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We're not the same, and my only agenda is pointing out the business issues in this stock. I have no agenda to defame the exec's or any one on these boards.
I rarely see a stock:
1) with a business plan that is built on spending increasingly faster than revenues are increasing and priced so high (Revs/Share is ridiculously low and Price/Rev is ridiculously high).
2) performing acquisitions repeatedly with stock - a house of cards, (which repeatedly dilutes existing shareholder's stakes).
I originally discovered SWSH from TheStreetSweeper.org, but now hold my PUTs based on the stock's overvaluation on the market.
I anticipate that SWSH on Monday will reaffirm its continuation of this flawed business plan, and the shares will continue to decline. In fact, the CEO has promised "more of the same".
Double Jeopardy
I think Dmiller and Realistic SOB are the same person. Or, Perhaps they just have the same agenda.
For the life of me, I don't understand how people cannot see this flawed premise. I guess they would eith just rather piss their money away or they have a gambling problem.
I agree with the flawed biz model.
You can't make money by increasing losses faster than revs.
The execs always win (in every company), so that isn't really a negative specific to SWSH.
Not sure any of your replies made any sense ... and you asked me not to reply ... but, I do agree - there is money to be made on the swings.
Current swing is strongly down ... money made ... why fight it.
Next swing (in month or 2) might be up ... we'll see ...
Well - I don't bash the stock or others people on the board - I simply post facts and try to have an honest discussion.
Wayne stated on CNBC that he will NOT be an active participant in running this company, Steve will be responsible for the daily ops. Wayne said that he lives in a different state an cannot be involved in the daily ops of the company. Name one company Berrard was successful building/running when Wayne wasn't around? Not Gerald Stevens, not Jamba Juice. There was another co. but the name escapes me.
The shorts don't need the luck, the longs do. Any accountants own this stock? I doubt it as they would see what a flawed business model this company has. It will be impossible for them to ever turn much of a proft due to the constant dilution to fund their stupid paltry acquisitions. Look at the amount of shares outstanding already and they've barely even started as a company.
Berrard and Huizenga GAVE themselves 25 million shares. It will be next to impossible for them to lose money. This company is a scam and I still haven't seen a single person on this board refute that scathing article. It's all true yet you guys still want to gamble with this POS. Berrard has failed at every biz he's run without Wayne's active daily involvement. This fiasco won't be any different. Live & Learn people.
Disclosure: I have no position long or short not do I ever plan to establish one.
Not making any prediction of a "sudden" turn to profitability. Many of the posts seems to suggest profitability will never happen based upon what the company was doing with the franchise model they previously employed -- in fact they suggest the larger the revenue base, the larger the loss per share becomes. The franchise model is not what they are doing anymore and that needs to be taken into account -- to do otherwise is to engage in a simplistic trend analysis of the P&L. No doubt SRB will discuss this Monday evening.
There is money to be made in this stock upwards and downwards. You bought puts -- are you in it simply to make money like you already have or are you trying to ride this down to the number suggested by the "Value Club" outfit (I'm sure Graham and Dodd would be proud of that group)? No need to answer. Signing off for the weekend. Ciao.
How have your posts not been deleted yet? iHub doesn't allow any talk but bullish talk!
Go look up the latest company to be delisted from a major exchange, and you'll see a nice long list of big institutions. Bottom line, it's not just as easy as looking at what the "smart money" is buying and saying, "they can't be wrong."
Price is ridiculously high. Negative PE.
Their revenues are $63.6M/148.5M shares = $0.42 Revenus Per Share, giving a Price/Revenue (PR) ratio of 14.3 based on the current $6/share price. Ridiculous.
Ecolab (ECL), by comparison, has a PE of 23, $26.6 Revs per Share and a PR of 2.0, based on a current price of $52/share.
No matter how you look at it, SWSH is WAY overpriced!
So you're predicting a sudden turn-around to profitability? That would be an miracle (or fake accounting).
So far, most of what I've heard on this board is Longs hoping that things will get better, or comparison to some other company with a different line of business completely. No facts. No figures - just hope.
I have provided facts, figures, etc. that show the company is in a downward financial spiral, and the market clearly believes it will go down as evidenced by the huge short position.
