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Mike Arnold, CFA

 
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Latest  |  Highest rated
  • Pilgrim Foods Offers A Rich Premium For Hillshire Brands [View article]
    wow, that was quick!
    May 29, 2014. 09:53 AM | Likes Like |Link to Comment
  • Identiv Continues Turnaround, Verizon Partnership Provides Optionality [View article]
    Rough day. R/S can have that effect. I expect a lot of volatility, but like what I see in terms of partnerships, cost cutting, etc.
    May 28, 2014. 03:37 PM | Likes Like |Link to Comment
  • Pilgrim Foods Offers A Rich Premium For Hillshire Brands [View article]
    Congrats, that is a great offer. Hopefully you get your $50+ offer. Looks like others think a bump might be coming giving the price action yesterday. Curious who you think might bump the offer price?
    May 28, 2014. 09:28 AM | Likes Like |Link to Comment
  • Vitacost Remains A Go-Private Candidate [View article]
    Not sure I agree. To your balance sheet question: no debt has been issued, indeed, some equity was issued at $7.04 in 2012 to build out fulfillment centers to handle sales growth.

    From 2012 10-K:

    "On February 16, 2012, the Company entered into a Purchase Agreement (the “Purchase Agreement”) by and among Vitacost, JHH Capital, LLC, an entity affiliated with Jeffrey Horowitz, our Chief Executive Officer (“JHH”), Great Hill Equity Partners III, L.P. (“Great Hill III”), Great Hill Equity Partners IV, L.P. (“Great Hill IV”), Great Hill Investors, LLC (“Great Hill Investors”), Freshford Partners, LP (“Freshford Partners”), Freshford Master Fund, Ltd (“Freshford Master Fund”) and Baron Small Cap Fund (“Baron” and, together with JHH, Great Hill III, Great Hill IV, Great Hill Investors, Freshford Partners, Freshford Master Fund, collectively, the “Investors”) pursuant to which the Investors purchased, and Vitacost sold, an aggregate of 4.9 million shares of the Company’s common stock at a purchase price of $7.04 per share, and warrants to purchase an aggregate of 1.7 million shares of the Company’s common stock for an aggregate purchase price of $34.8 million. The warrants have an exercise price of $7.04 per share and a term of four years. The net proceeds of $33.6 million, after the deduction of fees of $1.2 million incurred in connection with the transaction, were allocated between common stock and warrants based on their relative fair values as of the purchase date. A portion of the proceeds from the financing are being used to expand and optimize our distribution network. We spent $4.5 million on the expansion and upgrade of our fulfillment centers in 2012 and expect additional investments in 2013. In addition, an estimated $15.0 million may be used to invest in and stock a third distribution center to support our future sales growth. We are evaluating an investment in a new facility in late 2013 or beyond. We intend to use the remaining proceeds from the financing for general operations."
    May 27, 2014. 09:48 PM | Likes Like |Link to Comment
  • Identiv Continues Turnaround, Verizon Partnership Provides Optionality [View article]
    From $INVE twitter feed: http://bit.ly/1whPlRx

    Looks like Apple could be putting NFC tech in next iPhone.
    May 27, 2014. 08:19 PM | Likes Like |Link to Comment
  • Vitacost Remains A Go-Private Candidate [View article]
    Interesting, although I usually don't put much stock in those glassdoor reports. Good to know, however.
    May 27, 2014. 11:28 AM | Likes Like |Link to Comment
  • Why Vestas Is Undervalued [View article]
    Thanks, Strike. No plans to update at this point. I'm out of the stock, but maybe I should revisit. I look out at the Vestas North American HQ everyday from my apartment.
    May 27, 2014. 11:06 AM | Likes Like |Link to Comment
  • Identiv Continues Turnaround, Verizon Partnership Provides Optionality [View article]
    NASDAQ listing restored... New contract wins, continued restructuring. Will take some time.
    May 27, 2014. 10:39 AM | Likes Like |Link to Comment
  • For Dream, Lengthen Your Time Horizon [View article]
    The best way to own the units that trade in Toronto thru Interactive Brokers et. al. It's more liquid there.
    May 27, 2014. 10:28 AM | Likes Like |Link to Comment
  • Identiv Continues Turnaround, Verizon Partnership Provides Optionality [View article]
    I don't think it really matters. The market cap is what it is either way. The float will be more tightly wound with the 1:10.
    May 23, 2014. 10:34 AM | Likes Like |Link to Comment
  • Identiv Continues Turnaround, Verizon Partnership Provides Optionality [View article]
    reverse/split approved 1:10. About 8mm shares outstanding going forward.

    http://seekingalpha.co...
    May 23, 2014. 02:43 AM | Likes Like |Link to Comment
  • Should Rosetta Stone Be Taken Private? [View article]
    A PE shop could buy it and carve out the fat in pretty short order. Again, I have no knowledge that RST is in play, but management is buying back shares and M&A is happening at competitors. Historically there is innovation, then consolidation in the education space. Seems like a Scholastic Corp would be a logical buyer too considering the reading software, etc. that Rosetta Stone now offers. Off top of my head, I can't give you numbers for the acquisitions that $RST purchased at. But the buyouts were relative small, in the $10 - $30 million range.
    May 23, 2014. 02:33 AM | 1 Like Like |Link to Comment
  • Should Rosetta Stone Be Taken Private? [View article]
    The legacy CD-ROM biz is holding this company back. They need to move to SaaS and squeeze out marketing spend. 80%+ gross margins and still showing losses? I certainly understand why the market is suspect. I think the evolving business model is very enticing and subscription renewals will cost little if any incremental marketing spend. A PE shop could come in and clean things up in short order, then IPO this thing at a high valuation showing only the SaaS revenue streams. Could probably get 5x sales for their trouble.
    May 23, 2014. 02:24 AM | 1 Like Like |Link to Comment
  • Vitacost Remains A Go-Private Candidate [View article]
    I have not spoken with Mr. Gorsek. I understand there were some questionable accounting practices back in the day which halted the stock for 6 months and may have led to an ouster?

    I think this business needs to do $500mm in sales to achieve scale and show GAAP profits (based on my model). Could get there in 2015. Doubt they remain standalone for that to happen. Every time I turn on CNBC, I hear CEOs from retailers who speak about "omni-sales channel." They get it, if they don't have a presence online they are going to get crushed. Vitacost makes sense as an acquisition for lots of businesses.
    May 23, 2014. 02:20 AM | 1 Like Like |Link to Comment
  • For Dream, Lengthen Your Time Horizon [View article]
    Yeah, that is the risk -- but I really can't see how someone gets hurt over the long run at a $1bb valuation for this business and its asset base. Will be interesting to see how it turns out.
    May 23, 2014. 02:09 AM | Likes Like |Link to Comment
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