Relying on strong guidance yet again... SMH (shaking my head).
Anyhow, I wish you well with it. To me it is a red flag (given mngmnt proven track record) for the company to offer up 12 months 'adjusted' earning guidance yet skip the obvious quarterly earnings guidance that should be basically in front of their face since there are only about 3 weeks left in the Q (unless I missed them giving that guidance somewhere). I'm guessing they're going to fall back into the 'second half will be stronger' rut after Q1.
As bad as the balance sheet is starting to look, peeps need to pay more attention to the quality of their real (GAAP) earnings and cashflows, not the continued 'adjusted' guidance they give IMO especially with increased borrowings and increasing interest rates/costs.
SGA did not come down near where I was hoping (always seem to be added one time expenses in there). So it was easy for me to make the call to bail on the small trade.
Even the expanded GMs weren't enough for them to be break even the last 2 quarters operationally after interest costs.
Looked like interest expense was up sequentially and YOY substantially too.
Good luck going forward, I still don't see the attraction but maybe they will finally start muddling their way out of the quagmire of the last several quarters.
At least there's a healthy short position so maybe they'll get squeezed a bit.
All IMO only. Good luck.
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
