It wasn’t the good news I was hoping for (a takeout), but it was good enough. This morning, B. Riley announced it was taking a 29.4% financial stake in bebe stores. This announcement is good for two reasons. First, B. Riley is converting its bridge loan into equity, which takes away any risk of bankruptcy. Second, all transactions were done above the last closing price of $4.44, confirming my view that bebe stores is significantly undervalued.
Okay, a couple of things need to be said about the title. First, I’ve never, ever, said this to anybody, although I’ve wanted to many, many, times. Second, there are repercussions to saying something like this. Any money you save may be totally offset by medical payments. Third, although getting fat asses out of your car will save you money, this really applies to any and all excess weight in your vehicle since this all affects fuel economy.
I’m going to let you in on a little secret. Maybe it’s a big secret since I talk about personal finance and investing. I don’t know my own salary. Or my net worth. Or how much my investments are up (or down). Sometimes I don’t even remember my own name. I keep track of my expenses, but I don’t really look at that either.
I know what all these numbers are directionally. But my point is I don’t keep track of them on a regular basis. If you want to be successful, you wouldn’t keep track of any of this stuff either, except your name. You sound like an idiot if you don’t know that.
If you’re new to investing, there’s one thing you should know: investors are lazy. If you’re an experienced investor, you should already know this because you are lazy. With thousands of stocks listed in the US alone, investors are too lazy to do in-depth research on them all. Looking at valuation helps investors quickly judge a company and compare them vs. peers.
Although there have been a few hiccups along the way, like the voluntary delisting from NASDAQ to OTC in December and the sale of its headquarters falling through, BEBE is largely living up to expectations.
As I have discussed previously, the company is moving to a licensing-only model. Since it will no longer need designers, warehouses, and distribution centers, costs should become immaterial. There’s been some debate around how low costs can go, since the company is not great around providing detailed information. Now, it appears we finally have a rough idea, and it’s better than I expected.
Continue reading “BEBE’s Taking an Axe to Costs”
I realize most people don’t have aspirations to become a billionaire. Most people just want to get out of debt and maybe live a middle class lifestyle. The more ambitious of you want to become millionaires. Trust me, being a millionaire is over-rated. Millionaires may have been an exclusive segment of the population 50 years ago, but it’s not so exclusive anymore. According to this CNBC article, there are 10.8mn households that have a net worth of $1 million or more, or 10% of total households. Being a millionaire used to be like having platinum status, and now it’s more like gold. Maybe even silver. Continue reading “Why You’ll Never Become a Billionaire”
Like most people, I need to travel for business. I don’t travel much, maybe 5-10 times a year. So I’m not like those hardcore travel warriors that are flying every week and have executive platinum status for everything. I honestly don’t know how those people do it. First, it must suck being away from family for so long (maybe that’s not such a bad thing when you have small children). I think some of them fly so often they know the flight attendants by name! But I do travel enough where it makes sense to take advantage of what I spend. Here are my tips on how to maximize your business travel spend.
You have one bitcoin burning a hole in your hard drive and the holidays are coming, so you’re looking for gift ideas – congratulations! Right now one bitcoin is going for around $17,500. Hopefully you mined this bitcoin in its infancy, or bought it when it was under $100. Because if you did, it’s all upside! Less so if you bought it yesterday, although you’ve done fairly well if you bought it two days ago. I have no view on where bitcoin will go, but now may not be a bad time to take a little off the table. Here are my suggestions on what you can buy for $17,500. Tax not included, but if you have one bitcoin, I’m sure you can scrounge for the rest!
Today, BEBE announced that it is planning to VOLUNTARILY delist from the NASDAQ and move to the OTC market. As a result of this news, the stock closed down almost 14%. In my totally biased opinion, BEBE’s voluntary delisting is a big nothing burger.
Earlier this year, my beloved Lexus was totaled! I had the car for 14 years and I was hoping it would last me at least another 10. I was stopped at a light when a distracted driver in a large SUV rear-ended me. How did I know he was distracted? That’s an educated guess considering everybody else was stopped at the red light yet he somehow thought that he could keep driving. Thankfully, I didn’t suffer any permanent injuries. Hopefully you’ll never experience this. But if you’re ever in this unfortunate situation, here are some tips on how to deal with a car accident and what to do when your car is totaled.