COPIED FROM ANOTHER WEBSITE...thought I'd share
Why AROPQ is a GREAT investment…
I have been working in the apparel industry as a manufacturer for 28 years. I have invested in MANY retail stocks, as well as other manufacturers. I have seen some very big businesses file for BK and not only survive through DIP financing, but are now doing well. Kmart filed twice, Macy’s, and others.
The DIP financing is the golden ticket. The financier would NOT have approved the loan had their DD shown any red flags. Countless hours are spent going through financials, and the immediate result is the closure of 150 stores that put up bad numbers. It is these locations that are primarily responsible for the 1Q losses. These stores are now out of the picture.
Please note that the remaining profitable stores are loaded now with FREE MERCHANDISE. Under BK protection, AROPQ does not have to pay their bills to the makers of their products. And since AROPQ is in DIP, the makers will continue to ship product to AROPQ as payment is now guaranteed on the new goods. It will give these makers an opportunity to make up for their losses.
My company has taken losses many times over the year due to BK, and not only did we not get paid for goods shipped, but we had to return payments already made going back 120 days.
As for the shares being cancelled, it will never happen. That is a PR nightmare for a company looking to improve its image.
Back to school sales are coming, and we are looking at 100% profit on goods not paid for.
When AROPQ emerges from BK, this goes to $3-$5 share.
Holding every share until CA and NV go recreational!
AI
