Most retail stores lose money until late November,,,
and then, during the Christmas 'Season' , make up for
the first 10 months of constant losses, and wind up
showing a 12-month profit of 2-5% of Gross Sales.
But, Not swvc. Here's the proof, from the 10-K :
" The increase in sales was the result of the acquisition of Hackett’s, which took place on NOVEMBER 7, 2007. These additional Hackett’s sales helped offset lowered sales at the now ceased WiseBuys division. These lower sales resulted from management’s decision to significantly lower WiseBuys’ inventory level during late fiscal 2006 and early fiscal 2007 in anticipation of the Hackett’s acquisition. "
Which means : swvc owned the Hackers outlets,
ONLY DURING THE CHRISTMAS SEASON, AND STILL LOST MONEY.
Retail stores have their largest cash losses in Q1, And Q2.
We believe that swvc will be out of cash during Q3, at the
latest. Even the 10-K admitted that swvc only has enough cash
to last 6-12 months, [which means, swvc will be broke by
July, unless swvc dilutes + dumps new common 'shares' ,
faster than ever]. And, swvc already proved that they even
lose money in the very best part of Q4. So, Q3 + Q4 are even
sure to be cash-burners.
Then, there's those swvc $18 Million 'assets' . What a joke.
$8 Million is Inventory, purchased with borrowed cash, at
10-12% Interest. $5+ Million is "Goodwill" , which is worse
than worthless. It is just the Auditor's way of 'accounting'
for the FACT that swvc OVERPAID BY $5+ MILLION TO 'BUY' THE
MONEY-LOSING HACKERS. And, All But 3 of the swvc outlet shops
are leased. The 3 that are 'owned' are mortgaged, and may
actually be 'worth' less than the mortgage, since Real Estate
'values' are crashing, especially in 'depressed regions' ,
like, Everywhere where swvc has property. Then there's that
SVC 'Fund of Cash' . Just read the 10-K. swvc liquidated most
of it, And Spent All Of The Cash, in 2007Q4.
And, if the above is not bad enough, it now appears that all
of the commoners, combined, own less than 10% of all of swvc's
votes + assets, And, they still get paid Last, when swvc goes
BK, or gets 'sold' to anyone [probably another group of
'friends + family' ]. We always knew that the CEO owned the
Super-Toxies, that ALWAYS OWN AN UNDILUTABLE 80% OF ALL OF
SWVC'S VOTES + ASSETS, NO MATTER HOW MUCH MORE IT IS EVER
DILUTED. But, now, for those who actually read the 10-K, they
will find that another 10% of the same Never-Dilutable-Stuff
is owned by the CEO's best friends + family.
Here's that proof :
Name of Beneficial Owner Amount & Nature of Ownership Percent of Class of Stock Voting Percent
Thomas W. Scozzafava 100,000 Series E Preferred Stock 100.0% 80.0%
Dierdre K. Scozzafava 442,150 Series C Preferred Stock 30.3% 3.1%
Frederick E. Scozzafava 398,100 Series C Preferred Stock 27.3% 2.8%
Silver Hamilton, LLC 186,290 Series C Preferred Stock 12.8% 1.3%
William M. Scozzafava 140,000 Series C Preferred Stock 9.6% 1.0%
Joseph G. LaChausse 102,500 Series C Preferred Stock 7.0% 0.7%
With all of this Super-Toxic Debt + UNdilutables, permanently
lined up AHEAD OF ALL COMMON SHARES, and able to vote
themselves as much more as they ever want, any time the 80%
UNDILUTABLE VOTE OWNER says Go, and swvc's outlets just
about guaranteed to always burn cash, No Real Investor would
ever buy 1 share of swvc. And, all of this, while swvc's
outlets are about to suffer from increased Internet Shopping,
at much lower cost competitors. Some of which may even open
a Real Department Store, in the middle of swvc's tiny, and
permanently depressed 'region'.
As for 'expansion' and/or 'acquisitions'. Get real. swvc has
no spare cash. If they 'acquire' anything, it will have to be
another permanent money-loser, And, swvc will also have to
'acquire' their Toxic Debts, And, sign up for even more.
Exactly the same way that the CEO 'acquired' the Super-Toxic
shell, and everything else that has already been stuffed in.
extra, Sincerely. But, just IOO, as always.
AI
