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Something rarely seen: A hedge fund CEO with only a bachelors degree in marketing, and from a lackluster school... University of Jacksonville. His background... a stock broker.
I'm very familiar with Build-A-Bear, too. Kanen's gripes are on the mark. But I wouldn't touch its stock. Smart people have tried to right BBW for decades.
Clearly sour grapes from investing in GOED at a higher share price!
Boohoo...
Average down... that's how it is done!
"KANEN WEALTH MANAGEMENT LLC" owns 4,792,742 GOED shares, about 4.5% of GOED's shares. Value was $18 million on last 13-F filing.
"Kanen Wealth Management is based out of Coral Springs. Kanen Wealth Management is a hedge fund with 111 clients and discretionary assets under management (AUM) of $191,823,428 (Form ADV from 2021-03-31). Their last reported 13F filing for Q2 2021 included $438,128,500 in managed 13F securities and a top 10 holdings concentration of 87.34%."
https://whalewisdom.com/filer/kanen-wealth-management-llc#tabholdings_tab_link
[part 2] "The problem, Kanen says, is leadership. The company [GOED] recently replaced CEO Doug Moore, who oversaw the decline, with Fouerti, who Kanen supports. But the board members that hired Moore remain.
Those same board members were also on duty when leadership made the decision in May to sell shares — well below market value — to raise money for the acquisition, sending the share prices tumbling. A few days later, the company gave Moore a raise and $150,000 bonus.
“They’ve demonstrated the ability to consistently make bad decisions,” Kanen said. He proposed replacements from CarParts.com and other successful companies.
Build-A-Bear is in better shape. Surging consumer spending driven by government stimulus fueled some of the best quarters in company history in the first half of 2021. The share price has more than tripled since Jan. 1.
But it’s still about half as high as it was in its mid-aughts heyday, when the company could rely on its shopping mall storefronts. It posted a net loss for the past decade. And while executives talk about parlaying the pandemic bump into more permanent growth, Kanen is skeptical. He said in his letter that despite making $20 million since John took the top job in June 2013, revenue for the past 12 months was 10% lower than it was in her first full year.
"Kanen wants the company to partner with chains like AMC Theatres and Chuck E. Cheese to set up stores within stores and multiply its reach with little cost. He also wants a pet toy line to sell at PetSmart and Petco, which he thinks could add $50 million a year in revenue — a 10% bump from 2019’s haul. And he wants leadership to try something like NFTs, the digital collectible items that exploded in popularity among cryptocurrency enthusiasts earlier this year.
John told Kanen in an earnings call last month that the company is working on a pet toy plan and is in the process of upgrading its online ordering experience, another thing he wants to see.
Kanen hopes it’s true. If John follows through, he thinks the company could see big gains.
But if she doesn’t, within about a year, he’ll be calling for a new CEO."
https://www.stltoday.com/business/local/the-status-quo-is-unacceptable-activist-investor-targets-build-a-bear-goedekers/
Sounds like a guy that is pretty full of himself!
'Status quo unacceptable': Activist investor targets Build-A-Bear, Goedeker's"
"ST. LOUIS — David Kanen sent two letters to St. Louis companies on a recent Thursday, and neither was very friendly.
The Florida-based investor told appliance retailer Goedeker’s that more than half its board needs to go.
The other letter hammered Build-A-Bear for lackluster revenues, declared its CEO overpaid, and suggested board members were asleep at the wheel.
Kanen also listed a number of opportunities he said Build-A-Bear had missed that executives needed to seize.
“The status quo is unacceptable,” Kanen told the teddy bear seller.
And just like that, the two companies were put on notice. Kanen, a former A.G. Edwards broker, is an activist investor, one of a special class known for writing frankly worded missives laying out struggling companies’ problems and demanding improvement in a hurry.
His firm, Kanen Wealth Management, managed $197 million in assets as of Dec. 31. By his own account, he’s gotten what he wants about a half-dozen times in as many years and secured favorable results for clients and companies. But it’s not easy: Executives can shun the advice, returns can be slow, and sometimes, he has to call for new leaders to right the ship.
In response, Goedeker’s CEO Albert Fouerti called Kanen’s complaint a “disturbing” distraction, and said Kanen and the rest of his nominees to take control of the board lack the skills to run an e-commerce company.
