At some point today, the delisted NYSE penny stock of Furniture Brands International Inc. (FBNI) should commence trading on the OTC, but traders looking to flip the low floater should hold off. In a tale that makes both Harry Lappa and Mackie Barch look like choir boys, FBNI stock is due to be pummeled while it seeks out an attorney to help it file for Chapter 11 bankruptcy. Burning through money and building up debt like a shopaholic on steroids, the direction Ralph P. Scozzafava, Chairman of the Board of Directors and CEO of the furniture makers in January, 2008 has even the termites in Indonesia going into starvation mode as the curtain slowly closes.
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FBNI Stock Quote
Market Cap: 4.50M
Last (After Hours): 0.53 ▼ -0.03 (-5.36%)
Volume: 573,122
Open: 0.57
High: 0.60
Low: 0.51
Authorized: 200,000,000
Issued and Outstanding: 8,041,438
14-Day Rel Strength: 12.52%
1st Resistance Point: 0.6022
1st Support Level: 0.515
2nd Support Level: 0.4702
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Over the past 5 years, things at Furniture Brands have been becoming more and more imminent that the direction of the Company has been irreversible. Having not posted a profit since 2006, the last 3 years have been worse than dismal for shareholders of what is now FBNI stock after the Company posted losses of -$47.27 million, -$43.75 million and -$39.03 million for the years ended December 31, 2012, 2011 and 2010, respectively.
Over the same 3 year stint, sales have remained steady though with filings reporting $1.07 billion, $1.10 billion, and $1.16 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Just 3 weeks ago, Furniture Brands filed their Q2 results and sales for the 3 and 6 months ended June 30, 2013 were $254.98 million and $509.71 million, respectively. In comparison to the year prior, the results weren’t all that off: $265.47 million and $552.73 million, respectively – about a -7.78% decline for the 6 months ended.
However, the Furniture Brands story doesn’t end there…
Cash on the books at the end of the last 3 years ended has been getting gobbled up while liabilities have been growing at a rapid pace. Cash at the end of the last 3 years dropped from $51.96 million as of December 31, 2010, to $25.39 million as of December 31, 2011 to just $11.87 million as of December 29, 2012. In the latest Q filing, cash was a measly $8.82 million while accounts payable grew from $108.06 million at the start of the year to $113.59 million as of June 30, 2013.
The liquidity issues for Furniture Brands lies much in part to the Ralph Scozzafava compensation package. With dwindling cash and a bunch of shareholders who have to be pissed off, Ralphy boy made $1,980,843 in total compensation and has been a target over at TheStreet.com for years because of this. Most CEO’s would take a hit and show their efforts being made to make things better for the bottom line, but not Ralph and his million dollar well rehearsed smile.
As for FBNI stock, it’s getting crushed like tomatoes ready to be canned. The PPS is -$2.27 below the 50-day moving average of $2.80 and that’s after a recent 5-for-1 reverse stock split that was made to try and keep above the NYSE listing requirements. The RS makes the OS thin and the chances of a proper momentum flip a strong possibility, but only when the PPS gets to a respectable level.
As shitty as things are for the Company, they’re sill on pace to book a billion dollars in revenues. That alone coupled with the aggressive approach OTC traders have for low-float issues makes watching FBNI stock to get cut in half from yesterday a must do.
About FBNI Stock
Furniture Brands International, Inc. was a world leader in designing, manufacturing, sourcing and retailing home furnishings which includes some of the best known and most respected brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge.
Click here to view the SEC filings for FBNI.
Click here to view the website for Furniture Brands International.
Last 5 Trading Sessions:
| Date | Last | Change | Volume | |
| 08/27/13 | 0.56 | -0.04 | -6.67% | 571,700 |
| 08/26/13 | 0.60 | -0.13 | -17.81% | 757,400 |
| 08/23/13 | 0.73 | +0.05 | +7.35% | 289,100 |
| 08/22/13 | 0.68 | -0.03 | -4.23% | 404,800 |
| 08/21/13 | 0.71 | -0.08 | -10.13% | 201,300 |
Bottom Line:
There is a 99.99% chance a Q is going to be added to FBNI before the end of the year. Despite that, delisted NYSE penny stocks almost always bring in some heavy selling from shareholders who think OTCBB stocks are a disease to their portfolios. Once the selling subsides, FBNI stock could see a run during promo season which kicks off next week.
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