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gnulaw (58.73)

(NASDAQ:GKNT) Q3 Ending Sep 30: Fellini Satyricon meets Barbarians at the Gate

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November 15, 2011 – Comments (8) | RELATED TICKERS: BBY , AMZN , IACI

 


(NASDAQ:GKNT) Q3 Ending Sep 30: Fellini Satyricon meets Barbarians at the Gate

Geek "really, we're going to be profitable. No really" Net was again unprofitable.

Key takeaways from the earnings announcement and conference call...

1. Jeff Drobick should immediately be made CEO of all Geeknet.


2. [Update3] 45 Months Ago a Large Institutional 13D Shareholder Put Pressure On Geeknet (GKNT) Board Demanding to Unlock Value. Where are the Shareholders Today?

(NASDAQ:GKNT) closed November 14th at a pre 1:10 reverse split price of $1.72. 45 months ago GKNT closed at $1.78 when the demand was made. Hedge Fund valued Geeknet between $50-$150/share (post reverse-split)

A: Arguably considerable non-insider shareholder value [destruction] has been sustained as the company also has ~$30 million less cash ($54M v $24M).

3. Why hasn't Washburn delivered Walmart , at least,  to take on all of Thinkgeek's "invented here" products? Why else is he there?

4. Langone stopped falling all over himself about how great the employees are now boasting how all previous management has been eliminated.

5. I am confident Caroline Offutt had to have been crying during Colon's presentation as 1. it appeared he was hearing voices during said presentation and 2. there was a disturbing disconnect between hearing him simply pronounce the product names, no real sense of unbridled passion...ultimately his bottomline connection with the [original/remaining] employees.

Geeknet simply has no geek credibility with this Board, Chairman, and Thinkgeek CEO.

Fellini Satyricon meets Barbarians at the Gate...

and

6. As has been consistently said over the life of this non-insider GKNT shareholder value blog over the past five years....GKNT should be put into a bidding war with, at least, NYSE:BBY), (NASDAQ:AMZN), (NASDAQ:IACI) by the end of Feb 2012 or within ninety (90) days as Management reports profitability, assuming Jeff (and other key employees) are still with Geeknet.

8 Comments – Post Your Own

#1) On November 16, 2011 at 7:10 PM, gnulaw (58.73) wrote:

>>5. I am confident Caroline Offutt had to have been crying during Colon's presentation

...or laughing hysterically.

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#2) On November 23, 2011 at 9:13 PM, gnulaw (58.73) wrote:

The numbers?

Based on GKNTs Q3 ending September 30 numbers annual break even* revenues should be near $116.5M*. This would suggest GKNT has to generate appx $56.8M in revenues for the ninety days ending Q4 December 31st.

Note: Revenues through Q3 ending September 30th were $59.7M.

Based on a projected 30% YoY q4 growth in revenues revenues should come in around $65M (v $50M q4 2010) bringing total revenues to appx $125M. This would suggest Net Income of appx. $8.5M q4 or $1.3M (<$7.2M> + $8.5M) for the year. Based on appx 6.4M shares outstanding this would come to appx .$0.20/sh suggesting a PE of 100 at $20/share.

 

* (1.33 x 22.6M (Operating Expenses thru Q3))/.258 (Gross Margin). Assumptions made: BE = Fixed costs (GKNT "Operating Expenses") + Variable Costs (GKNT "Cost of Revenue").

 

Note: The above is all based on estimates from publicly available information.

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#3) On December 11, 2011 at 12:27 PM, gnulaw (58.73) wrote:

GKNT Update, as of 10 December 2011

GKNT Shares outstanding: 6,331,000
52-Week Range: 14.82 - 30.50
Market Cap: 115.57M


Ownership Summary:

TCS CAPITAL MANAGEMENT 549,477 SHARES 9/30/2011 (8.68% of class)


KEN LANGONE 210,000 shares 5/13/2011 (3.32% of class)


MARLIN SAMS FUND LP, SUZANNE PRESENT - SEC SC 13D/A Filed 5/12/2011, 1,015,812 Shares (16.1% of class).

42 Institutional Holders 9/30/2011, 1,918,941 Total Shares Held (30.31% of class).
=======
58.6% of class.

Float: 4.77M shares

Short Interest 11/30/2011:
Settlement Date 11/30/20
Short Interest    269,712
Avg Daily Share Volume 18,304
Days To Cover 14.735140

Source: Nasdaq.com finance.yahoo.com 

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#4) On December 19, 2011 at 5:14 PM, gnulaw (58.73) wrote:

>> 3. Why hasn't Washburn delivered Walmart ,at least, to take on all of Thinkgeek's "invented here" products? Why else is he there?

