May 8th, 2015

“Make Money Off Dying Companies (Quiksilver)” – Yahoo Finance

Quiksilver, Inc. (NYSE: ZQK) – Yahoo Finance
This company makes gear and apparel for the sun and surf crowd. Its sales peaked at $2.26 billion in fiscal (October) 2008, and will likely fall below $1.45 billion this year. The company appears to be on the down wave of a fad and is on pace for its second straight year of net losses.

Of greater concern, free cash flow has been sharply negative for four straight years. This has caused cash to fall to around $50 million, against more than $800 million in short and long-term debt. Lenders hate to see that and could eventually enforce debt covenants that pushes Quiksilver to seek bankruptcy protection.


Tags: , ,