Apr. 21 at 4:06 AM
$SNBR has spent
$1.1B on buybacks since 2012 removing about 32M shares from the float, and paying an estimated price of
$30-35 per share to do so. New CEO is aware that any raise at this valuation would be a catastrophic waste of that money which is why they announced their seeking only a
$50M rescue loan which is quite small. Given they already cut
$235M in yearly spend, and just launched 2 new affordable mattresses behind them with great marketing strategies that actually outpaced their own forecast by almost 3x. While the details of the loan are not yet known, It is highly likely that they intend to take on a high interest rate rather than give out equity for this loan if they can. The loan amount in itself also shows that although they do need money to bridge a gap in their operation, it’s certainly not a lot before they start to stand up on their own again. Travis Kelce also bought 5% of the company through a contractual agreement in January paying about
$10/share…
