The Children's Place, Inc. PLCE

They should announce the pricing of the rights offering anytime soon. All information is out.

Looks like it will be 11.0$

Record day for rights offering is TODAY

Today is the record day for the rights offering.

Rights offering record day December 13, looks like the price will be determined by the market.

We are on a run rate of 1.4 B$ sales for next year.
At 35% GM and same operational expenses we should have EBIT of $75-80 million. This is the true earning power.
Depending on interest rate this should easily translate into 3$ EPS and they will be able to reverse the valuation allowance of the tax loss asset leading to positive equity.
Converting $90 million debt to equity (rights offering) will further support the capital structure.
The stock will reach 40$ next year.

Top line is very disappointing. GM is great and so is the improvement in SG&A. They managed to reduce operational costs and to improve margin. The issue is the top line and how can they grow it going forward.
Q4 is critical. We have very weak comparable quarter and CF will be huge once they close the CF circle by year end.
They can do 2$ EPS next year with the same top line. Stock is not expensive but investors expected better top line and higher EPS.
The dilution from the rights offering is also putting pressure on the stock.
Expect volatility during next few days.
Long term perspective did not change. Stock is cheap.

It is coming soon. It will be awesome.

Q2 ER released late on September 16th because they had a new auditors. Q3 should be released this week for sure probably today.

Monday , December 2nd or the day after it is coming. A massive ER will send us up to the 30’s…