VMIX looks like it is on its last legs:
Valley Media stock slides 30 percent
NEW YORK, Oct 8 (Reuters) - Valley Media Inc. <VMIX.O> stock slumped more than 30 percent on Monday after a Web site reported that the distributor of prerecorded music and video entertainment products had told some clients it was unable to fill orders for a second straight week.
Video Business Online, a Variety group Web site, reported Valley's sales vice president, John Gennari, as saying the company was only buying the product it could afford. It had warned customers as early as Sept. 28 that it could not fill orders for some DVD titles set to be released in October, the report said.
"Rumor has it that this company is in tough shape as its debt load is oppressive," said Alan Ackerman, chief market strategist at Fahnestock & Co.
With total liabilities of $349.25 million, Valley Media has a debt to equity ratio of 11, according to Reuters analytics.
The stock fell 53 cents, or 30.5 percent, to $1.21 on Nasdaq at mid-afternoon. Some 6,700 shares had changed hands by 1:50 pm EDT, down from a three-month daily average of 14,150 shares, according to Reuters analytics.
The company did not immediately return phone calls, and no analysts are known to cover the stock.
Even with Monday's decline, the stock is still up 61 percent in 2001.
14:25 10-08-01 |
