworks get started. I suspect they will turn down the offer which is the reason I sold. Stock will drop to $16 or less if that happens as business is clearly weakening. The only thing keeping the stock where it is...is the offer on the table.
Any thoughts when we will hear the Board's decision on the $20 buyout offer? I am thinking management will reject it. Buyout at $20 appears to be fair, though, especially given last quarter's weak results (and it appears next quarter will be the same thing). Just don't understand why they haven't announced their decision yet....How long does it take to evaluate the offer? It's been on the table for quite some time. I sold my entire position in anticipation of a rejected offer as upside is limited...I view downside with certainly much more risk.
If the Board rejects the offer, expect the stock to lcorrect 20% or more. Business is weakening....I think Greg Tunney is a great CEO, but am disappointed they still have not closed a new acquisition since Baggalini. If offer is rejected and stock drops significantly, I may reestablish a position.
Sentiment: Strong Sell