Along with revenue is increased debt. Generally companies that merge will encounter issues that will accumulate expenses of some sort, thus markets don't often approve of mergers. How many mergers are smooth transitions? I know my company had no smooth transition no matter how many corporate emails were sent to employees telling us nothing would change.
I did my due-diligence based on the financial report data. What can you offer? I don't claim to have the answers, but I do have that theory which has served me well in the past. I can wait. If I am wrong, I find something else to evaluate. I know two insiders bought and that is unprecedented in this company, but ... I know like it sounds as if I am talking the price down, but I justified my calculations.
I am cranking the numbers based on the old company shares. I don't know how earnings is influenced by the merger. Their is probably more than one way to evaluate the share price.
I might be able to help. I was curious too. Last year the low price for the stock was $50 on Feb 2014. At the time, the number of shares was approximately 205.6M according to the annual report. Using $50 and 205.6 to establish capitalization value, we get 205.6 M * $ 50 = $10280. Then DLTR merged with the other company . If you look at the last quarterly, not annual report, their number of shares recently increased 34 M to 234M shares., but we don't know the low yet. Based on last years low capitalization value of $10280, divide that number by the current number of shares or 234M. You get $10280/234 = $43.93 I got spanked on a stock that behaved in similar manner when shares increased unknown to me too.
Nice stock. I sold a few months ago. I think I can wait until it is cheaper again. Perhaps in December. Once the price goes above the 200 day average, it's time to look elsewhere. I thought it would decrease a little more last week, but wasn't expecting the dividend announcement. So be it.
I will just continue to wait at least another month to consider purchasing this stock. Their product helps people, but the market doesn't care.
As I recall, a past report didn't reflect well on growth of business even though hospitals need the product.
I might like to repurchase, but I will wait a few months for its price to fall more.
I don't own this stock any more. This stock still has a bright future as the company sets up the infrastructure. regardless of the earnings.
Perhaps I should assume an identity like faux_michael_moore_is_fat and start posting :)
I sold this stock because nothing moves it up. I read about that issue and they made a presentation at some conference and they got publicity after deaths of people using other scopes from infection, but nothing seems to matter .
I sold mine. Maybe it was a mistake, but the market will go down in the next few months with all the Chinese market news and elsewhere. Government has been pumping money into it for years and nothing came from it, just like the Japanese found out.
lackluster performance is not to to the revenue the company brings in during the summer. I was looking forward to the weathers influence on the stock, but their summer season is off little consequence now.
I will have to look at the cash flow statement.
The people reading the comment board believe you guys .
I appreciate how you presented your argument with data, but I just don't agree with your gloom and doom sentiment because your last sentence is mere speculation without proof. This stock was at $.10 a share a few years ago when the cash flow was negative, so these prices are a deep discount since the cash flow is now positive. I believe a few months from now, this company won't recover to old price , but people who are selling will be kicking themselves wondering why they sold instead of buying.
an intangible asset is amortized according to a an amortization schedule as any other asset, but goodwill isn't amortized.
Quarterly statements show goodwill is being reduced over the last few quarters.
You are just mixing knowledge of the accounting data with your own speculation to imply that the company is a going to have issues and dump on the stock. The stock has positive cash flow and the intangibles value was higher last year than it is this year .