TheLion.com - Forum

From: NewTraderLearn (Rep: 21) reply to PornStarTrader

Date: 05/10/2012 12:58

Forum: Coldwater Creek - Msg #709

Thread #673400374 (Rec: 0)

Re:Operating Income or Loss (11,107) (28,404) (27,153) (29,496) There losing money stock is trading below book value just a tad where it should be fairly priced because the company is after all losing money... even at a 11 Million Dollars a qrt divide that by 90 days and CWTR is losing around 122k dollars a day everyday... cant say that the stock is a sell here because it is trading under book value i think its fairly valued here but if the losses continue then the stock price could continue to decline to account for the losses...Why should anyone pay a premium for a company that is continues to lose millions of dollars Nice find PORN on 2 equity firm eyes... Bouncing at .93

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Reply to PornStarTrader - Msg #2268759 - 05/10/2012 12:53

Re: Nice find PORN on 2 equity firm eyes... Bouncing at .93

The valuation is ridiculously low on CWTR now. Here is how to find what metric the Private Equity firms might use to value it. If using the same metrics that Talbots buyout offer taking into acount TLB huge debt and market cap they are being offered a market cap buyout price about at about 30% of sales.
That would value CWTR at $2.20 area. Down here is a absolute steal I believe.
I think CEO Dennis Pence would want a decent offer. But he is old enough he may want to walk away from his baby and sell the company. The risk/reward is excellent at this price to own the stock

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