Build-A-Bear CEO Sharon Price John indicated the company is already doing several things Kanen wants as it looks to ride a pandemic-related boom back to long-term prosperity.
“The people at Build-A-Bear aren’t stupid,” said Jason Long, founder of local consulting firm Eye on Retail.
Kanen, 55, was born in Queens, New York, and grew up on Long Island. He went to college at Jacksonville University in Florida, where he majored in marketing. He then worked stints at two smaller firms before joining St. Louis-based A.G. Edwards, then the largest brokerage outside New York, in 1992.
He worked there for 12 years and it left an impression: Kanen still cites advice he received from the late CEO Benjamin Edwards III on the importance of building a reputation based on results, not rhetoric. Kanen spent the next dozen years at four other firms and gradually moved from selling investments to clients to advising clients on what to buy. He started Kanen Wealth Management in 2016 and called his fund Philotimo, after a Greek word that generally describes righteous or honorable behavior.
The activist bug bit later that year. Kanen had invested in a company called MagicJack, which made a namesake device allowing users to make phone calls through their internet connection, and he didn’t like what he saw.
“They had a poor management team that just really didn’t care, the stock was very cheap, and they were adding little value,” he said. “I was very frustrated.”
Then it dawned on him: He didn’t need their permission to speak his mind. He sent an open letter excoriating the board and outlined a six-point turnaround plan in August 2016. He got a man on the board six months later, and within a year, the company was bought out at a nice premium."
https://www.stltoday.com/business/local/the-status-quo-is-unacceptable-activist-investor-targets-build-a-bear-goedekers/
Insiders sell for many reasons...
BUT THEY ONLY BUY FOR ONE REASON!
GOED Well, I'm just taking a WAG here that he wants to see the PPS a lot higher, going forward.
MG
GOED CEO buys 330k shares at $2.95!
GOED Tropical Storm Nicholas is brewing off of Texas. Heavy flooding is expected. Could mean even more appliance replacement business for GOED!
For further reports, follow "FLOOD UPDATES" by pzot.
Note: he is having computer issues, such as the F key crossing with the B key. His FLOOD UPDATES require some patience to wade through.
MG
I just heard
he may have brought the old credit card reader. didn’t know that it’s 2021 and they use chips to take credit card payments. no more swiping
no Sunday mass full geriatric margin retail sales for GOED
swiper no swiping - oh mannnnnn
any tropical storms brewing? someone needs something newsworthy to post
I can’t confirm but I heard
they may have broke out a credit card reader in the vestibule, too.
that’s where the bathroom is. mass is long when you gotta tinkle every 1/2 hour
full sticker price at that age too. GOED margins!!!!!!!!
Cool... sales via word of mouth!
someone overheard a conversation this morning
in mass
hey you geriatric lady. I saw you in the 3rd pew. do you need a new washer dryer?
go to this website. here I have a pen for you.
and jot down this stock symbol big things happening
G …..O …..E…..D yes D for the last letter, that’s right
GOED That 27 of my closed 28 positions in 2021 are green comes from selecting stocks with great potential like GOED, not a 42 year, not one product originated, thoroughly failed penny stock*.
It's about the shot selection as much as trading skill.
MG
pzottkpz Friday, 09/10/21 04:44:10 PM
Re: Stock_Barber post# 602 0
Post # 603 of 606
I have been learning from the best trader and poster on all of these boards who says
that’s what pump and dumps do
I don't remember mentioning the S&P...
How did other similar retailers do again today?
S&P declined 0.77% today. Two of my blue chips hit record highs today (Cintas and Danaher). Market was hardly clobbered.
In a weak market one doesn't want to be in a tiny untested stock like GOED.
LOL!
Well, I smiled at that!
I have been learning from the best trader and poster on all of these boards who says
that’s what pump and dumps do
so yes that’s what I said
he would be so proud of me standing up like this
cue to - tear running down my left eye like the fake indian in the commercial
Uhh... the whole market got clobbered!
