"The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," said Chief Executive Officer Ron Snyder. "Retailers in general are planning more cautiously, and therefore, we did not experience the level of at once business we originally expected."
On April 4, amid a 53 percent drop in the share price (since the beginning of 2008) and rising short interest, Wedbush Morgan Securities analyst, Jeff Mintz, reiterated his Strong Buy and $44 price target on the company. Oops!
A director of the colorful shoemaker bought 250,000 shares, according to a Securities and Exchange Commission filing on March 10. In a Form 4 listed with the SEC, Michael E Marks, reported the purchase of $4.98 million in stock at an average price of $19.95 a share. Mr. Marks, retired CEO of Flextronics, has serves on the board of the OEM provider since 1991, and also serves as a director of NAND flash-storage card maker SanDisk Corporation.
I need a smart fellow
to make all the sounds,
Who can bark like a dog,
and bay like the hounds!
Of interest, two other board members have ties to Flextronics, too. Chairman Richard L Sharp (of Circuit City fame) acts as the chairman of Flextronics; and, Thomas J. Smach, a member of the board of directors since April 2005, is currently the Chief Financial Officer of Flextronics.
Your GONG is terrific,
your toot is inspired!
Quick come to BONG-BONG-BONG,
McMoing Boing—you’re hired! ~ American Writer Dr. Seuss, Gerald McBoing Boing (1904 – 1991)
A lesson learned too late: 'who-you-know' politics, electronics manufacturing, and knowing how to go BOING BOING instead of talking English do little to serve the best interests of shareholders in a shoemaker!
Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.