I have been to their store recently and while the traffic is lower, their selection is good and I believe it will pick up once real estate market improves. There are no insider buys this year surprisingly. Do you think it is due to the "strategic evaluation" that they are working on which may trigger insider trading laws? Otherwise, this seems like a low-risk winner.
It is true if a transaction in imminent, insiders are not allowed to buy, unless they have a preexisting program. It is also true that TCS would need to do a reverse split if they don't go private. They did announce they were shopping around, but they have at least four months left to make up their mind.
Total non current liabilities is huge, but most of that is long term leases. As long as TCS is a going concern, that can bee looked through. Long term debt is $174 million, which is large compared to market cap, but reasonable compared to gross profit of $488 million in the trailing twelve months during a consumer cyclical bear market. Interest expense is $20 million last twelve moths, meanwhile growth capex was $39 million. The debt is there, but it's not overly burdensome. Operating cash flow was $46 million during tough times. They can probably hang on until the cycle turns in their favor.
I have been to their store recently and while the traffic is lower, their selection is good and I believe it will pick up once real estate market improves. There are no insider buys this year surprisingly. Do you think it is due to the "strategic evaluation" that they are working on which may trigger insider trading laws? Otherwise, this seems like a low-risk winner.
It is true if a transaction in imminent, insiders are not allowed to buy, unless they have a preexisting program. It is also true that TCS would need to do a reverse split if they don't go private. They did announce they were shopping around, but they have at least four months left to make up their mind.
what about their debt? isn't it too high? I think that is why market is valuing them so low
Total non current liabilities is huge, but most of that is long term leases. As long as TCS is a going concern, that can bee looked through. Long term debt is $174 million, which is large compared to market cap, but reasonable compared to gross profit of $488 million in the trailing twelve months during a consumer cyclical bear market. Interest expense is $20 million last twelve moths, meanwhile growth capex was $39 million. The debt is there, but it's not overly burdensome. Operating cash flow was $46 million during tough times. They can probably hang on until the cycle turns in their favor.