RE:RE:RE:RE:RE:RE:RE:RE:RE:RYU is earning profitsMorning,
Apparently I have offended a couple folks here so I will take a second and clarify. Riddler...my comment regarding profits was directed towards WHOA stocks who stated that RYU was making profits. I was not clear on this. You clearly stated pre-profit. My bad...apologies. Having said this, pre-profit currently means money losing. I’m sure we can both read balance sheets and income statements, so there’s little that we disagree on here. I would suggest money losing is more accurate than pre-profit, but this is a moot point.
To Sal1958 I believe reporting same store sales is important. It’s a key metric when evaluating retail, and is one of the most accurate ways to compare oranges to oranges. With RYU, trumpeting increases in sales revenue doesn’t give us much foundation for comparison because these increases are the result of the opening of new stores. If same store sales had increased 41% my level of enthusiasm would be much higher. I believe this is the point that Chime is making, and it’s not at all unreasonable.
Re: third quarter results, I’m sure it will help us to better understand the financial condition of the company, but I think it will take quite a bit longer to get an idea of the growth of the company, and once again this will come down to being able to make meaningful comparisons. I refer to my previous comment on same store sales which are usually reported on a yearly basis.
Our only consistent ( from the revenue side ) right at the moment is the online sales and a couple of the Vancouver stores.
I’ve already commented in previous posts about my concerns re: outstanding share count, lack of execution, salaries, so I won’t go over this again. I obviously have concerns. Maybe you don’t agree with these. Fair enough. Unfortunately, the market does.
A couple of recent things: one concrete, one anecdotal. The company recently retired a debt of about 100 thousand bucks by issuing 2 million shares at 5 cents a share. It concerns me that further dilution at such a low price would be preferable to retiring debt by just paying it off with cash; not really a huge sum of money.
And finally, I was in Metropolis yesterday. The mall was packed and RYU was virtually empty. I was really surprised. This has been my experience most of the time when I visit their stores.
So to conclude, I wear their clothes, I like their clothes, I’ve traded the stock and currently have little in the game. I want the company to succeed, but as an investor, I don’t think it’s wise to just be a cheerleader.
I didn’t call anyone on this board ignorant. I don’t believe this. My point was that it’s ignorant (as in not wise) to be selective with information when assessing strengths and weaknesses in a company.
At the end of the day, the market will tell us what it thinks, and unfortunate it has been. Kind Regards.