Check the Form 4's.
I don't know whether to reshort now, or wait for higher prices. (Rallying market could take this POS higher, maybe?)
Highly respected "value shop." And the also highly respected renaissance Technology doubled its position to 500K shares from 250K, roughly.
Very good news, to see these two major players increasing exposure...and in the case of Third Avenue, INITIATING THE ENTIRE 2 MILLION SHARE HOLDING, in the quarter.
I didn't see a press release announcing the sale of 9 properties. Is it in the Q?
.....while reducing my actual shareownership position....in order to "lever up" for the short term gains i see here, as the stock market continues to rally...and unfavored sectors come into vogue.
Also sold sold March $4 calls naked, taking in 35 cents. I am protected down to $3.65.
Sentiment: Strong Buy
....and I'm THRILLED to see this rally.
I had been quietly accumulating, over the last couple years, at prices up to $5. The asset value here suggests a valuation, over the next 3-5 years, of around $20+....but the recent explosive rallies in affiliates TCI and ARL (although on low volume), in context of the price/book multiple TCI and ARL sell at, suggest that IOT would be comparably valued to its "sister" companies, if it traded up into the low double digits.
I'm not sure the quantity would have been large enough, that they would have give me the time of day. (I bought in two separate blocks....and wasn't sure, until recently, that i wanted to increase as much as i did.)
Now up to 2% ownership of the entire company. Liquidity is fine...and that's the most important thing. Plus, the value of Heald gives "omnipresent" protective cushion. Plus the company is actually talking about being PROFITABLE for the year. Tons of sales leverage here. Astonishing, really. Not sure why someone doesn't swoop in and try to buy it out.
Sentiment: Strong Buy
Closing 500 stores is DEFACTO evidence that Magnacca was not successful in creating any kind of xmas turnaround. (They were saying, a few months ago, that they were not looking at any material closings.)
The xmas quarter results are going to be horrendous....and i expect to get a buying opportunity in the $1's....for a trade. Longer term, i now think this business is DEAD.
I cleaned out the last of the shares of the large institutional holder, whose selling was weighing on this stock.
I now own 1.2 million shares, or 3.5%, and am one of the company's largest shareholders.
I like the turnaround potential here, and believe they will be able to raise the capital needed to restart the mine, and get back to positive free cash flow, with minimal to modest dilution of tbe common holders.
The stock is undervalued, based , primarily, on irrational fear, and i believe we can trade well up into the $1's, and maybe higher, as we get closer to the mine starting back up, later this year.
This company has the added kicker of being a takeover candidate.
Sentiment: Strong Buy
E-mail sent to Scheriff and Franklin....
I am up to x.x% ownership, roughly.
I am disturbed, and sickened, by your fiduciarily corrupt behavior, on the compensation committee.
[link to this Yahoo post]
You were clearly "posturing," and MANIPULATING ME, when you "sought my guidance," a couple years ago, on Horowitz's pay package.
You are in Horowitz's back pocket, and have no self-respect. Either that, or you are incompetent boobies. Neither one is edifying.
YAWN! Is this the best way to go....or is custom tailoring for each local market?
Let's be honest....the most impressive aspect of Rouleau's vision for TUES is the intent to broaden assortments, lower initial markups, and increase the "better branded" composition of the mix.....and thereby, in theory, increase turnover, "store excitement," and decrease "dead inventory." If that vision succeeds, then none of this nonsense about cash registers, or "store standardization" will matter. It's about BUYING RIGHT...or the lion's share of it is, anyway.
My problem is that there is NO evidence, from the Xmas season, that that strategy is working....with adjusted operating income down nearly 20% from the year ago quarter. What Rouleau has evidenced, simply, is that he is able to push more stuff out the door, at LOWER overall margins, and hire more people to help get that stuff out the door, bloating the company's costs. Why am i not impressed? And why is Primecap salivating??
Not anguished. Irritated.
No one is shorting this stock because of a hope for bankruptcy.
We're shorting because it's overpriced, based upon an inability to earn ANY material return on equity. This company has become like pariah ACLS, and what does that one sell for? 1/3 of book. Now TUES has no debt, so i'm not saying it should sell that low....but if Rouleau were not so well spoken, confident, and were not such a skillful snake oil salesman, i fully believe you'd have the stock selling at $6-8 now.
Calling this an "outstanding" quarter destroys any credibility you might have. No objective analysis could possibiy call it that. What are you basing such a claim on? Improved inventory turns? Or still lovin' them new cash registers, i'm guessing?
Why don't you address the fact that adjusted operating income was down nearly 20% in the quarter. Naw. You'd rather have us pay no attention to the man behind that curtain.
The fact of the matter is Rouleau has had 11 months!......and the Xmas quarter should have shown more dramatic increases in sales and margins, to EVIDENCE that they are "on their way" to earning $1+ in EPS again. We see nothing of the sort here. WORSE, Rouleau MISCALCULATED, and jacked up the store level SG&A, to improve the "store experience," and has NOTHING to show for it.
We got more visits...but a LOWER average ticket. Why is that not a problem? People are liking coming around more, because the store are cleaner and more organized.....but they are NOT buying more stuff. If they haven't, by now, when will they.
I look forward to reshorting this POS at $15-16.
Rouleau's groupies are drooling.
Will reshort at $15....or before the next earnings report, in any case.
I made money on this short....and did cover 1/3 in the couple weeks before yesterday's earnings.