Geeknet (GKNT) reports 4Q'11 results today (02012.02.14) prior to the market opening. In a nutshell, the GDT::Portfolio needs geeks to buy crap from ThinkGeek and I don't like this dependency. SourceForge was a great creation and I've been a happy Slashdot user for over a decade, but I'm not sure Geeknet will profitize world geekification. I've been hoping Geeknet would be taken private, but... borrowing from the old rock band Styx... if only I could "find myself a crystal ball." GKNT closed yesterday (02012.02.13) at $17.93. 52-week range: $14.82 - $30.50
How about this... the report came out while I was typing this.
Geek.net::Geeknet Announces Fourth Quarter and Full Year 2011 Financial Results
I read the press release and it's a crap shoot as to how the market will respond.
Some notes...
cash per share: $5.84 (with $0 debt)
PSR (price sales ratio): 1.05 (based upon $119,466,00 yearly revenues; 6,319,000 GKNT shares; $17.93 share price)
GKNT is thin with an approximate float is 4,750,000 shares.
I'll update this posting when the market closes today (02012.02.14).
Tough day for GKNT. Previous close on 02012.02.13 was $17.93. Geeknet reported 4Q'11 results prior to market opening on 02012.02.14. GKNT gaps open at $19.40 and quickly hits an intra-day high of $19.75. GKNT then falls to an intra-day low of $16 before closing at $16.50. Volume: 42,300 vs. trailing-3-month avg. of 16,186. 52-week range: $14.82 - $30.50
ReplyDeleteand another tough day with a 15.90 close. Last year around this time gknt was almost $30 and there was no way to show positive earnings on the balance sheet. This year atleast we had Positive adjusted EBITDA and cash from operations...$4.3 million, compared to an adjusted EBITDA loss of $(1.2) million for 2010. But thinkgeek revenue really slowed. Last year was 55% increase. This year 30% growth. Rev of 119.5M vs 94.6M. I have much more to say but I have to go to class now. I'll be back later. I saw a level 2 bid at 15.90 for 10,100 shares. The only thing that could possibly be positive from today's gknt market activity....maybe short covering or someone who thinks we are oversold. Personally I think we were already trading in a glut before earnings. I know earnings weren't spectacular, but they weren't bad. I think this drop is unwarranted. Though the cc was horrible. That was the worst conference call I have ever heard. I don't even think it lasted 30 minutes. They don't really update us all year and then they have a year end cc that lasts less than a half hour. wtf? They gave no incentive whatsoever to own the stock. Remember last year when ken and other insiders were buying and ken was saying how cheap the stock was @ $26? After that conference call there is no reason anyone would have an urge to go buy gknt stock. From Ken's reaction, I assume he was expecting more questions in the Q&A. He seemed pretty shocked that there were only what 2 or 3 questions. What is ridiculous is that pre split we would be trading at $1.59. That is bs. My rant will continue when i get back from class. What do you think Gerald? Have we reached a bottom?
ReplyDelete"Have we reached a bottom?" If only I knew! I agree with your assessment that GKNT is under valued and I am not selling any shares at this price. Langone has a bunch of shares that are underwater. I have to believe he's having discussions with others about taking this company private. The thin float hurts this stock, but in time this thin float might just help it become a $30+ stock. At least that is my hope.
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