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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (50410)	12/19/2012 2:32:46 PM
From: smaycs4	Read Replies (1) \| Respond to of 78602

The strategic plan doesnt call for ANY dilution. And no creditor gets a single share. Chairman already owns a bunch. Pays himself well and dilution hasnt been a big issue in the past. It also doesnt call for any cash dividends and the last 3-4 years, no sales increases or increased operating expenses. Also, it doesnt call for any cash flow from the sale of property. While STRZ screwed up with an ill-timed aquisition, even IF they hadnt, Im not sure that would have prevented the bankruptcy. The bankruptcy, as I understand it, was SOLELY because of a land or building owner where STRZ had a closed store. STRZ was & is to make ongoing future payments as their lease obligated them to. They had never missed a payment. The owner didnt accept that and insisted that the present value of ALL future payments was immediatly due & payable in one lump sum. Star refused to pay that and agreed to contuine paying monthly. So they forced Star into bankruptcy. Otherwise, I dont think they would have ever went into bankruptcy. Wells Fargo could have forced them into it but my impression is they knew they were well secured and wouldnt have done it. The learning experience for me is not reading all the way to the bottom of that 4/5/12 filing and finding their profitable FY2012 results & expections of significant profitability going forward. While Im not sure anyone could have bought even 10,000 shares below $1 by taking stock, I should have been there sitting on the bid catching some shares as bid fell below $1. Star would probably be better served selling out to private equity because they are too small to remain public and the public company expenses are too high.