House of cool owners already down $2.5mm!Welcome to the $hit$how of being a Wildbrain shareholder guys! It only took you a few months to lose 25% of your equity value. Get ready for the next few years of this gong show. Here is what you can expect:
1) Continued massive dilution of your holdings while the BOD and management try to figure out a plan to waste all the excess cash flow the business generates from the Peanuts franchise. The capital raises always come at the worst times and none of the BOD or senior management ever put their own money up for the excessive equity comp they recieve.
2) Continued financial mis-management by the CFO who seems to not know how to hedge this company's financial risks (look back at the failure to entirely hedge the interest rate risk on the term loan & the amount of currency risk losses they have incurred over the last 4 years)
3) Continued mis-allocation of capital by the comopany and rising SG&A with growth no more than the rate of inflation.
4) Absolutely no interest from institutional investors (with the exception of Fine Capital...who is the worst money manager on WS!)
Congrats to the sellers of House of Cool for getting in at the top. There is one constant with this company - and that is just when you think the stock can't go lower...it goes lower!