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Re: chaarles post# 27

Tuesday, 08/20/2013 8:47:21 AM

Tuesday, August 20, 2013 8:47:21 AM

Post# of 36
From the last news headline:

As part of its ongoing Chapter 11 process, Orchard today identified nine additional stores that will begin store closing sales on August 15, 2013. In addition to the 17 stores that are being closed as part of the Chapter 11 process, two stores have closed in the normal course of business since June 17, 2013. The Company expects to continue operating its remaining 72 stores at the completion of the sale process.



But as the CEO said:

“Lowe’s submitted a bid at the start of the sale process which we believe reflects their understanding of our value proposition, our unique market opportunity and how our businesses complement one another."



It means he agrees on their bid.

I do not know about only 60 and the leftover shops to be sold separately. It is not in the news headline. But even if you assume that and the best price you could get for the 12 extra shops would be an equivalent of Lowe's bid, it means 205 M$ divided by 60 shops is $ 3.4M worth per shop. For 12 separate shops, this would be $ 41M (a higher price for the remaining 12 shops would not make any sense).

$ 205M plus $ 41M makes $ 246M, still way short to give the prefs even a penny per share. The outcome is the same. No value in this stock.

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