Not short (my broker can't even borrow these, they've all been locked up by big shorts).
PUTs ... that's the real story.
One way or another, all I've posted are facts.
We'll assume that you are LONG and hurting right now or buying CALls.
I am fascinated at the number of negative posts by people for whom the demise of SWSH and SRB seem to be personal. Whether you like SRB of not, he is a very smart guy that will grow the company quickly and it will become profitable much sooner that some think. Tom B and Tom A are also extremely bright guys. The recurring revenue model they have is a good one and once they add some more solid waste into the mix, the cash flow will become very strong. HWH and SRB have dealt with shorts before (Blockbuster and Republic nka AutoNation) and they prevailed. Monday at 5:00 p.m. will be interesting. Tuesday morning at 9:30 will be more interesting.
Negative Posts
Realistic SOB has over 20 negative posts since the streetsweeper.org article. Gee, I wonder where he's vested? Good luck, Shorty.
CEO Barrard commits to continue to lose money!
Berrard ... as for dealing with the short sellers, “we intend to perform. We will do a good job of putting out results like we have. This is not our experience with short sellers.”
"Putting out results like we have" then means continuing to lose money -($17M) in 2010 ...
Short Interest up 39% last 2 weeks of April
Settle-Date Short-Int Avg-Daily-Vol Days-To-Cover
4/29/2011 7,367,833 2,668,932 2.760592
4/15/2011 5,307,430 2,021,059 2.626064
3/31/2011 4,906,570 392,471 12.501739
3/15/2011 4,418,798 312,535 14.138570
2/28/2011 3,964,662 1,167,572 3.395647
2/15/2011 1,865,163 649,392 2.872168
Read more: http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=SWSH&selected=SWSH#ixzz1MF2q8stl
.Financial Post FP Street Financial Services News
FP Deal Flow .
FP Street Follow the Money
Swisher sets record straight
Comments Twitter LinkedIn Email .Barry Critchley May 13, 2011 – 7:00 AM ET | Last Updated: May 12, 2011 6:18 PM ET
Steve Berrard is chief executive of Swisher Hygiene, the entity reborn last August when it merged with Cool Brands International, a Canadian shell with lots of cash. He is ready to set the record straight about Swisher, its strategy, its balance sheet, its integration plans — and short sellers. Here are the highlights:
Strategy
Swisher will continue to make acquisitions. Berrard insisted it’s not embarking on a “roll-up strategy,” which he defines as “buying a business in a market as a standalone and then try to gobble up synergies and efficiencies.” Now when it makes acquisitions, “those businesses are being integrated into already existing businesses. [With an acquisition] we are taking the customers and the employees…. So there are immediate economic synergies. The value of acquiring these customers is buying market share.”
Strengths
Swisher has an attractive scalable business model with an established brand identity, operates in industries that are widely followed and has access and availability to capital with an experienced management team. “We are a sole-source, low-cost provider of essential hygiene and sanitation solutions, products and services. We are not a restroom cleaning company,” said Berrard, noting such activities generate just 20% of its current revenue. (For 2010, revenue was US$64-million; for 2011, it’s expected to be US$200-million.) Sales of chemicals, linens and facilities services (mats, bath towels and waste collection) make up the rest. And that revenue is “primarily re-occurring.” Berrard says through acquisitions Swisher has “created a significant point of differentiation between ourselves and the people we are competing with.” He says revenue in the four sectors it has identified is US$93-billion with no dominant provider.
Capital raising
Berrard said the old Swisher couldn’t have raised any capital had it kept its old strategy. Thanks to three private placements that help fund acquisitions, it has US$160-million of cash and access to a US$100-million credit facility. “The story would not have as much meaning if we didn’t have a capital structure in place today that will allow us to make acquisitions and grow our business. If the stock is $11, or $5 or $3 that’s not going to change our plan. We will continue to buy businesses and add additional customers and put additional products into existing customers.”
Investors
Berrard said buyers are attracted “not because of 2010 results. They are looking at the second half of 2011 and beyond,” because “they believe we have built a base that we can grow significantly. They are investing because the historicals give them an indication that we have an ability to grow this business rather dramatically and profitably as we have done in our past lives. We [Berrard and partner Wayne Huizenga] have a long- standing track record.”
