Think that BBX could trade down into the $12-13 handle. Penalties not coming for 3 months, end-of-year stock sales, de-risking from funds - won't be very good. I intend to buy more then, but not now.
did they increase their salaries or just give them better titles? I thought that G&A wasn't really changing from it.
. . . for stealing my assets. After you find operators and sell your REIT to Omega for a 100% in a year, please do send us shareholders a thank you note.
looks like a run-rate of $1.50 of CAD / year now WITHOUT any proceeds from Fox. At the least, they can pay down debt with any proceeds from the Fox divestment.
It's not people you (or I) have ever heard of. The stock was written up on VIC, Seeking Alpha and a few other blogs. I would guess that there are 15-20 small funds with position sizes of $500k to $3 million in either of the names. The companies they invest in are getting crushed elsewhere.
I don't think it has to do with the insider selling plans or the settlement announcement. Unfortunately, think that it just to do funds that hold BBX. Many of them are small-cap focused, or event-driven and have been pummelled over the last 6 weeks. They are taking their leverage levels down and reducing risk. Think that BBX / BFCF are just caught up in that selling. Am guessing that they have programmatic sells in the market and probably want to do a lot more than they are accomplishing, but the stocks are now lower than their limit prices, for today at least.
There's a bunch of reasons for the stickiness of milk prices. The flip-side is that as you mention, this is the most profitable time to be a milk producer in recent memory due to low feed costs and high prices. If you believe that a commodity industry will continue to enjoy premium margins, then Dean is screwed.
Down 20% in a few weeks, in an up market, should be the best signs yet that the company shouldn't have entered the 22k cbm market. They should just stick to the 5k-8k market, wait for charter prices to go up, and then pay a dividend to shareholders of the 4 or 5 percent version.
I have sold half my position, but the value here means this remains painful. The thing I hate the most about this company is their f'in website. Harry is plastered all over the thing like a king. What has he done? Also, how much does his 'family' actually own? It doesn't seem to be too much.
annualized EBITDA will double over the next 12 months
they should spin off search. The stock would trade at the same price and it would force everyone to value search separately.
Think you're wrong about scale, they actually have massive scale advantages. While we see them as struggling, smaller milk processors are actually going out of business. Think about their competitors with one milk processing plant in an area who are operating at 80% of capacity. If demand goes down they just underutilize their plant while if demand goes up they have to expand capacity. Dean has the ability to service the demand from a different plant and then just ship it to the end customer. Similarly, if demand wanes as it did these past two years, they just shut plants down. They are taking massive SG&A out of the business, while there is no way for their competitors to keep up. The competitors are going to keep going out of business, giving Dean even more of a scale advantage.
If these guys weren't family owned, they would all have been kicked out years ago. If they just had the same SG&A %s as their peers earnings would be 2x higher. Can't wait to hear the excuses that they love to give for why compensation is up 9% year-over-year, but all their initiatives are supposed to be so they can be more efficient.
think people are giving up. They were buying into Rothamel's strategy of higher retail / web sales with e-lending adding to growth in future quarters. 4 of 7 Board Directors replaced, Cohen putting his stamp on the business means a new CEO with another long-term vision and a stronger Cohen.
Great question. Kind of forgot that one person can do this whenever they want.
Overall, our results have been terrible for a long time with earnings down over 50% over the last few years - this was probably overdue.
The company already pre-announced earnings when they did the convert a few weeks ago so doubt it can be that different. The good news is that Rothamel made a lot of $, so maybe it's accretive to earnings!
congrats, Dan. How does it work? Do you bet every horse for every race and then you can only bet a specific horse in the final race? If more than one person had won, does that mean you get nothing? What are you going to do with your money?
Think you're partially right. Also, remember that EZPW is probably still 40-50% undervalued off of normalized earnings. The undervaluation has something to do with CFPB/regulatory, but much larger is the terrible corporate governance the stock has had forever. While this is only one step, it is a very important step. If it continues, then the company could start to use its cash to buy back stock or pay a dividend, instead of dumb overseas acquisitions.