Stocks that do well in recessionary environments Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stocks that do well in recessionary environments

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext

To: stockvalinvestor who wrote (4)	3/24/2009 4:00:15 PM
From: bruwin	of 6

Further to my comments in #5 below, CQB's last Financials showed a MAJOR Negative between CoS and EBITDA on its Quarterly Income Statement. To quote the company ... "In the fourth quarter 2008, the company recorded a $375 million ($374 million after-tax) Fresh Express goodwill impairment charge in the Salads and Healthy Snacks segment which is included in "Equity in (losses) earnings of subsidiaries" on the Condensed Statement of Operations. The goodwill impairment was the result of lower operating performance of the salad business in 2008, along with slower growth expectations, recent negative category volume trends and a decline in market values resulting from the weakness in the general economy as well as the financial markets." CQB's average Quarterly relevant number in its previous 4 Quarters was about $100mil. It's latest 4th. Quarter recorded OVER $482mil. pre-tax !! That important EBITDA Margin fell through the floor. This resulted in the company reporting a Quarterly Bottom Line Loss of -$8.65/share, compared to the previous Quarterly Bottom Line Loss of -$0.13/share. It comes as no surprise that its share price fell over 53% from about $13 in October 2008 to its current $6.15. Just goes to show, IMHO, that the pertinent numbers that appear in an Income Statement, which reflect a company's performance for the period, are far more likely to affect a stock's price than certain Balance Sheet ratios such as Book Value etc..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext