Trans World Entertainment Corp (TWMC)
The Company operates retail stores and five e-commerce sites and is retailers of entertainment software, including music, home video, and video games and related products in the United States.
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too much online competition
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I used to work for TWEC and it's a horribly misrun company.
Their overall management strategies include "Throw everything against the wall and see if it sticks", "buy up small, failing competitors and burden yourself with debt".
Their business is in CD's, primarily. As of now, they have 5% of the market. Borders and Barnes & Noble each have a larger market share than that.
Best Buy, Wal*Mart and iTunes are crushing TWEC.
They have failed to show any innovation, given the current market trends of online music/downloading, etc.
Stores are closing around the country.
I give this retailer as a whole 5 years before going belly up.
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Veni vidi duci - I came, I saw, I calculated.
They have a highly flawed business model. They have about a third of the employees that Amazon has. They have a market cap of 148 M compared to Amazon's 35.6 B. How can they compete with Apple, Amazon, Wal Mart?
I just don't see opportunity ahead of them.
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q4 earnings up but near 52 week low.
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The Media retailer is going the way of it's predecessors (Sam Goody, Suncoast). It's competing with big box retailers that are often able to undercut them on prices, the majority of its inventory is priced at list, which means it doesn't sell.
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Trading below 1/2 of net tangible assets and an enterprise value to revenue ratio of 0.16 while remaining profitable. With the continuing increase in music and movies on-line, their business will struggle, but given the valuations, they are worth the risk.
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This specialty retailer of music, DVDs, etc. faces brutal competition from WalMart, Target, BestBuy, and the increased migration of consumers towards digital downloads and on-demand entertainment; meanwhile, it's facing negative free cash flow and growing debt; potentially headed towards bankruptcy
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0.5 Price/Book
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starting new ventures
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Simply put, I don't see how this company is not overvalued. Analysts expect 10% growth over the next five years, which is less than the S&P average. That'd be an underperform right there. Add in the fact that the company had negative growth over the past five years, is not managing money well, and is losing cash while gaining debt, I simply don't see this company being public in five years. Maybe Chapter 11 could save them...

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