It now appears that the company was able to cut less than we had expected. |
It's not as easy as essentially pulling out all their current inventory and replacing it with other products because there's a huge risk there. |
More radical and, likely painful, changes are necessary to preserve the brand and the company. |
The short-term bullish thesis [on Sharper Image] is dead. Long-term holders now have reason to be concerned. Short covering may prop up the stock today, but the fundamentals clamor for far more downside in the days and weeks ahead. |