FAOO- Will Q target be hit?
I think so. After holidays probably
Closed @ 1.65 today
News out. Suppliers not getting paid and not shipping.
siliconinvestor.com
To:Jon Scott who started this subject
From: scottonstocks Monday, Sep 16, 2002 5:16 PM
View Replies (3) | Respond to of 5119
FAOO- big short- closed at 3.83 on 14,500 shares
3 failing toy store chains morphed into what will be 1 failing toy store chain.
They couldn't cut it during roaring 90's, how will they fare during recession when high end toys and equipment not so desirable.
Look for Q in 6 months or less
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Some Suppliers Stop Shipping to FAO Schwarz
Friday December 13, 2:53 am ET
At least two large suppliers of FAO Inc. -- which owns the FAO Schwarz, Zany Brainy and the Right Start toy stores -- say they haven't been paid by the company in recent weeks, Friday's Wall Street Journal reported.
Subsequently, they have stopped shipping merchandise in this quarter, the most important of the year for the toy business. "They haven't paid us in six weeks, so we've cut them off," says a senior executive at a major manufacturer. Others, aware of FAO's cash difficulties, say they are still shipping but are watching their receivables closely.
The chain's biggest supplier, though, says FAO has been getting a bum rap, and that suppliers are jittery about all retailers in the wake of the bankruptcy protection filing by Kmart Corp. (NYSE:KM - News) "I think it's an overreaction," says John Lee, president of Chicago-based Learning Curve Inc., who adds FAO is up to date in its payments to his company.
FAO chief executive Jerry R. Welch, saying he was in a quiet period ahead of the release of the company's fiscal third quarter earnings next Monday, declined to comment. The company wouldn't address questions related to its present financial state, but a spokeswoman said, "FAO Inc. has more than 350 suppliers, most of whom are happy to be suppliers" to the company.
Two weeks ago, FAO said it didn't expect to meet its already reduced earnings and revenue projections for the fiscal year ending in February. Citing " restrained consumer spending and the weak economic environment," the King of Prussia, Pa.-based company said soft sales in the third quarter had continued into the early part of the fourth quarter.
The company's stock price has plummeted, from a high of $9.87 last April to a 52-week low yesterday of $1.92, before rebounding to $1.95 in 4 p.m. Nasdaq Stock Market trading. Wall Street Journal Staff Reporters Lisa Bannon and Joe Pereira contributed to this report.
biz.yahoo.com |
