Well, to some degree, you've drunk the Kool-Aid. I think the true test will be whether we see any insider open market buying in here, in the low $3's. Otherwise, I'm waiting for tax loss selling season to begin in full force, before considering increasing my position. (But I'm definitely not selling in here....just relieved that I sold off 80% of my peak position....and now own roughly 1% of the company.)
I don't think they're going "goodbye" any time soon.....but I agree with you that $8 is a more appropriate price, at this point in time. But I suspect the big insitutional buyer is an aggressive buyer at $13.....and looking to continue to follow the pied piper of Mr. Rouleau.
Well, it's not "fantastic," if such sales are the result of more "blow out" discounts, to clear dead inventory....AND taking lower initial markups on new inventory....and not getting enough sales to fully "cover" those lower markups.
In short, the company is selling more, but at lower margins. And that is not just the clearance blow outs. That is the new merchandise they are getting in.
Do they have increased "traffic" because of all of the blowout merchandise....because people like the "fresher" assortment.....or is it because people love the cleanliness and the new cash registers, which Rouleau continues to hang his hat on, ad nauseum? None of the answers provide the reassurance that justifies at $14 stock price. Worse, if the inventory is now cleaner, WHY wasn't the average ticket up??
I tried to short more after hours, but was not successful. I wouldn't be surprised to see "the sheep" initially take it up, on the headline 9%+ sss growth number....but I'm hoping it trades down hard, after the first 30 minutes or so of trading. Not counting on it, though, with all of Rouleau's "true believers" out in full force. Willing to hold this remaining short position as a "core holding," though, at this point.
Sentiment: Strong Sell
I did. I think it is a close call, but ACI is more attractive. I bought in on a chunk, comprising 2.5% of my portfolio, in the early trading yesterday, at a $3.97 or so average.
I wanted to see if others had done a comparison and contrast of the two companies, and what they had found. These boards are for people to help each other, and that's what I am here for. You are obviously here for another reason. Too bad for you.
Sentiment: Strong Buy
I want some exposure, on the earnings release. I'm willing to bet that the insider selling, along with the atrocious earnings release last quarter, means downside momentum is continuing.
I hold a position, but an investor friend of mine asked this. Does anyone care to comment?
Did I read the recent press release on the sale of 30% of assets to Kang for $80M? By my math, it sounds like he is buying $126M of assets for 63% of value and leaving shareholders with ownership of the remaining $289M in assets and all the $153M of liabilities. Shareholders' equity is about to drop from $261M to $216M ($136M plus the $80M cash). Am I missing something, or is this an absurd deal? Why did the board agree to this?
I have had NO position in MNI for months on end, and only follow it. I certainly wouldn't want to be long, if I were you, with this earnings report.
I'm a buyer, for a trade only, at $2.00-2.25. Probably.
They can't afford these kind of continual declines in overall advertising revenue, while costs continue to shrink at a much lower rate. They're trying to offset that by raising circulation revenues...but over the long run, that's just going to cannibalize the company.
It may still be a few years out, but the writing is increasingly on the wall. This company needs a financial restructuring that cuts its debt roughly in half. Otherwise, management is going to continue to be in a position where they DAMAGE the asset values, for the sake of maximizing near term cash flows, for the sake of the equity holders....who are likely to be wiped out in the long run anyway.
I think a prepackaged deal that cuts the debt in half, and allows equityholders to retain maybe 20% of the remaining company would be an interesting compromise in this situation. But since the company is still well within its covenants, i suspect the cannibalization with continue...with meager/modest debt reduction going forward, that, unfortunately, is more than offset by declines in revenues and cash flows.
In short, equityholders are going to LOSE the game of "chicken" here.
The CEO has a 10 year employment agreement, that "renews" every month, maintaining a full 10 year term, into perpetuity. Worse, in the event of a change of control, he gets paid the ENTIRE 10 years remaining on his employment agreement. That is SLEAZY.
Vote to REJECT a CEO who refuses to respond to ANY shareholder attempts to contact him. I thought about buying a ticket, and flying to Hong Kong, just to confront him in person....but I can't find my passport, and am not sure I can get it updated in time anyway.
This company is a joke, managerially, and has an ethically diseased board and governance structure. HOWEVER, they did pay a $1 a share dividend, not too long ago, which tells me that the cash per share, as they disclose it, is almost certainly true and real.
You degrade yourself with this kind of humor. As does your opponent. You both sound like 12 year old schoolboys. Not men. Which compromises your credibility as being an honest an forthright and impartial analyst about the stocks you hold.
You have always eveidenced yourself to be a "true believer" here, who "needs" to believe he is going to make a killing. It may go up, or it may go down, but getting caught up in your emotions will serve you poorly as an investor. And seeking to "best" and "destroy" and "degrade" people who disagree with you is the mark of someone who is infantile and insecure.
Well, it's pretty silly to say they will be "out of business" in two years. The balance sheet is too strong for that. Unless you expect the new guy to do dramatically WORSE than Mason. And I don't see why that would be the case.
The danger here isn't that the company is going out of business anytime soon. It's that it ends up being a perenially low ROE or no ROE company, that "bleeds" over years on end...or doesn't build any addl. shareholder value over years on end.
This has been a great turnaround, but there's lots more to go, for them to get where they need to be....and "momentum" has taken hold here. Golden GAte is exercising warrants and selling for a reason. I'm shorting if it goes over $20.
You "learned"? Tell us the truth. You, the poster, ARE the attorney with the listed phone number. Sleazebag.