Thanks @Roy2U. I am much more wary of companies that are heavily...

Thanks @Roy2U. I am much more wary of companies that are heavily geared these days, especially when they operate in fairly competitive and cyclical industries like retail.

GXL’s dirty balance sheet is what has kept me from putting any capital behind it so far, even though the underlying operating performance is reasonable. Now more than ever, it is a question of whether management can be trusted and this is really a clearing of the decks, or if these issues will persist for some time to come. Experience tells me the latter is more likely.