After yesterday’s Quiksilver conference call we kind of knew this was coming, but Reuters is now reporting that the company’s stock fell more than 20 percent in early trading based mostly on word that Quik was looking to sell off assets.
Analyst Eric Tracy of BB&T Capital Markets said in a note to clients that the company’s view of a muted cash generation, coupled with an extension of its credit line makes an asset sale unavoidable. . . “We believe the company may seek to sell its DC business to a strategic or financial buyer,” the analyst said, while expressing his worries that by selling DC, Quiksilver “would lose its fastest-growing, highest-margin business.”
That’s the rub isn’t it? Reminds us a little of Stephen King’s story Survivor Type.
[Link: Reuters]