To suggest that this decline is GOED specific is not even remotely plausible!
looks like
there was a lot of pain trying to just hold the figure before the weekend
no hurricanes or disasters on the horizon so what possibly can be so exciting to attract any new GOED bagholders ?
those poor newbies- down almost 10% from just last night.
ouch!
disregard
my last request. phewwww
my computer just came back up
GOED $3.08 I think that’s down over 7% from that posting
more newbies getting torched and tortured
pain and suffering seems to be the theme
too bad Hurricane Larry looks like a miss. No extra FEMA checks. darn!!!
still could be a “nice day”
can you
please provide the current GOED summary
my computer is on the blink again
TIA
kraken kracker jack krackle who dat? hahahahaha
GOED After Hours Summary:
Consolidated Last Sale $3.32 +0.18 (+5.73%)
After-Hours Volume 202,883
After-Hours High $3.35 (07:50:23 PM)
After-Hours Low $3.11 (06:11:13 PM)
GOED That would be awesome! Click over to "weekly" to see that beautiful rise!
https://stockcharts.com/h-sc/ui?s=PRTS
Up in AH trading...
Kanen Wealth management I misspelled the last post
Looks like we have a fight on our hands. kraken has 4.7 mil shares avg @$3.84. They now own 5% and want seats on the board. Gonna get interesting. Holding 5300 shares and Jan 2021 $5 calls. Could be another PRTS
Hurricane Larry meandering in the Atlantic
GOED investors salavating for more devastation!
as if Hurricane Ida wasn’t enough …..more more more
mods mods hello hello hello hello hello mods mods hello hello hello
although I do agree anyone that wishes death so they can gain sales is ….well ….
Hurricane IDA death toll rises as it nears 100 over the 1500 miles of devastation
Happy GOED investors dancing on graves!
the damage is just the “price” of doing business!!
oh wait no … those people weren’t doing business they were minding their own business
but don’t worry about them ……higher margins !!!!!!
who needs a 4 burner stove when you can have 6!
goooooooo GOED!!!!!
BLOOD MONEY UPDATE
Hurricane IDA death toll rises. Happy GOED investors dancing on graves!
the damage is just the “price” of doing business!!
oh wait no … those people weren’t doing business they were minding their own business
but don’t worry about them.
goooooooo GOED!!!!!
BLOOD MONEY UPDATE
Hurricane IDA death toll rises. Happy GOED investors dancing on graves!
GOED ANOTHER nice day!!
Will we get tired of winning, like some with buyer's regret now did with fmr. President Trump?
I looked at my GOED position at lunch, saw the continued nice rise in the PPS and exclaimed, " winner, winner, chicken dinner!"
I upgraded from the chicken sandwich to the entire chicken for lunch. Threw away the skin and the breading.
I believe we have a winner.
Added today.
MG
BLOOD MONEY UPDATE
more collateral damage from Hurricane Ida
someone just got shot and killed at gas station in Louisiana cutting the line for fuel shortage
10 dead in Louisiana alone
over 60 people dead so far in New York, New Jersey Pennsylvania,Connecticut, Louisiana and the other states over the 1500 miles of devastation, but it’s okay because we are being informed that Hurricane Ida is a good thing because FEMA and insurance companies will be writing checks to buy much needed new appliances from GOED!! and we were also told MARGINS WILL GROW THIS PERIOD TOO! Insurance companies pay sticker price BABY!!!!!!!! GET THOSE TOP OF THE LINE APPLIANCES! wooooohooooo!
I wouldn’t use that as the guideline
even though it’s probably the only true thing that ….
jim and tammy faye bakker would say anything to get people to join
GOED Flood Update
Due to the extended reach of the Hurricane IDA reported by pzot, it is fair to say people will be replacing an inordinate number of appliances in the immediate period. This should be a tremendous boost to GOED's revenues. Furthermore, since in-surance companies will be footing the bills, people will be ordering the best models. That means higher profit sales.
Expect GOED to book record sales and profits this quarter and beyond.
I feel very optimistic about my substantial investment in GOED.
MG
Looks like a great quarter on deck!
BLOOD MONEY UPDATE
over 50 people dead so far in New York, New Jersey Pennsylvania,Connecticut and the other states over the 1500 miles of devastation, but it’s okay because we are being informed that Hurricane Ida is a good thing because FEMA and insurance companies will be writing checks to buy much needed new appliances from GOED!! and we were also told MARGINS WILL GROW THIS PERIOD TOO! Insurance companies pay sticker price BABY!!!!!!!! woohoooooooo!
4.5/5 star reviews... sweet!
Nuttin' but supply chain issues!
Scroll Down To Read Recent Reviews, under new structure. Terrible.
https://www.sitejabber.com/reviews/goedekers.com
Yup supply issues worldwide!
