It is only undervalued if you think that their business can be turned around. They have yet to stabilize their declining sales and have no strategic plan in place to do so. Ever since Clinton Group became actively involved with Wet Seal, the company has been in free fall. They forced the company to buy back shares of its stock a few years ago which left them in a financially vulnerable position. The newly announced "rights offering" and "private placement" will help infuse cash into the business, but at the cost of dilution to current shareholders.
To top it off, after its recent debacle, John Goodman will receive severance pay of over $800,000. He was hand picked by Clinton Group, so their greater involvement by now having a seat on the Board of Directors does not instill me with any confidence.
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