I wouldn't laugh to hard at him, up to now that trade has been right for awhile. He may have been right, I just don't like his style.
Just an observation. Short interest has steadily gone down over last 6 months. We are now down to a mere 13%. Lessening the chance for a squeeze but that's OK, Ill take gradual progress to the high teens.
I don't think a buyout is possible because a lot of their volume is from 1 key customer. Allegedly Google. If a company bought them out at a premium there is no guarantee that Google would deal with new customer. It is my understanding that they have products that are convenient compared to their competitors, but are not unique. However, they have great relationships with their current customers and work closely with them to satisfy their needs. Another reason why most company would not want to buy out.
owned this company for over 3 years. Was a Cheesecake Factory employee when their company head chef was talking about it. Not naive, have watched mgmt and company languish for long time. HOWEVER, I'd rather hear something going on than wonder if the doors are even still open. Im already counting on the money being a loss but in back of my mind I grasp a slimmer of hope that something, someday might materialize.
Im Long and added. However, I think it would take an unobtainable 4th quarter to reach the 1.29. I think realistically we should be happy if they get 1.10. Other than that I like your thesis. 2 years ago they issued special dividend of 1$ plus reg div of .25. Wouldn't that be great hear, especially since borrowers/shorts have to pay it. Maybe the company is looking at spending that 15M in buyback before the dividend, (someone is buying today giving it support, or we'd be under 10), then dividend will be additional ROI. Im willing to give this company 6 more months to see sales stabilize. Sales at this level are still great for this P.E., I just don't want to see sales to continue a down trend. Will keep adding between 10 and 11 dollars. Currently own 11k shares at 13.25 average.
great synopsis, I heard that too. I heard that new vehicles and new dealerships were the reason for the big jump in inventory. Next earnings will be key. I am fully allocated at this point at 4k shares, added twice yesterday on the pull backs, for an average of 21.67, but would add if the price moved 10% lower. Thanks for your reply and good luck.
It seems that 5.2 is on the high side for the sector. I am looking for any others over that. Looks like Toyota is close to 7, but most others are under 5% profit margin. I think its the huge dealer inventory increase due to your mentioned "new vehicles" but also because of an increase in new dealerships.
I was thinking it was a back log thing even though the company stated that number isnt as important because manufacturing capabilities have been ramped up. I figure its just a hedgy taking some L.T. profits into strength. He's made his money, we can continue to make ours.