Take a real good look at the income statement.
These guys have a gross margin of under 7% and Net income % to revenue of under 1/2%. What this means is simple. For every "bad debt they have or insurance charge back of say $100 they have to Gross $20,000. Put that in perspective. For every time the President, CEO meet with their attorney's to discuss pending litigation or anything where they incur a $5,000 bill they have to sell $1,000,000 of product.
Folks that is a recipe for disaster.
From their press release...
" For the full-year 2015, we expect revenue between $2.8 and $3.1 billion, net income between $12 and $14 million, Our expectations assume 59,000,000 weighted average common shares outstanding throughout 2015"
So... on the high end.. That's about 24cents per share. At a robust multiple of around 25x (20% higher than current market multiple) you get expected share price of around $5.93 based upon 2015 full year revenues of again on the high side of $3.1 BILLION so that's about 1/2 of 1%.
ULTA - selling cosmetics.. in 2013 did $2.6 Billion of revenue and had an after tax profit of just $202 Million. Or 7.7% on Revenues.
Sorry, DPLO, if it were me and this is it. on nearly $3Billion of revenue. I'd find another line of business. Seems like this pharmacy business was a hobby you couldn't get away from and somehow made it a business. But, its too much effort for too little reward. From an investment stand point in order to justify $30 a share they would need to be doing $20Billion of revenue to create $1.50 a share and have a 20x multiple. As it is now their multiple on 2015 is around 129.
Its not sustainable.
Sentiment: Strong Sell
An end one way or another.
a. an end to the conservatorship and a path to freedom. or
b. an end to american society, culture, and the rule of law.
It was good to break this resistance level. But, it will probably be short lived. The overall market is getting frothy again. So look for a pullback across the board. This will take Fly down $2 bucks or so. Yes, I know fly hasn't paticipated in the recent feb recovery. But, expect it to suffer as always.
I know what you mean. I had to pay tax on phantom gains I didnt have because i still have not sold since i acquired Royce Labs shares in 1992. Sucked paying 25% tax on $140 gain i never realized!
I believe the cause for that was Actavis taking the company "off shore". Thus, it won't happen again.
It'll be a tax free - name change for you and me - i do believe. Oh, forget about calling investor relations - they are useless.
Sorry, but i don't know of many stocks that go from 30cents to $2.50? That's not a bad %.
I can think of no settlement opportunity that involves allowing the government to take or keep what they did not honestly earn nor are entitled to. Therefore the warrants are garbage. Berkowitz and Ackerman are wrong on their position regarding the warrants. The greedy government should not be allowed to keep what is not theirs.
Mu - shows current trailing EPS of 3.08 a share and Aug 2015 expected of 3.63 with Aug 16 expected of $4.18. This depicts EPS growth of around 16% per year. Yahoo show 5 year expected growth of 15%.
Mu currently trades at a discount to growth rates of 66% or so.
If Mu can sustain the 15% growth rate over the next 5 years its EPS will be around $6.35 a share. If the current EPS / Price stays - it depicts share price of $63-v today of $31.. Not bad a double in 5 years. But, if its able to show sustainable earnings at 15 and can trade at 15 in 5 years PPs could easily be north of $100. This would be a triple.
The opportunity, the MU has considering the cash flow it could generate and the ability to use that cash flow to return to shareholders or grow the company could easily see this with accretive acquistions be well north of $100.
For me this looks like a good target. And if the value remains un tapped . I'd expect a larger player to sniff the company for a buy-out. Could get really interesting.
Blake discussed this at last years shareholder meeting. He sees no value in splitting the shares. It costs more money to have more shares outstanding, he says there is enough and with odd lot trading being the norm now, you can eaisly buy 40 shares as 100. So no split.
Expect a healthy divident boost though. Will be up 20%
Been with Fly for since 2008. Right now absent the secondary and some management shenanigans the past couple of years, considering the dividend this should be in the mid 20's. Probably around 26 or so. Another secondary would be devastating on the stock. As it is, the last one was timed and priced to benefit management and not the shareholders.
Still holding... growing tired.
I realize this is counter intuitive but if as pundits say fannie and freddie are nationalized - you know owned by the federal government. Then why is there an income tax line / expense. Shouldnt that just be ... intercompany? I mean... how can you "tax your" majority owned subsidiary? So, then aren't the money going to the govenrment that much higher? In reality?
Exactly how is one arm of the government independent of the government?
I just can't see how that could ever be the case.
Its, like this is just "made up" lets play school / house / cops and robbers typed tom foolery.
How can one governmental agency agree with another governmental agency both lead by the white house and call it "an agreement" seems dishonest.
That would be like saying i agreed to sell my wife my stock in coca cola for $10 and take a $300,000 tax loss on it.
But your honor it was arms length agreement.