Old Navy carrying Thinkgeek's Electronic Guitar T-Shirt for girls, women, guys...

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#5) On December 21, 2011 at 9:59 AM, gnulaw (58.73) wrote:

REPEAT from comment #2 above:

 

The numbers?

Based on GKNTs Q3 ending September 30 numbers annual break even* revenues should be near $116.5M*. This would suggest GKNT has to generate appx $56.8M in revenues for the ninety days ending Q4 December 31st.

Note: Revenues through Q3 ending September 30th were $59.7M.

Based on a projected 30% YoY q4 growth in revenues revenues should come in around $65M (v $50M q4 2010) bringing total revenues to appx $125M. This would suggest Net Income of appx. $8.5M q4 or $1.3M (<$7.2M> + $8.5M) for the year. Based on appx 6.4M shares outstanding this would come to appx .$0.20/sh suggesting a PE of 100 at $20/share.

 

* (1.33 x 22.6M (Operating Expenses thru Q3))/.258 (Gross Margin). Assumptions made: BE = Fixed costs (GKNT "Operating Expenses") + Variable Costs (GKNT "Cost of Revenue").

 

Note: The above is all based on estimates from publicly available information.

 

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#6) On December 26, 2011 at 9:35 AM, gnulaw (58.73) wrote:

60 Minutes on CNBC this morning on TD Ameritrade's Trade Architect had a  featured segment on "Get Me The Geeks!" hosted by Steve Kroft. This was actually a rerun from December 2007 according to CBS News' site. The point is "Geek" is big. It is where it's at. Where it's been at, at least, since 2007. (NASDAQ:GKNT) owns this franchise but has yet failed to monetize it and maximize shareholder value for non-insider shareholders. The Media Division is profitable. Langone blew it when he failed to spin-off ThinkGeek to engage in a $100 Million IPO around February 2011. On February 15, 2011 GKNT Langone announced Q4 numbers ending Dec 31, 2010:

"...Total revenue for the fourth quarter of 2010 was $50.0 million compared to $32.6 million of revenue for the fourth quarter of 2009. Net income for the fourth quarter of 2010 was $4.7 million or $0.75 per diluted share compared to net income of $1.5 million or $0.25 per share, for the same period a year ago. Adjusted EBITDA for the fourth quarter of 2010 was $5.7 million, compared to adjusted EBITDA of $2.8 million for the same period a year ago. A reconciliation of net income (loss) as reported to adjusted EBITDA is included in this release.

Fourth Quarter Highlights:

E-commerce revenue increased 60 percent to $44.7 million for the fourth quarter of 2010, compared to $27.9 million for the fourth quarter of 2009. E-commerce orders shipped increased by 72 percent in the fourth quarter of 2010 as compared with the same period last year. Media revenue increased 12 percent to $5.3 million for the fourth quarter of 2010, compared to $4.7 million for the fourth quarter of 2009. Total cash and investments at the end of the fourth quarter 2010 was $35.3 million..."

On February 18, 2011 GKNT closed at $29.59. This is right when Langone should have had the ThinkGeek IPO in place. Game over. (Assuming the right management, Board).

GKNT closed at $16.18 December 23rd. 

qed.

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#7) On December 26, 2011 at 9:37 AM, gnulaw (58.73) wrote:

>>GKNT closed at $16.18 December 23rd

GKNT closed at $16.18 December 23rd, 2011.

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#8) On August 20, 2012 at 5:44 PM, gnulaw (58.73) wrote:

>>(Nov 15, 2011)  5. I am confident Caroline Offutt had to have been crying during Colon's presentation as 1. it appeared he was hearing voices during said presentation and 2. there was a disturbing disconnect between hearing him simply pronounce the product names, no real sense of unbridled passion...ultimately his bottomline connection with the [original/remaining] employees.

Geeknet simply has no geek credibility with this Board, Chairman, and Thinkgeek CEO.

Fellini Satyricon meets Barbarians at the Gate...

Update

(Aug 20 2012)  Breaking News  Geeknet Announces Planned Departure Of President And CEO Of ThinkGeek, Inc.

qed

 

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