The FTC has effectively killed WSC's business model. WSC is now a former growth company with a potentially significant festering accounting issue, low growth prospects and a lot of maturing debt.
The last report was written after management announced their intend to repurchase 1B worth of shares (I understand that this was partly to placate to the investors and show everything is normal). However, since then, there has been a small shift.
In specific, BlackRock just recently, three days after your last report on Sep 30th, bought $300M worth of shares only for the SEC report to become available only last week. I was wondering how this might affect your short position? Are you still shorting WSC or would you be taking a pause to see how things would be moving.
Do you think 300M cash injection would be enough for the management to cover the 170M termination fee of the McGrath's failed merger and focus on decreasing debt/ updating their inventory. Or the pit WSC has dug is too deep and the damage is beyond repair.
Great materials in all of three articles on WSC!
The last report was written after management announced their intend to repurchase 1B worth of shares (I understand that this was partly to placate to the investors and show everything is normal). However, since then, there has been a small shift.
In specific, BlackRock just recently, three days after your last report on Sep 30th, bought $300M worth of shares only for the SEC report to become available only last week. I was wondering how this might affect your short position? Are you still shorting WSC or would you be taking a pause to see how things would be moving.
Do you think 300M cash injection would be enough for the management to cover the 170M termination fee of the McGrath's failed merger and focus on decreasing debt/ updating their inventory. Or the pit WSC has dug is too deep and the damage is beyond repair.