I think Valueact converted their shares to Preferred.
Yes, you are correct. That makes me feel much better. What else could account for current price action? L Brands sure isn't helping. I wish I knew this company better because it does seem like a no-brainer here.
Lots of good point. Just a few comments;
Some retailers will obviously go under. Others will restructure, and if they wan't to have a fighting chance they'll probably need a solution ala ADS'.
L Brands is interesting, because while Victorias Secret is struggling, they have a gem in bath and body works.
Thus L Brands can probably do okay in a slimmed down version (they've been slow to close down locations), and their debt load is high, so possibly they could restructure, and thus still be a client, albeit smaller.
While Amazon and the death of many malls are hurting many of their traditionel clients, I could see their service becoming increasingly necessary for those that wan't to have a fighting chance. Whether 30 pct. ROE is here to stay is to be seen, but I haven't seen anything to suggest otherwise (apart from price action).
That anecdote from Floor & Decor can be read very differently whether one is a bull or bear, but it obviously adds value to the retailer.
Management has obviously been too optimistic before, but they've been guiding double digit receivables grow recently (grew 16 pct. in July), while it probably trades as if it's no growth/melting icecube type of thingy.
Boy I have taken a beating, but while I was definatley early I haven't seen anything that suggests the company is broken.
Agree that Valueact and Greenberg selling is a negative (while Valueact swapped some of its stake to preferred they did sell a large chunk large fall which spooked the market). Those guys are obviously way smarter than I, and I might be a patsy for relying too much on management (even though I think they were actually quiet right on some of the longer term drivers - like losses falling after insourcing collections etc. etc.).
