Tilly's Valuation Keeps Decreasing; Not An Opportunity Without Turnaround Signs (TLYS)
==========
Tilly's, Inc. (TLYS) reported negative revenue comparables and operating losses in 1Q24. The company's valuation remains uncertain due to ongoing losses and cash reserve consumption. The stock may be attractive for aggressive investors speculating on a turnaround, but caution is advised. The company's CEO was replaced by the founder and Chairman in January. The company made operational changes and reduced promotions. However, it is too early to judge the effectiveness of these initiatives. Tilly's stock has fallen more than 30% since the last article. The valuation would be attractive if the company can return to pre-pandemic profitability levels, but there is no evidence to support that belief. The company has been operating at a loss for over a year and has consumed more than half of its cash reserves. It is difficult to value a business that cannot generate operating cash flows. Shorting the stock is not recommended due to the potential for a turnaround. The article was written by Quipus Capital.
#Tilly's #Tlys #Valuation #Turnaround #OperatingLosses #RevenueComparables #CashReserves
https://seekingalpha.com/article/4700072-tillys-valuation-keeps-decreasing-but-the-stock-is-not-an-opportunity-without-signs-of-a-turnaround
Seeking Alpha /
npub1qpf…damf
2024-06-20 08:31:45
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2024-06-20 08:31:45Event JSON
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"content": "Tilly's Valuation Keeps Decreasing; Not An Opportunity Without Turnaround Signs (TLYS)\n==========\n\nTilly's, Inc. (TLYS) reported negative revenue comparables and operating losses in 1Q24. The company's valuation remains uncertain due to ongoing losses and cash reserve consumption. The stock may be attractive for aggressive investors speculating on a turnaround, but caution is advised. The company's CEO was replaced by the founder and Chairman in January. The company made operational changes and reduced promotions. However, it is too early to judge the effectiveness of these initiatives. Tilly's stock has fallen more than 30% since the last article. The valuation would be attractive if the company can return to pre-pandemic profitability levels, but there is no evidence to support that belief. The company has been operating at a loss for over a year and has consumed more than half of its cash reserves. It is difficult to value a business that cannot generate operating cash flows. Shorting the stock is not recommended due to the potential for a turnaround. The article was written by Quipus Capital.\n\n#Tilly's #Tlys #Valuation #Turnaround #OperatingLosses #RevenueComparables #CashReserves\n\nhttps://seekingalpha.com/article/4700072-tillys-valuation-keeps-decreasing-but-the-stock-is-not-an-opportunity-without-signs-of-a-turnaround",
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