Detractors
Berrard defines this group as “those who are looking backwards. Those are not investors but [people] who have an axe to grind, or [want] to turn over the apple cart relative to the progress we are making. They are short sellers.”
As for dealing with the short sellers, “we intend to perform. We will do a good job of putting out results like we have. This is not our experience with short sellers.”
Stock price moves
Berrard said the changes — it started the year at $4.79 rose to $10.10 (on April 18) and closed Thursday at $5.44 — means “people made a lot of money along the way and some took profits, a smart thing to do. Nothing has happened fundamentally in the company to cause that decline.”
.Posted in: FP Street Tags: Cool Brands International, Steve Berrard, Swisher .
"that the news can only be better than expected"?
How's that? More bad news would be seen as good news ... very odd opinion.
4tg, well said.
I am not going to voice an opinion which unlike some earlier opinions never let the facts intefere with the opinion, but I would suggest review the facts, reconsider the opinion and since it is unlikely that the corporate demise will be announced monday and that the news can only be better than expected, shorts will be covered in advance
There is NO chance of a profit and although CCs try to be positive, they don't always help share price much if the financials are bad (again) and there is no improved outlook or raised targets.
Realitic SOB, I don't know if there will be a profit, but I've usually found conference calls to be positive. We'll find out!
Givd, based on customer relations. I was told it's listed on the filings.
Givd, based on customer relations. I was told it's listed on the filings.
Losses increasing faster than revenues.
Earnings ps (EPS) are currently -$0.26/share (negative)
http://ih.advfn.com/p.php?pid=financials&symbol=SWSH
Increasing losses faster than revenues is not success.
Dec 2009: Revs=$56.8M, Income=(-$7.3M)=loss
Dec 2010: Revs=$63.6M, Income=(-$17.6M)=loss
http://finance.yahoo.com/q/is?s=SWSH&annual
Spending money faster than they are increasing Revenues (Revs increased $7M, losses increased $10M) is not a good situation.
Do YOU think you'll see a profit on Monday?
Interesting insight----
Based upon what FACTS??????
"EARNINGS"? "Losing" or "Revenue Report" more accurate. No "earnings" to be reported for many years.
It's Fidelity----
Swisher Hygiene Inc. has agreed to sell more than 9.8 million shares of its common stock for $75.9 million to certain funds of a global financial institution. Swisher didn’t disclose the institution’s name.
The company intends to use the proceeds from the private placement to fund acquisitions, as well as for working-capital purposes.
Read more: Swisher Hygiene to sell 9.8M shares | Charlotte Business Journal
All of these firms that have invested in ECL and SWSH know what they are doing. It is much easier to float rumors, innuendo and half truths when you are trying to make money on a stock's decline. That's what we've seen the past couple of weeks. At some point these folks are going to have to cover their positions and if they are as smart as they seem to think they are, my guess is they are thinking about doing this before the open on Tuesday. SWSH will generate solid EBITDA this year relative to its revenue base and surprise more than a few folks to the upside.
earnings this monday the 16th might not be what the shorts are looking for
But ECL is profitable - big difference.
Fidelity Investments purchased 13.87 Millions shares of SWSH and Wells Fargo has committed $100M to SWSH--
ECL --SWSH largest competitor:
ECL institutional owners of record:
Vanguard owns 9.4M Shares
State Street 9.2M
Fidelity Investments-6.5M
Blackrock 5.5M
Bill and Melinda Gates 4.2M
Wells Fargo 3.5M
Goldman Sacks 3.9M
Are all these investment firms wrong about this industry?
FYI--
Where does one obtain such insight as to their investing parameters?
Fidelity Investments and Wells Fargo-- are they not accountable to the shareholders and the public investor?
Just FYI, WFG and Fidelity own SWSH as part of a fund that buys a ton of stock with minimal due diligence. I'm not saying this stock isn't worth something, but I wouldn't count on "big names" as re-assurance.
