I agree with you that retail does not do the math,
Post# of 43064
Posted On: 06/13/2014 2:38:54 PM
I agree with you that retail does not do the math, but perhaps your reasoning is different than mine. You seem to be saying that the filings (financials) should explain where they are now or something.
Well not only that, but also where they are headed. it is pretty hard to turn a freighter around quickly, and JBI is like that. They can do all the cost-cutting they want, it won't make a difference.
I know that the counter-argument is going to be that processor sales will change everything, so let's go back a few years to when the company still had some money in the bank, and was tinkerfarting. Fuel sales was the business plan, amongst other things.
The financial statements spelled doom on 2 fronts; poor profitability, and high SG&A.
Myself and TBG attempted to bring retail's attention to the SG&A 6 months ago. It has been upwards of 2 Million/ quarter for years, with very little or no explanation provided. I just looked at the K, and the cost cutting and employee reductions solved nothing in this area. Made very little difference. Various ideas have been proposed, that SG&A is non-cash, etc, but the one thing that really sands out is retail's lack of understanding of the line item. It seemed to be assumed that this kid of SG&A was just normal. It is not. Not by far. It is a line item to be attacked and pared back a the first sign of trouble.
The profitability also has been poor. In the last quarter of full operations (Q3 2013) they made a whopping 15k on about 300k of sales for P2O. Not good enough. Nowhere near. That Gross Margin has to cover all of the SG&A, the R&D, plus make a decent return.
So why then, when this was evident 3 or 4 years ago, did Longs not Sell back then? If you had done that, you would be where you are now, with almost all of your investment lost on paper.
Now again, forgetting about the new business plan... that is very recent. For years JBI promised great things and did not deliver. Did not even come close...
Well not only that, but also where they are headed. it is pretty hard to turn a freighter around quickly, and JBI is like that. They can do all the cost-cutting they want, it won't make a difference.
I know that the counter-argument is going to be that processor sales will change everything, so let's go back a few years to when the company still had some money in the bank, and was tinkerfarting. Fuel sales was the business plan, amongst other things.
The financial statements spelled doom on 2 fronts; poor profitability, and high SG&A.
Myself and TBG attempted to bring retail's attention to the SG&A 6 months ago. It has been upwards of 2 Million/ quarter for years, with very little or no explanation provided. I just looked at the K, and the cost cutting and employee reductions solved nothing in this area. Made very little difference. Various ideas have been proposed, that SG&A is non-cash, etc, but the one thing that really sands out is retail's lack of understanding of the line item. It seemed to be assumed that this kid of SG&A was just normal. It is not. Not by far. It is a line item to be attacked and pared back a the first sign of trouble.
The profitability also has been poor. In the last quarter of full operations (Q3 2013) they made a whopping 15k on about 300k of sales for P2O. Not good enough. Nowhere near. That Gross Margin has to cover all of the SG&A, the R&D, plus make a decent return.
So why then, when this was evident 3 or 4 years ago, did Longs not Sell back then? If you had done that, you would be where you are now, with almost all of your investment lost on paper.
Now again, forgetting about the new business plan... that is very recent. For years JBI promised great things and did not deliver. Did not even come close...
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