It could accelerate revenue and increase it. It would also get those rental units off the books. BUT...the lack of emphasis on sales success is where you should focus. The disposables that are ordered by the users is the real profitable revenue stream they need to succeed. There seems to be a poor performance by the sales team across the product line...that needs to be addressed.
If you check out other similar circumstances of prior companies that separated the real estate from the core business model, THEY ALL DID WELL. The process frees up cash and creates a new revenue flow and value basis for the entire business.
We are 12 days from earnings. This trend in PPS may indicate that large positions know much more than this posting group. AND, if they disappoint in the report or CC the shorts will take this to the toilet.
If the Markets take a hit (correction) this will be sucked down to low single digits. It has great potential but time may be against it. Low cash and no sales momentum will kill it in a down market trend.
With earnings coming in Aug, why would they let this out now ? My concern is that they know the earnings report WILL NOT be as expected. This may take another big hit when the report comes out.
Keep some powder dry.
If that Arun quote is correct, and they significantly miss, the lawsuits will be many.
What CEO puts those type of forecasts out there prior to a quarter ? This seems wrong.
They are shorting it going into the 'earnings'. Without any marketing hype, and no recent 'good' news, they will push this down. The Exec Team needs to get out there and tell the story and highlight the value & potential.
I would like to rate BUY, but the leadership is weak.