Quote:
Originally Posted by Diomed
If the stock drops to $1-2 dollars, that should be the lowest of the low.
At that point, they can attempt to clean up their assets, which might take a bit. But the stock will stay around that same price throughout.
If they do manage to survive while cleaning up, the stock will go up and stay up for the long term.
It's easy to shit on someone you hate, but they do have a fair chance at holding on IMO  |
At issue is the 450m debt and the fact that they net to common average loss of 40m. Sales is 350m and the gross number is great. The problems are selling and general 117.11m annual (wtf?) and interest 88m. Those two numbers eat all their gross.
How do you pay 88m interest on 450m? What did they do, go to a loan shark? Put it on their capital one card? if they got better terms on that and cut 20% of their selling and general (like stop sending affiliates on jets with penthouse models) they'd be profitable and their cap would go up to 500m again.