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

To: Harshu Vyas who wrote (74938)	1/26/2024 7:08:28 AM
From: Elroy	1 Recommendation Recommended By candsrr Read Replies (2) \| Respond to of 78496

Mario Gabelli is still alive?! Wow, there's a name I haven't read or heard for a while.

To: Harshu Vyas who wrote (74938)	1/26/2024 8:52:35 AM
From: Sean Collett	Respond to of 78496

I do think them not having their updated filing out is a bit of a red flag, new CEO or not. At this time you really have no view to their 3rd quarter 2023 and they are restating their 1st and 2nd - all of 2023 is somewhat of a blind spot right now. They were supposed to submit in January and now are cutting it real close. They fall into a Peter Lynch turnaround category for me so I have been looking at them as a possible add, but the filing errors are getting hard to buy into for that. The other concern I have is the share dilution. If I exclude their August 2022 10-Q, their outstanding share count has increased an average of 118.7K each quarter. The reason I excluded August 2022 as in that filing they stated they entered into a private exchange on their convertibles where they paid out cash and shares which then increased their outstanding shares by 1.4MM. Outstanding shares on their May 2020 filing were 17,463,025 and now are 19,615,478.00 according to their last 10-Q filed August 2023 - this is a 14.2% increase in outstanding shares since May 2020. As for big names buying in and a new CEO I think all the way back to Borders Group many, many years ago. Bill Ackman got involved and they brought in new leadership to turn it around. Sometimes turnarounds are hard especially if the leadership doesn't fully know the product & customer base. I keep them on my radar but for now it is a bit too risky for me. -Sean