It's pretty simple. A high PE valuation, with falling margins, unclear earnings, and sleepy management.
Yes sleepy. The current CEO has done what? Presided over a series of excuses and earnings misses. It is no wonder the shorts are in there. Look at the capitalization. $1.5Bn. And the founder is no spring chicken, and the times have changed. Look at the competition. Will Amazon offer a product offering in this space? betcha they will. Will discounting get worse... bet it does.
27x PE can easily be 18x. Question for those that own the stock, will the P fall or will the E fall.
Dividend at risk? Ouch!
BKL Price at posting:
$88.05 Sentiment: Sell Disclosure: Not Held
