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Black & "Blue" Box On Tap


Nice chart dude!


Black Box (BBOX) reports Q4 this afternoon. Revenues of $133M or below would give the company their 5th straight year of declining revenues - and I am not talking growth, I am talking straight up dollar numbers. Consensus is for $145M so the co. has that much going for it.

It's tough to game results for these guys because they are not the most disclosure friendly types. We do know that they appear to have gone back to the acquisition well this quarter. For perspective, Black Box is a roll-up of dozens of tiny companies, which gives BBOX the distinction of having accumulated $420M of goodwill on its balance sheet - about 2/3 of its assets and 85% of its net assets.

The company has a history of going into debt to buy back shares and lousy quarterly reports have often been followed by pretty sharp rallies. But short of a miracle, the longer term story for this company . . . let's just say it is tough to find a longer term story.

I have pointed out BBOX DANDRUFF before and here is its current iteration.

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Position in BBOX
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