Melissa Davis, senior editor of The Street Sweeper, poses with celebrity stock picker Jim Cramer after a recent taping of his "Mad Money" television show. Davis worked as an investigative reporter for TheStreet.com, where Cramer serves as chairman, before assuming her current role at The Street Sweeper.
Sportsmanís Warehouse: Aiming Too High for Its Own Good?
by Melissa Davis, 12/24/2014 9:39:20 AM
Sportsman’s Warehouse (Nasdaq: SPWH) seems almost determined to shoot itself in the foot again.
Under the gun to hit ambitious growth targets that look increasingly difficult to achieve, SPWH has tried to overcome a persistent decline in same-store sales by rapidly building new stores on credit after following a similar plan straight into bankruptcy. This time, SPWH faces even stiffer competition in a market hurt by plunging sales of guns and ammunition – a business that accounts for roughly half of its revenue – too, as big-name players like Cabela’s (NYSE: CAB) and Bass Pro Shops race to open new locations of their own. Willing to settle for the leftover scraps that likely remain untouched for a reason, SPWH has decided to focus more heavily on smaller markets that rival chains might understandably choose to avoid.
After all, SPWH has started hunting for new business in some rather dinky towns.
SPWH intends to open five of the eight new stores that it has pledged to build during its next fiscal year in towns with a combined population of barely 70,000 residents. In fact (as illustrated in the section that follows), three of those new locations will serve entire counties that look either too small or too poor to support one of the company’s big-box stores.
With a measly $1.7 million in its bank account and a staggering $219.3 million worth debt on its balance sheet, SPWH obviously cannot afford to start blowing a bunch of precious cash on new stores that make little business sense.
Freshpet: An Overvalued, Bad, Bad Dog
by Sonya Colberg, Senior Investigative Reporter, 12/11/2014 9:48:32 AM
By Sonya Colberg, TheStreetSweeper Senior Investigative Reporter
Freshpet loses money as it installs and maintains refrigerators in stores to display its natural, slightly cooked dog food.
The New Jersey company released numbers late Tuesday showing its $0.14 loss exceeded analysts’ $0.12 expectations on revenue of $22.5 million. Consequently the stock dropped, followed by a jump to about $19.
But we’ve pawed through Freshpet’s numbers and were astonished to determine how many dollars the company makes per fridge:
About $19.57 per day.
That’s less than a $27.49 tube of Freshpet Vital.
So a company that the market says is worth over $600 million sells the daily equivalent of one meat tube per fridge.
And, according to the conference call, Freshpet’s expecting that figure to reach only about $21 to $22 at the end of 2015.
So it appears this money-losing company is all but certain to continue losing money.
At the core of that issue, TheStreetSweeper has dug up three overriding challenges facing this 10-year-old Secaucus, N.J. company.
And we believe the overall challenges make this stock worth less than one-third its current price.
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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