The COO is his hand picked successor. The new Claries (focus
on teen and pre-teen) is the idea of the COO. I do not think
it is all that bad for this new COO to control the company.
What I am really confused is that back on 10/29 (?) the CEO
comes out and say next quarter will be outstanding. Now, if
he is not telling the truth, he (and CLE) will be in a LOT of
trouble! If he is telling the truth, CLE with plenty of CASH,
no debt and 4-5 winning quarter, why would the stock drop
~40% from the top? Is this over-reaction or WS knows something
the rest of us don't know? I am still thinking when the
earning comes out, the trend should change but then again,
I have been wrong.
Regarding the take over price, usually the price to sales
ratio is a pretty good indicator. You would want to use current 4
qtrs sales - cash + debt / market cap. If the ratio comes out
to be less than 1, it is @ good value. I don't think CLE P/S is
less than 1, this is because of its growth rate and good margin.
I don't have any data with me, so I can't get the number for you.
You are right on about the market condition. But I am a long
term investor so I should not run if there is a short term correction.
And the worst that could happen is a 3-6 months correction, I hope. |
