Some really interesting things have happened in the stock market this year, like how certain stocks went up while investors were waiting to see the Houses vote on President Trump’s tax bill, and how the S&P 500 Index hit 20% gains. With that being said, not everyone has Lady Luck on their side. One of these stocks happens to be supplement and vitamin company GNC Holdings (NYSE:GNC), a company that found itself in the wrong place at the wrong time.
As of this writing, GNC Holdings is down 23.47% and is currently trading at $3.76. The GNC stock might be one of Thursday’s worst performers, but I think there are others who might fill that spot instead (looking at you, Genetic Technologies Limited (NASDAQ:GENE).
However, looking at GNC Holdings from the inside, you can see that it is still struggling. The Pittsburgh-based company’s debt load is sitting at $1.4B and operations have dropped to roughly $200 million. For perspective, this means GNC Holdings operations have plunged $200 million in a span of two years. I don’t know about you, but that figure seems a little too high for my liking.
Thursday’s decline started after GNC took yet another step to bolster its finances just in case it has to file for bankruptcy. GNC’s management has come forward and said that it would be willing to exchange roughly 14.6 million shares as well as $500,000 in cash in order to purchase back millions of 2020 convertible senior notes. The team reportedly believes that this move will be beneficial for shareholders – but it looks like the market disagrees.
It genuinely seems unlikely that GNC Holdings will manage to make a comeback before the year ends. Personally, I think the stock will continue to fall in 2018. Why? The company is going to report its earnings results in February, and it has forecast a significant drop in sales, which suggests a negative Y-O-Y growth rate.
All in all, unless GNC Holdings somehow manages to get its massive debt load number lowered asap, it’s safe to say that I will be thinking of the company’s team, and their families, over the holidays.
Featured Image: twitter
