Kinnaras Capital Blog

Since BioScrip Inc. ("BIOS" or the "Company") released Q2 08 results, I've had the chance to communicate with other investors and it has become apparent that many share my displeasure with management and the Company's current direction.  What's been particularly frustrating is that management and the Board have yet to devise any real benchmarks or even long-term guidance on what investors can expect in terms of operating results.  Since BIOS has a fixed cost structure, minor changes in business results can have substantial impacts on EPS making the final result very volatile and thus difficult for the market to get comfortable in approximating a fair value for the Company.  In addition, given the Company's CEO - Rich Friedman - and his horrific track record in terms of performance and compensation, investors have every right to hold off from making meaningful investments in the Company until Friedman can prove he can consistently generate profits.  Given my conversations with other investors, it is becoming increasingly apparent that leaving Friedman in charge is a recipe for disaster and that BIOS could generate far more value if a strategic buyer purchased it.  I believe investors are willing to vote their shares if a strategic buyer approaches BIOS with a fair offer.  The following is a brief review of where BIOS investors currently are and more importantly, what BIOS could be worth if a strategic buyer purchased the Company. Continue reading "BioScrip: Worth More to a Buyer than Alone"

Priceline.com ("PCLN" or the "Company") reported earnings in early August, exceeding Street estimates and raising guidance for the year.  On the surface, those results would usually lead to a strong rally in the stock but PCLN shares instead fell by over 10% after earnings.  Even with the stock under $100 and over 30% off its peak, shares in PCLN may still be overvalued given the headwinds currently facing the Company.
Continue reading "Priceline.com: More Headwinds Ahead"

When I first started writing about BioScrip Inc. ("BIOS" or the "Company") I received some encouragement from a variety of  shareholders including both individual and institutional investors who had been disappointed in management's continued incompetence.  I also attracted the attention of private specialty pharmacy operators and former employees which further supported the notion that the Company's management team and Board are unfit to run BIOS.  I was surprised, however, to find a few smaller investors suggest that my comments ended up driving BIOS down even further. Aside from the laughable notion that my comments could move this stock, the main issue is that BIOS has some valuable assets that are being obscured by management's multi-year history of blunders which have eroded any level of management credibility and the Q2 08 conference call further supported this notion. Continue reading "BioScrip Corp. Q2 08: More of the Same"

After yesterday's earnings warning it looks like the Crocs Inc. ("CROX" or the "Company") story is headed to an end.  With revised 2008 expectations of revenue undperforming 2007 figures and EPS at breakeven, at $4-$5 per share, CROX is still grossly overvalued.  In addition, there's been very little action by management over the past few months to suggest that insiders have any belief that CROX shares represent a bargain.

Continue reading "Crocs: It's the Product Not the Economy"

I received a few inquiries since the initial post on BioScrip Inc. ("BIOS" or the "Company") including a phone call from BIOS Investor Relations contact Craig Allison.  Craig was frank about the issues facing BIOS as well as being open to increasing transparency in terms of the Company's various operating segments.  Nonetheless, after speaking with Craig I continued me review of BIOS and concluded that irrespective of what the "plan" is, execution is paramount and BIOS management is not the team needed to execute in this environment.  While CEO Richard Friedman may have had an enjoyably holiday weekend, I spent this past three day weekend working on a presentation that should hopefully cement the notion that BIOS management and Board members should be removed immediately. Continue reading "BIOS Update"

One of the challenges of investing is weighing hard, quantitative information against intangibles that are difficult to quantify.  BioScrip, Inc. ("BIOS" or the "Company") is a company that fits this mold.  The Company is fairly cheap and at current prices offers an interesting risk/reward.  However, the Company's atrocious Board and overpaid management team led by CEO and Chairman Richard Friedman is a huge negative and impediment towards the Company achieving a better valuation. Continue reading "BioScrip Management Bilking Shareholders"

After the market closed on May 21, Harbinger Capital Partners (“Harbinger”) revealed that Calpine Corp. (“CPN” or the “Company”), of which Harbinger owns 24%, received an offer from NRG Energy Inc. (“NRG”) that valued CPN at roughly $11.3B or $22.60 per share.  This represents a paltry premium to CPN’s current share price and investors should realize this move is simply an attempt by NRG to steal the Company from investors who may have difficulty in assessing how valuable the reorganized CPN and its fleet of power generating assets will be.

Continue reading "NRG's Attempt to Steal Calpine"

Shares of Priceline.com ("PCLN" or the "Company") have been on a tear in recent years as the Company has become a dominant player in online travel.  The stock has consistently outperformed Street estimates as it has been able to achieve rapid top line and bottom line growth.  While PCLN has generated impressive operating results over the past two years, the Company is facing considerable headwinds which could result in a substantial correction in the coming year when factoring in its premium valuation. Continue reading "Priceline.com: Sky High Valuation"

Shares of Downey Financial Corp. ("DSL" or the "Company") have recently resumed their downward trend.  The 10-K was filed last week and included some new information that was helpful in reinforcing a continued negative view on the Company.  Since a variety of analysis has been provided on DSL over the past year, I wanted to focus on some interesting components of its 10-K. Continue reading "Downey Financial on Shaky Ground"

Oppenheimer & Co. bank analyst Meredith Whitney has Wall Street in the palm of her hands these days.  She is a top rated analyst and is credited with her bearish calls on various banks, particularly Citigroup ("C"), and has even been credited with triggering broad market sell offs as a second order effect of her negative reports on some banks.  However, while some will persist with keeping the negative tone on financials, I'd be inclined to think the majority of the gains from shorting have been made.  Nonetheless, talking about widely held stocks like C is in the interest of financial media and analysts like Whitney.

Continue reading "Some Free Advice for Meredith Whitney"