Gross margins are improving. The company is stabilizing...which means Orchestra-P should be even MORE interested than they were before. OR maybe a private equity white knight comes in here.
My guess is it is taken out for $10 cash, in the next few months. If not, it's a decent hold for a intermediate to long term turnaround.
200% debt/equity ratio.
If they want to pay in (mostly) stock, my attitude is they need to pay $12.50 per DEST share...especially considering how much O-P has run up, over the last few years.
....help DEST direct more business to its free standing stores and boost overall margins? Or will the overall loss of sales from loss of total sales outlets end up being a disaster? They seem like they know what they are doing....but why are they only guiding for a low single digit same store sales increase in 2016?
Mike, you are a scourge on these boards...and unto yourself. Your self-pitying negativity, and dwelling on past losses does not FREE YOU UP to find the "next winner." You are a sad sack. Investing is about learning how to "move on," first and foremost, and looking for where the greener pastures are, rather than gnashing one's teeth in permanent cynicism. The markets are the markets; it is nothing personal. Why don't you just admit to yourself you don't have a mature enough pyschology to manage your own money, and put it all in mutual funds. And free us of your seemingly interminable bitterness....which drags everyone down on these boards...and is a complete embarrassment to you. Have you ever tried GRIEVING, in order to let things go?
With $330 million of cash. Leaving aside covenant requirements, it appears they are burning about $35 million quarterly. But when the Maersk contract is up and running, that should drop to $25 million a quarter. Add in SOME kind of oil price rebound, back into the $50's, by year end, and it is hard to see why the quarterly burn couldn't be down as low as $15-20 million, about a year from now. With all this in mind, it would SEEM that they might have at least THREE YEARS worth of cash.
Being able to buy something that is currently DEBT FREE (net of cash), for less than 1/10 of book, when that asset value has been FULLY written down, under fresh start accounting, SEEMS like a great opportunity. The runway is established....and the exploration of strategic alternatives is a "kicker." (We don't HAVE to sell out to anyone; we are NOT desperate.)
It still amazes me to think this thing has an EV of about ZERO, as we speak, give or take....and just prior to bankruptcy, it was well over a billion. Seems like a huge "disconnect," especially since there is a boatload of "runway" now....and the "new" common owners are clearly vested in getting their money back.
Sentiment: Strong Buy
What exact form are you, or runsfortheroses, thinking a final version of the bond amendment will look like?
He has a voice mail that says he is "no longer with the company." I am presuming management is taking an additional meat cleaver to costs, to gain the full confidence of the lenders....and Gary is an unfortunate casualty.
He was hired as head of IR at Westmoreland Coal, per their press release. Looks like he moved up in the world. Good for him. A class act if there ever was one. He will be missed.
Amazing. I guess to the "Street," it's not a sale until its actually recorded as such. But doesn't this get the "clock ticking," on a "catalyst event," that might very well establish that thing as worth a hell of a lot closer to book value? Is the zoning change granted to the developer, that allows this land to be DEVELOPED, worth nothing??
I'm amazed it's not at a $10 bid, at least, at this point. Just For one, ALL the debt is paid off now.
Who ever heard of something with a hard book 3 times the current stock price, and no debt, trading for 1/3 of book? And after the land is sold, they still have these ROCK SOLID notes that pay them like 12%+, for years and years to come.
I wish the 80% owner would just take it completely private, right now, at, say, $13. I don't need to capture every last dollar.
Will ANYONE ever figure out this company, other than me?
Sentiment: Strong Buy
I posted an article last Friday, that is now available for free, to all comers, for the next 30 days or so, before going back behind the paywall. Seeking Alpha deems the article a "must read."
In the article, I explain, in great detail, why I have set a 3-6 month target of $8-10 on the stock, 6-12 month target of $10-15, and 1-2 year target of $14-18. In a better case scenario, the stock could see as high as $30, in a couple years...assuming the company's venture into tissue is successful.
Sentiment: Strong Buy
FYI, I posted a Seeking Alpha article on RFP this past Friday....the first article I have posted since my article on Claude, just over a year ago. I would welcome any Claude shareholders, who appreciated my analysis here, to join me on the "ride" with RFP....whose train seems to be just leaving the station now.
$56 million in trailing 12 month FCF. But $900 million in debt. And print revenue declines continue to KILL them.
Question: Does anyone have ANY estimated range of what the non-newspaper digital (i.e. CareerBuilder) are worth? If they could get, say, $500 million for all of this stuff, and monetize another $100 million in real estate for the parent company, wouldn't that put the company in a much different place?
Are there ANY private market value estimates for CareerBuilder?
Completely asinine. DElusional. GRandiose. WAste of money.
THe only one that is going to make money on this deal is Nick Jonas.
Apparently, Sharp is now taking management advice from his 16 year old daughter. Brilliant.
It, along with his mealy mouthed babbling in the conference call, makes me not want to reenter, unless it drops in to the mid $10's or less.
This management team is completely boneheaded, and the business has suffered from lousy returns forever. (WHy can they only earn $1 in EPS annually, with a $20 book value? Why is a 5% ROE acceptable??)
This company needs to be taken out of its misery, and someone needs to swoop in and buy this thing out for $16.50. It needs to be part of a larger entity. Watching Sharp & Co. fiddle around with the thing, and think they are good enough for the shareholders, is Like being put in a straitjacket. And the Nick Jonas thing shows that the guy is now totally out in left field.
FInally, WHAT is the exact excuse they didn't buy back stock over the prior months? Locked out? WHY??