Ya fallback wouldn't surprise me unless the company feels at liberty to start buying back now that the report is out of the way. Or some fund suddenly decides to 'discover' it as a value investment. I feel pretty comfortable we are building higher-priced downside levels with time which is what I like even if upside is so-so, at least in current market conditions.
I get a little over 23 cents EPS this Q if we normalize tax rate to 40% and take out the one time charges from bad debt expense and nonpayment from renter. If any of that gets recouped we could see 1 time gains help the other way of course.
I am assuming the little verbage Joffe gave about 2011 expecting higher revs and net income YOY would NOT include buyback shares potential boost. They have yet to start buy back in the market apparently. And customers continue to do well with the macrotrends still in place (aging fleet, tuff economy so older cars likely kept on road longer and fixed instaed of replaced).
Then again, I don't rely on putting much specific weight in mangement teams giving annual guidance definitely including this team.
Considering the large sizes of accts payable, inventories, etc I still think we are a couple Qs off from seeing more cash put on the balance sheet. $500K per Q will go toward term loan repayments but beyond that could be wiggling back and forth.
In the current Q, looks like Sanford and Son would be proud.
LT inventory up $1.6 mill roughly. $500K went to pay down term loan. That's $2.1 mill of the $2.9 mill made.
Thinking we'll see lumps and bumps but the value proposition and easy understandability of the biz and what drives it is still quite apparent to me so I'll keep this as a core holding occassionally flipping a few around that probably.
OK that was pretty cheesy, even KiK is rolling his eyes.
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