Broke through $6.08 support level. Next Support $1.65.
http://www.stockta.com/cgi-bin/analysis.pl?symb=SWSH&num1=1&cobrand=&mode=stock
For those of you who care to contact investor relations the info is as follows:
704-602-7116
Amy Simpson
asimpson@swisherhygiene.com
Vice President Communications
Swisher Hygiene
4725 Piedmont Row Drive
Suite 400
Charlotte, NC 28210
Phone (704) 602-7116
Fax (704) 602-7952
Instead of discussing the stock with the short sellers why not contact investor relations with your concerns.
I don't see much promise in this industry personally. It is mature, non-proprietary, nothing "best-in-class" about SWSH's acquisitions etc. SWSH is simply trying to build a conglomerate through acquisitions, seemingly funded by the acquisitions themselves (50% cash, 50% stock).
As the revenues increase, SWSH will get more publicity and the stock will eventually go up (and down) rapidly (both ways) from time to time.
In the end, it will become increasingly difficult to win by touting the ever increasing earnings without also producing income ...
Ecolab and Cintas are at least profitable, but the PE multiples seem high (Ecolab 23 and Cintas 21), but at least they are stable business, profit and share price wise.
And it will continue to fall short term (3 months) as a result.
short term
what do you think about industry competition (ex. Ecolab, Cintas) share prices.....$50 range, $30 range?? do you disagree this a strong industry especially pertaining to the healthcare sector??
GL longs
"this stock has been targeted by bad press recently" Bingo ! And it will continue to fall short term (3 months) as a result.
Once $5.99 support is broken, the support levels drop quickly to $1.65 and $1.19 ...
www.stockta.com/cgi-bin/analysis.pl?symb=SWSH&num1=2&cobrand=&mode=stock
Look how the Shorts have piled on:
www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=SWSH&selected=SWSH
Wells Fargo & Fidelity are probably so well hedged by now that they may make more money if it falls.
realistic
do you think wells fargo or fidelity would be involved if they did not believe this was a strong long pick?
will be turbulent until larger and greater aquisitions made...
unfortunately this stock has been targeted by bad press recently
“This is not a particularly great business,” the Value Investors Club emphasized last month. “There is no clear business logic or synergy to buying small, local bathroom cleaners in our view …"
“As this stock gets more investor attention and people realize what is really going on here,” the report concluded, “it will likely end up in the toilet well before Huizenga and Berrard can dump their shares.”
thestreetsweeper.org/undersurveillance/Could_Swisher_Hygiene_Go_Down_the_Toilet____Again_
wow ... hadn't read that part at the end ... pretty rough on SWSH. No wonder its taking it hard.
I have to agree..... Ameritrade does not hsve a single share available to be shorted..... Yet our short position has grown significantly!!!!!
With all of the naked shorting that still goes on these days, I'm not sure there is much you can do.
moving shares to cash account or type 1 by longer term investors will preciptate short covering watch for the buy in coming you cant short what you can't borrow
Look how the shorts have piled on!
It will be interesting to see how May 1 short Interest looks.
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
4/15/2011 5,307,430 2,021,059 2.626064
3/31/2011 4,906,570 392,471 12.501739
3/15/2011 4,418,798 312,535 14.138570
2/28/2011 3,964,662 1,167,572 3.395647
2/15/2011 1,865,163 649,392 2.872168
Read more: http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=swsh&selected=SWSH#ixzz1Lb1EiSiB
Like I said - brief rally on $200M revenues announcement, but they still will have NO profits in 2011 or 2012.
I don't think you missed any buying opportunity. It will be back down below yesterday's price int he next week. The StreetSweeper's targets don;t recover that quickly.
Look at ESPH (Jun 25, 2010), LLEN (Jan 11, 2011) & NOG (now), which Melissa targetted.
I was on the Long side with ESPH and LLEN, but now simply buy PUTs on whatever she attacks ... NOG and SWSH currently.
Guessed wrong
I bought Coolbrands at $2.42 after the reverse merger with SWI.TO. I sold half at $9.30 and the rest at $7.98 this week. I use trailing stop losses as a precaution. I wish I had sold in the $11 range, but I wouldn't say I "guessed wrong". I do not currently own SWSH, but it has made me a lot of money. I think there is still money to be made between now and October 2012. I missed a buying opportunity yesterday morning.
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