What’s going to happen?

[Jacuzzme]

Explained as you might do to a third grader, or a golden retriever, what does the future of this company look like?

https://www.poolmagazine.com/industr...mpanys-future/

[Green_Mountain]

I skimmed thru the article in 30 seconds so may have missed something.

But I’ll add stock splits are generally bullish.

Reverse stock splits are generally bearish and point to deep shit most of the time for that company.

[eyecu2]

I would suggest the reason for the reverse stock split is so it doesn't get delisted, or just only as a penny stock which has very little attention from mainstream investors. Secondarily- the article talks about reduction of income and increase in debt- which doesn't bode well. I'd say that stock is a sell, unless they "own" the swimming pool market. I didn't research more of the company, but NONE of that news is good news in general. In addition- it even points to a downturn in general spending of non-essentials for households. Typically, non essentials in things like pools, campers, motorcycles, etc. ,all point to downward trends. Thats my take on it- from 35 yrs of stock trading- I'd expect them to be on the way out shortly-

Not unlike a sears, or enron or GM, or GE....all did the same thing. They might survive- but nothing like it's former glory. When the debt sheet gets too much and revenue is also dropping-it's bad news.

[Jacuzzme]

The company is looking to buy a buddy’s/neighbor’s business. It seems they’ve already bought out all the chain places in town and are now looking to gobble up the smaller, independent stores. It seems very strange that a place that’s apparently doing bad is still making what I’d consider pretty sweet offers to buy a small business. Maybe they’re trying to eliminate the competition?

[eyecu2]

Look at how Walgreens and Rite aid started out- Acquisition and then build outs- and then collapses. The idea of buying all the competition is one thing, but building a cheaper or better mousetrap is how one of the biggest destroyer of small business did it's desemation. Walmart decided just to sell everything cheaper than the rest, with cheap products, knockoffs, and then when they got into the grocery store business- they saw they can really make all the money- by keeping purchasers at one destination vs. multiples ones.

I've seen a lot of business consolidation where there was profits, and then companies running the profit out of the business to stay competitive. Doesn't usually end well, unless you got deep pockets or lots of capital available to keep the store shelves stocked etc.