A perennially underperforming business with no real place in the market. Will NEVER earn sufficient returns on investment. You can play it for "flukey" earnings swings, year to year, but it seems to me that you are playing with fire, as eventually, they're going to fall on their face too badly, breach covenants, and have to financially restructure.
Owning this stock is about as big of gamble as it gets. Avoid.
The longest and best version of the story is on the Planet Money Website. Has me playing piano at the end....
The arrogance. The tin ear. The obliviousness. The fact he didn't know just how BADLY the company was "twisting in the wind."
The company could have been save for its shareholders, if this dweeb would have simply left....and the board members would have been attuned to just how ticked ED was.
This all should have NEVER happened. It is absurd that the shareholders of COCO got screwed, merely because of ED's intent to "teach Jack Massimino a lesson."
This guy is his own kind of Madoff. Keeping his job, and brazenly DEFYING the Federal Govt. Was a HUGE miscalculation. Shouldn't SOMEONE in that boardroom have seen that? Wasn't the departure of Leon Panetta supposed to be a wakeup call??
Really, it is a balancing act between "a bird in the hand," and the one in the bush. The one in the bush offers a stock that could double to triple over the next 6-12 months, imho....so any premium in a take out would need to justify foregoing that opportunity. In the end, it should be up to Claude's shareholders...although it is understandable if management, in good faith, believes more value will be created, in the intermediate term, by going it alone (per last week's press release). That having been said, ANY offer that represents a 50% premium over market, or better, should ABSOLUTELY be taken to the shareholders, and I would encourage any such interested party to contact Claude's largest shareholders, if they should feel they are not getting the time of day.
Like Firth is ACTUALLY independent of the founding family? Laughable.
Why didn't they disclose the "best offer" received, on the table, and let their broader shareholder base decide.
They are going to run this thing into the ground, because the management team is horrendously insular, and is a relic to a time period that DOESN'T EXIST anymore for this company.
Unless they replace most or all of the top executives, this thing will be bankrupt in probably 2 years.
Sentiment: Strong Sell
You're just #$%$ because you sold out, and kicking yourself because I "tricked" you into selling. Admit it. You secretly LOVE the company, and wish you would have kept those last shares, just so you could have a chance at a 20 bagger.
No one said the company itself is a fraud. The fraud is the misplaced enthusiasm, and PRETENDING that "all is well" here, in order to keep the shell game going, that they actually are "in control" of turning around the merchandising here, and they "only need more time" to capture more of the "low hanging fruit" (after 2 effing years in charge!) THAT is the fraud.
No one said it was "going under."
These are "loyalty purchases," which Rouleau "expects" from his top executives, at a time like this. Because it is CRITICAL to buying them more time on the Street. So it's "chump change" in that context.....as it allows the game of musical chairs to keep going on. Rouleau hasn't "failed," as long as the stock stays strong.
That having been said, I expect a further rally on these announcements. Fortunately, I only shorted 1000 shares....and look forward on making that 10,000 or more, if it goes back up to the low $20's.