Firoz Lalji, chairman of a $1B+ reseller:
The reporting persons believe the Issuer is poorly managed and is one of the poorest-performing companies in its industry channel. The reporting persons believe the Issuer has not done as much over the past several years to drive growth, profitability and stockholder value as other companies in its industry. The reporting persons note that over the past three years the Issuer has seen no revenue growth, stagnating at approximately $1.4 billion annually, and has cumulatively generated net income of approximately $16.4 million on revenues of approximately $4.26 billion, which the reporting persons believe represents a wholly-unacceptable level of 0.4% of revenue. The reporting persons further believe that the Issuer’s Chief Executive Officer, who is also a founder of the Issuer, is compensated at unreasonably higher levels than those of his peers at similarly-sized companies. The reporting persons intend to engage in discussions with the board of directors of the Issuer regarding these concerns and other matters relating to the business, including exploring ways to enhance stockholder value and to generate financial performance no less than the median levels when compared with the Issuer’s competitors, as well as evaluating whether a change in management is appropriate and whether the Issuer should remain an independent public company.
It doesn't look like he has enough cash, so he'll need some help.
won't happen? So you don't think a company with $1B in revenues would ever trade at $1.7B? If this were a normal co, the stock would trade at maybe $500M or half revenues (I'm being generous), so that's about $7. $24 is very possible, even likely.
You've got this all figured out and everything, but doesn't the company have to report earnings? I know that BJ can just bury all the bad news in restructuring charges, but he does have to report cash flow and revenues and so on. Isn't that a big risk to your greater fool scenario?
and basically whoever is buying this debt is also buying the warrants, so it will be shorting the stock with impunity FOR YEARS Basically COWN management just eliminated any hope of stock appreciation in exchange for more cash to build their empire.
sure it's not convertible to stock. but then they have to buy a huge put position on their stock should COWN need to issue a ton of shares to pay off the debt. so basically it is convertible to stock. plus the dilutive warrants. so basically, reaming the shareholders again to build their empire.
sorry it was Cohen who said "I mean, we're not going to be buying stock at sort of a premium to probably a tangible book value. I mean, it's dilutive to our overall equity." well so much for that promise. it lasted less than a week.
no rest for the weary Cowen shareholders. just more dilution and more stupid empire building. and this just days after solomon said no dilution. I don't know what they plan to buy, but don't worry, the clownshow continues.
that's the goal. but the goal in the best year, not over an entire cycle. over an entire cycle the ROE would be what, 5%. that's the best case scenario. right now the bank is STILL LOSING MONEY.
compare with FBR or JMP . . . Cowen is run by idiots
pcm is managing 10% return on tangible equity. the bad news is, huge amount of leverage used to achieve ordinary results. margins in the commercial business are improving, so that's positive. ultimatly I just don't get why the macmall isn't shut down. it's a bad business with no potential. but there is a floor on the stock price as long as pcm manages 10% roe.