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.
....compared to the year ago quarter. Why didn't the esteemed Mr. Rouleau not even deign to address that VERY SALIENT FACT in the conference call.
I bet the numskulls at Primecap take this thing back up to $14...on all the hoopla in the conference call.....and continued "high fives" over the new cash registers at Tuesday Morning.
It's clear that Rouleau MEANS WELL....but the EVIDENCE suggests very clearly, that from a merchandising standpoint, he is NOT getting there, and not GOING to get there.
There is NO reason the average ticket should not have been higher, if they now, purportedly, have all these (lower initial markup) bargains on the shelf.
The fact is that Christmas was an IMPORTANT test for the new merchandising model....and that model is, quite self evidently, FAILING.
But god bless Primecap....and their blinders. There's one born every minute.
Sentiment: Strong Sell
Christmas results should have been MUCH better. Where is the TRACTION here??!
Sentiment: Strong Sell
Adjusted Operating income was down nearly 20%, versus the year ago quarter.
There is NO freaking "turnaround" here.....whatsoever!
They're not really moving the sales needle at all...and the overall margins are LOWER.
This should be an $8 stock.
Sentiment: Strong Sell
Manufactured housing is doing so dramatically better, but RV is in the doldrums. If they sold RV, they'd eliminate a major source of losses, while raising a significant amount of cash. Then they could use the cash to buy back stock....and the remaining operation will probably be materially profitable this fiscal year.
Sounds like a no brainer....but don't trust this VERY insular board to consider such reasonable options.
I think 10x ebitda is a bit high. This is a radio company, primarily, and only partly tv. I think $6-10 is a more than adequate target range for roiak this year.
I also think it is foolish to say emms is fairly valued when it is selling for less than 10x the run rate of eps now....and is significantly deleveraged. Emms would be worth $6 in an outright sale of the company, i believe. I think $4-6 is a good 2014 target for emms.
Top picks are probably ACI, COCO, CLGRF, HTCH, TC, TECUB.
I'm looking to reenter HERO at $$4.25-4.50....but it may not get that low.
These guys are incompetent boobs. Best hope is the stock drops to $6, on a bad earnings report...and we get a 2nd chance for a sale of the company at maybe $12. Or maybe the sleazy Chinese outfit comes back in with a bid?
I think it's going lower before it has a chance of going higher. You can bet that these numskulls took there eye TOTALLY off the operations, while they were trying to sell the company.