let's rewrite the latest press releases a bit
this pig went up 70% yesterday on pure spin
sales for 3 months grew a "wopping" 5% but for the 5 months fell 1%
orders grew 16% and gross margin and order size increased BUT actual buying customers FELL from 99,000 a year ago to 92,900 now and the cost to fill these orders ROSE 39%
so fewer customers buying more stuff so that the company can lose more on each order
to hire the new CEO
-spent $2,800,000 for new management
-gave him options to buy 1,100,000 shares at about $8 a share
-LOANED him $2,500,000 to buy stock
--this loan is forgiven, ie, does not have to be paid back if he stays 5 years or if he dies
free cash on the balance sheet fell to about $10mm
this means that given the loss run rate the company has maybe 3-5 months worth of cash left to stay in business
in the 10Q we find:
"The Company anticipates that existing cash and marketable securities may be insufficient to fund the Company's operations and capital requirements for the next year and is currently evaluating financing opportunities. There can be no assurance that capital will be available to the Company on favorable terms,or at all"
they do a big PR on putting this WMT guy on the baord saying he is making a "substantial investment"
what they do not press is that they have also appeared to hire his company to do work for PPOD
one might assume that this is a trade off well against PPOD and in the favor of the ex WMT guy?
the timing of the earnings release and all this pr just before the WVBN ipo was perfect
if I was an insider and could sell my shares at this price (can because with earnings out I am not locked) would I sell at these prices?
this one looks like the short gift of the month to me
possible pain if it runs for a few minutes, hours, or days, but a slam dump for a big gain when it crashes |
