The CEO just resigned, but the new CEO came from corporate raiding firm however he holds about 1% of the company which he brought with his own money. The firm he worked for was Sun Capital Partners. Got a bad feeling he may sell the company to Sun Capital for a penny on the dollar.

Are there any real assets there/any real upside in their business? What went wrong? Is it simply the same market factors affecting all big box retailers?

p/s amzn 2.46 revenue growth 13%
p/s hgg 0.02 revenue growth -10%

Imagine hgg can earn 5% profit, or 1/2 the average sales tax.
that is 100 MM in profit there are 27.7 million shares outstanding.
Thus they would earn $3 a share. Put a 15 multiple it or $45 a share.

1. Are there any real assets there/any real upside in their business?
They have inventory, I don't know if they own their real estate, low or no debt. THey are cutting costs and were actually profitable in last quarter (if you exclude depreciation and asset impairment). The upside is $45 a share or more, without any growth. There is no guarantee amazon grows one more day and when all their minimum wage employees and drivers demand wage increases or form a union, watch margins drop.

2. Is it simply the same market factors affecting all big box retailers?
Seems their main business is appliances. Thus they are now getting competition from lowes, hd, amazon online, and even ebay. However yoy was an improvement. But real test is next quarter. There is a chance they are trying to destroy the company to get it cheap for insiders. Today there is so much fraud in the markets, that there really is nothing you can do about it and no one is enforcing it, the SEC is eating paint chips.

What does p/s of 0.02 and 2 mean? For every $1000 you invest in HGG, the company sells $50,000 in merchandise a year. For AMZN, for every $1000 you invest, the company sells $500 in merchandise a year. Furthermore, there is no guarantee AMZN can keep growing revenues and I bet they will slow to less than 10% in the near future, as they were 30% only a few years ago. If HGG can stop the sales decline, they can actually increase the sales and they actually send people flyers. Just ending the sending of flyers would possibly make them profitable. It is not that far out of the questions as people can look at the ads online anyways. They have cut expenses more than sales losses.

considering in their best years, ie 2006, they did 2.5% of sales, 5% will never happen.

why not just say 25% net income margin? They are both as unbelievable.

What's the best way to determine if there's fraud? How low can they realistically drive it down?

There's a SeekingAlpha article: "hhgregg: It's Only A Matter Of Time Before It Goes To $0"

Responding to steelhouse. You should know better ahnuld.

So the clown bored socially ******ed is responding, why are you still on this site.

Gross margin is 25% at WMT. Gross margin is 28% at HGG. I put the odds at 50% of chap 11, now that they changed CEOs. Furthermore the new CEO is a private equity guy. Does anyone really look at the ads in the newspaper? They can save 30MM a quarter just by ending the advertisements. Do you look at amazon ads?

I once bought scss for $.20, zales for very low, DTG dollar thrifty for very low maybe 10 cents. Sometimes they fail radioshack did. Some other one DECK for low, TPX for 7. AZO for 50 and it has never had a book value that was positive.

Most of the reason HGG has low book value is due to strong buybacks in the past. It is hard to do this anymore because if your stock has value private equity will steal it.

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"I see trees of green, red roses too
I see them bloom for me and you
And I think to myself what a wonderful world."
- Louis Armstrong

I like our conversations better one way. Thanks.

What price should I buy at? I like a gamble.

Thank it best to wait a year. Seems cash flow too high negative. Real Cap Ex are still 10 MM a quarter which makes earnings negative. Try CLUB or MNI.

I'll keep tracking. I try to avoid micro caps w/o a good value-add plan and don't like either business.

I made a mistake. 3Q2015 did show a small profit but that does not include capex. However, but 3Q2014 also showed a small profit of +7 million or so not including capex. 3Q2013 had a +18 million profit. However, these are the most profitable xmas quarter. They will get cash back next quarter but including mandatory capex they might only be a little better than 2013. The report in May 2016 will be telling and since there is no new information, the stock will probably trend down to that report. But it is the report after that is what I want to see. Losses are smaller due to cost cutting but they are still losses and they really don't have that many assets or cash. And it may be that people are getting more comfortable buying washing machines from amazon or home depot, then it become a real crowded and competitive spot.

Sold this once I saw steelhouse was in. Thx steelhouse!

Bored I think ur missing a lot of value having steelhouse on ur ignore list.

Sorry you have to lose in stocks probably vote Bernie too. +6% alpha since 2000.

gross margin at software companies is 80%. so what, they are completely different businesses.

im not saying if its a good or bad investment, im saying your margin analysis contains no analysis

https://www.bloomberg.com/news/artic...-as-next-month