Silicon Investor (SI) -- The First Internet Community

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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (147351)	1/31/2002 8:51:51 AM
From: reaper	Read Replies (1) \| Respond to of 436258

<<is DDS (Dillards) terminal?>> Never looked at it before this AM. Quick take is unfortunately a middle of the road "hard to tell". No cash, big current account deficit, lots of debt, loads of inventory, terrible returns on capital. This could be very close to being an "operating BK" (a term coined by Grace I believe, to describe Amazon). They COULD turn this thing around, if they figured out a way to better manage their inventory turns -- there is a LOT of cash sitting on the balance sheet there. But, for all we know that inventory is CRAP and isn't worth much. These guys look like another confidence game -- if any of lenders, landlords (don't know if they own or lease, sorry; assuming they lease), or suppliers lose confidence (which they could have reason to do looking at Dillard's shaky financial footing), then it could become game over very fast, just like at KMart. KMart actually had a similar issue to Dillards in that they had a TON of inventory (relative to sales and square footage); they tried to fix this, doing a $100mm-ish supply chain deal with i2, but the software didn't work as advertised and they ended up ripping it out and that was the beginning of the end. Anyway, that's a longer answer than you wanted. hey, where is ild? He said yesterday he's LONG Rite Aid (RAD). Dude, RAD is SOOOOO BK. Get out while you can still get $2 bucks. Cheers