$SQBG Sequential Brands Group (NASDAQ: SQBG) to
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Posted On: 05/05/2017 3:00:05 PM
$SQBG Sequential Brands Group (NASDAQ: SQBG) to turn around for a couple of quarters now and am starting to feeling like I have a front row seat to the play “Waiting For Godot” (where two characters wait for the arrival of someone named Godot who never arrives).
However, I am going to give management another quarter or two to integrate the four significant acquisitions they did in 2015 that basically doubled their potential sales footprint.
The company spent most of 2016 bringing new brands into their business model and getting them into more sales channels; They brought Martha Stewart brands to Staples in the United States, Hudson’s Bay in Canada and on Alibaba in China.
Due to integration expenses, profits declined in 2016 from 2015 due to this integration. However, growth should return in 2017. The company should see revenue increasing in the high single-digits and post earnings of between 50 to 60 cents a share. Even at the low end of that profit range, the shares seem mighty cheap at just over $4.00.
However, I am going to give management another quarter or two to integrate the four significant acquisitions they did in 2015 that basically doubled their potential sales footprint.
The company spent most of 2016 bringing new brands into their business model and getting them into more sales channels; They brought Martha Stewart brands to Staples in the United States, Hudson’s Bay in Canada and on Alibaba in China.
Due to integration expenses, profits declined in 2016 from 2015 due to this integration. However, growth should return in 2017. The company should see revenue increasing in the high single-digits and post earnings of between 50 to 60 cents a share. Even at the low end of that profit range, the shares seem mighty cheap at just over $4.00.
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