Speculations on rumours and heresy?
Many rumours surfaced on the Raging Bull svcdq board, which has some key words to note. May clearance, downsizing, sublease, The Gap and Old Navy, all the real estate properties including warehouses, remodeling, Fleet Retail, new corporate name, and class action lawsuit plans by small group of stockholders are but a few important clues.
Wearing rosy glasses, one can see a successful outcome based on the presumption of Fleet introduces Gap to buy SMC, taking half the store space adjourning a jewelry store with kiosks to do business on the internet. If Gap buys SMC then the name change makes sense. The new facility that Fleet retail signs, is underwritten by Robertson, Stevens, who is an investment banker. This behind the scene situation requires speculation whether they will buy from the bankruptcy court or the stockholders? Only time will tell. But the market makers probably already knew who the buyers are today.
Wearing dark glasses, one can summarize that Sam Cusano had planned a course to lose money from January 2000 to April 2001, which planned losses were recorded in the 8k filing on Fleet agreement. If that is the plan then the court should solicit alternate plans. This plan is the bases for wiping out the stockholders. A negative net worth of substantial proportions, running the company SMC to the ground. Where as the business plan of 1999 has a favourable outcome in the X'mas season and could be repeated with some improvements by management. Robertson, Stevens, therefore, had an outlook which is not in the interest of the stockholders. They will be the largest creditor. Later, sell SMC to Gap, after April 2001 when SMC makes money.
This, of course, all hangs on different ending. How during the year, the performance of SMC, in the ever improving economy, is going to happen. Cusano may find SMC making money in spite of the deficit planning. SMC is just too large to have hands on control. If he deliberately sank the company, Judge and trustees at the bankruptcy court will have responsibility.
In all this speculations, is First Pacific Advisers a straw?
The plot thickens. |
