Cashmoney

Great Atlantic & Pacific Tea Company: Perplexing Freefall

GAP is not a compelling long story at all! Management is unfocused and lacks depth. The balance sheet is one of the worst I have seen in my banking years...why would they ever issue high-yield/bridges to fund warrant settlements when the company is not even cash flow positive. The name of the game in food retail is pumping capex into keeping the brand fresh...GAP doesn't even spend what the expense in depreciation. They sold the most profitable assets, made an acquisition of another poor-quality brand, and I would suspect they won't have liquidity to fund operations too far into the future with out some equity investment...my suggestion for you believers would be to actually read the footnotes.