Friday, October 20, 2006

Remy Cointreau Pours A Stiff One

Remy Cointreau (REMYF) reported growth in sales of approximately 1.3% organic and 4.8% from their own brands. (Remy's wording) In particular the Champagne Department has done exceedingly well. The press release glossed over the overall decline in partner sales, which they attributed to discontinued distribution contracts. Absolutely no explanation as to what may be expected from this segment in the future and if there are more contracts that will be discontinued.

Thursday, October 19, 2006

Mobility Electronics Amends Shareholders Rights

Mobility Electronics, Inc. (Nasdaq:MOBE) recently filed an 8K material change notice, which allows Adage Capital Partners GP LLC to increase their ownership from 20% to 25% without triggering the shareholders rights program. The amendment was made at the request of Adage. I mentioned this company in an Oct 6, 2006 posting. Essentially I was critical about a number of lost sales and customers. So the question is why does Adage want more? Why should the shareholder rights plan be amended to their benefit? Is this a creeping takeover? Is the company being driven into the ditch purposefully? SEC and securities class action lawyers are you listening?

Wednesday, October 18, 2006

Alphatec Sneaks In New SVP Sales & Marketing

Alphatec Holdings (Nasdaq:ATEC) has recently hired a new SVP of Sales and Marketing. The 8K was filed Oct 18. The employment agreement is dated Oct 12. That to me is a week. The new hire Mr. M Ross Simmonds will be receiving an annual salary of $315,000 plus generous cash bonuses. As well stock options on 125,000 shares vesting equally over five years with a change of control clause is included.

I mentioned Alphatec in my Weekend Follies of Oct 7 because they issued late news on another matter when investors are not looking. The company claims to have missed their sales numbers so this guy should be important. Just two things: Firstly no press release was issued just a backdoor 8K. Secondly no background information on this guy. Should have some noise with the marketing and sales guy! This is a key position investors need to feel comfortable with this individual.

Company is much too secretive.

A&P Liquidity Worsens

The Great Atlantic and Pacific Tea Company (GAP) commonly know as A&P announced results, which continue to worsen. If this company is not on the critical care list it would be an excellent candidate. Management continues to talk about strategies to increase sales and reduce costs as well as why they look different now. But look at the cash position. It has dropped from $230 million on Feb 25, 2006 to $83 million Sep 9, 2006. Working Capital ratio has dropped from 1.98 on Feb 25 to 1.51 on Sep 9, 2006. There is no other conclusion to arrive at when cash is dropping.

Tuesday, October 17, 2006

Callaway Stuck In Rough

Callaway Golf Company ELY announced atrocious preliminary results for the third quarter. While the press release covers some of the ins and outs this key quote stands out.
Lower in-store traffic at key golf retailers during the June through September season. This resulted in lower retail sales and a related decrease in wholesale re-orders for the Company. The decline is consistent with recent national retail trends.”
Analyze and strategize all you want but when the customer does not show up you have a very big problem. Management needs to make comments in light of reduced traffic and not big picture product announcements.

Monday, October 16, 2006

Weekend Follies Oct 14-15

The following companies release information at oddball hours over the weekend when investors are typically not looking at their screens. Basically they are sneaking news out and hoping to call it disclosure. The culprits are:

Rotonics Manufacturing RNI, First Franklin FFHS with news of reduced earnings, MSGI MSGI and Anworth Mortgage Asset ANH both with bad news they wish to diminish.