"You are so deluded."
No, it's basic accounting principles.
Too, there are lots of examples of firms who go through periods of negative earnings (and positive EBIDTA), sometimes quite extended periods, without BK. Not only no BK, but eventual (sometimes spectacular) recoveries. AAPL in the late 1990s is a prime example--it was literally days/weeks from zero cash.
Sorry if facts don't fit your prejudices.
"Negative shareholders equity is not a catalyst for bankruptcy. "
Certainly not to service interest--you're absolutely correct.
However, positive equity and operating income certainly impacts the borrower's ability to deal with debt maturity---either pay off or refinance.
These are the context of my original comments (I agree with you !)
Let's be clear: EBITA is a better indicator than earnings of a firm's ability to service its debt (earnings before interest and non cash charges---closely approximates cash flow), at least in the short/medium term.
JCP's fy14 earnings are, indeed, negative (after debt interest service), and it reduces shareholder equity. And, shareholder equity is still positive at fy14 end at ~$2BB, meaning that JCP is not in any imminent danger and has the time/means to continue its turnaround.
Mr. Muckle may be a tough guy on anonymous MBs, talking tough.
But, Ms. Hillary has achieved far more in her life, made a far greater difference to this nation, so far than he ever will.
If he were to look in the mirror---what do you think he'd see?
A click of the mouse and rascals like Mr. Muckle are dismissed forever.
You've nailed the essential points (including in your other post).
The volume today clearly signals institutional buying--that's why the share price has turned around from the initial plunge.
JCP is really interesting, provides insights into short-term oriented, impatient mentalities. The HUGE strides that M.Ullman et al has made in the past 2 years is completely ignored. The turnaround continues---I suspect that not only will the share price be much higher by year end, but the cast of characters on this MB will also be quite different.
Not unexpected---there was bound to be profit taking after such a sharp run year-to-date.
Q4 results were decent, indicating that JCP is making the right moves in its turnaround. (those who wish to see quantum leaps are bound to be disappointed.)
+4.4% comps in top line is no manipulation, nor is the + 5.4% increase in gm. The $57MM increase in free cash flow is another.
You can close your mind--but let's avoid baseless allegations. There's no miracles nor shortcuts in this turnaround--JCP is doing hardwork and steadily moving forward.
Oh, no. You're not kidding anyone--you own title of Wacko, posting non stop.
Let, go, buddy. You really need to learn to let go and get on with a life off these MBs.
Dirty Harry's words come to mind, as we all mosey on down to the OK corral:
Uh uh. I know what you're thinking. "Did he fire six shots or only five?" Well to tell you the truth in all this excitement I kinda lost track myself. But being this is a .44 Magnum, the most powerful handgun in the world and would blow your head clean off, you've gotta ask yourself one question: "Do I feel lucky?" Well, do ya, punk?
"Or is this the Yahoo equivalent of road rage?"
Internet tough guys like eranger don't impress me, they're impotent fools. It's so easy to dismiss them---takes just a click of the mouse to vaporize them.
See, these guys can't even beat a mouse!
I wonder what would happen to HLF's financials if it were to do away with signup/annual fees paid by its distributors?
ie, rely 100% on product sales?
"Another misguided sap. Let me reiterate; LINE will never see $20 again. Never ever ever. Got it?"
Well, that's pretty definitive.
Experience has taught me to always leave room for doubt.
"Tell them about the 900,000 share bet, reported on CNBC."
They can easily look it up if they wish; but, it doesn't matter by this point as those who have delighted in prematurely celebrating JCP's demise will soon receive a very rude awakening.
Very heavy and bullish options activities this week.
Very bullish share price activity since the start of the year.
Keep your eyes on operational matters (store mangement), the financials will follow (lagging indicator in this turnaround)
Why are we down?
1. Negative sentiment in the energy sector
2. Residual post spin-off selling by OXY shareholders
Management seems to be projecting 1.0x coverage this year.
84.1MM units outstanding (upon conversion of the subordinated units) x $2.2/unit/year = $185.02MM/year
From 2015 guidance: Mid-Point Distributable Cash Flow ($MM) = $185MM
"It has set a plan to reclaim $2 billion of market share after it lost $6 billion in the last three years."
That $6BB in lost sales provides A LOT of opportunities for improvement. Something that our resident basher team simply refuse to even contemplate.