A rational consumer would realize that one can't blame GOED when manufacturers don't deliver!
However, no one every said that the current instant gratification generation was rational!
Goedeker BBB Reviews Remain Terrible.
https://www.bbb.org/us/mo/ballwin/profile/major-appliance-dealers/goedekers-0734-110208035
GOED Margins very likely to rise in this environment.
Get GOED!
Have a wonderful long weekend, all!
MG
Have a link to where anyone ever suggested that deaths were a good thing here?
NOPE!
Because no one did!
Did they?
BLOOD MONEY UPDATE
death toll closing in on 50
https://apnews.com/article/northeast-us-new-york-new-jersey-weather-60327279197e14b9d17632ea0818f51c
That is conflating 2 unrelated things...
Being happy that more appliances will be ordered to replace the damaged ones in no way suggests that one is happy that 23 people died...
Just silly!
BLOOD MONEY!
23 people dead so far in New York and New Jersey (not to mention the other areas over the 1500 miles of devastation), but it’s okay because we are being informed that its a good thing because FEMA and insurance companies will be writing checks to buy much needed new appliances from GOED!!
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1847 Goedeker Inc.1847 Goedeker Inc. is an industry leading e-commerce destination for appliances, furniture, and home goods. Through its June 2021 acquisition of Appliances Connection, Goedekers created the largest pure-play online retailer of household appliances in the US. With warehouse fulfilment centers in the Northeast and Midwest, as well as showrooms in Brooklyn, New York, and St. Louis, Missouri, Goedekers is a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. Goedekers and Appliances Connection carry many household name-brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also carries many major luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Viking among others and sells furniture, fitness equipment, plumbing fixtures, televisions, outdoor appliances, and patio furniture, as well as commercial appliances for builder and business clients. Learn more at www.Goedekers.com. |
We are offering 91,111,111 units, each unit consisting of one share of our common stock, par value $0.0001 per share, and a warrant to purchase one share of common stock, in connection with our simultaneous acquisition of all of the issued and outstanding capital stock or other equity securities of 1 Stop Electronics Center, Inc., Gold Coast Appliances, Inc., Superior Deals Inc., Joe’s Appliances LLC and YF Logistics LLC (commonly known as Appliances Connection) as described in more detail in this prospectus. The warrants included within the units are exercisable immediately, have an exercise price of $2.25 per share and expire five years from the date of issuance. The shares of common stock and warrants contained in the units are immediately separable and will be issued separately.
Our common stock is listed and traded on NYSE American under the symbol “GOED.” On May 27, 2021, the last reported sale price for our common stock was $6.07 per share. The warrants have been approved for trading on NYSE American under the symbol “GOED WS” and will commence trading on May 28, 2021. In connection with this offering, we have applied for the listing of our common stock and warrants on the New York Stock Exchange, or the NYSE, however, we do not currently meet the minimum share price requirements of the NYSE and will not be able to list our common stock and warrants on the NYSE unless we meet such minimum share price and other listing requirements of the NYSE.
We are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and are subject to reduced public company reporting requirements.
Investing in our securities involves risks that are described in the “Risk Factors” section beginning on page 25 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Per Unit | Total | |||||
Public offering price | $ | 2.2500 | $ | 205,000,000 | ||
Underwriting discounts and commissions(1) | $ | 0.1575 | $ | 14,350,000 | ||
Proceeds, before expenses, to us | $ | 2.0925 | $ | 190,650,000 |
____________
(1) See “Underwriting” beginning on page 124 for additional information regarding underwriting compensation.
We have granted a 30-day option to the underwriters to purchase up to 2,000,000 additional shares of common stock and/or warrants to purchase up to 2,000,000 additional shares of common stock, in any combination thereof, solely to cover over-allotments, if any.
Certain of our existing stockholders and certain of our officers, directors, employees and related persons, have indicated an interest in purchasing an aggregate of approximately 2,779,600 units in this offering at the public offering price. However, because indications of interest are not binding agreements or commitments to purchase, the underwriters may determine to sell more, fewer or no units in this offering to these persons, and any of these persons may determine to purchase more, fewer or no units in this offering. The underwriters will receive the same underwriting discount on any units purchased by these persons as they will on any other units sold to the public in this offering.
The units will be ready for delivery on or about June 2, 2021.
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