BEAR PICK: A VERY STRONG SELL: Emerson Radio Corp (NYSE MKT: MSN)

While this is a “top technology” stock that trades on the NYSE MKT, it is not a pick for us. I see a strong shorting opportunity here. Reading today’s press release all I can say is that I wish I put this bear pick out yesterday as planned.

The Company’s press release from yesterday reads kind of sad as Emerson was once a household name (in low, low end) electronics.

“Operating income for the first quarter of fiscal year 2014 was $1.3 million, a decrease of $3.1 million, or 69.9%, from operating income of $4.4 million for the first quarter of fiscal year 2013 due to the lower year-over-year net revenues and higher year-over-year SG&A expenses, due primarily to a year-over-year increase in legal fees, tax consulting fees and a reduced benefit in bad debt recoveries, partially offset by a decrease in compensation costs.

“Net income for the first quarter of fiscal 2014 was $1.4 million, as compared to $3.8 million for the first quarter of fiscal 2013, a decrease of $2.4 million, or 64.3%, due to the year-over-year decrease in operating income. Diluted earnings per share for the first quarter of fiscal year 2014 were $0.05, as compared to $0.14 for the first quarter of fiscal year 2013, a decrease of $0.09 per diluted share, or 64.3%.

THE CEO BLAMES WAL-MART NOT CARRYING THEIR PRODUCTS:

Duncan Hon, Chief Executive Officer of Emerson Radio, commented, “Our first quarter fiscal 2014 revenues and net income declined significantly as compared to the prior year due primarily to the decision by Wal-Mart to discontinue purchasing, effective Spring 2013, from the Company two microwave oven products sold throughout fiscal year 2013 by the Company to Wal-Mart, the last shipments of which were made in February and March 2013, and intense competition, including downward pricing pressure, within all of our product categories. We expect these factors to affect our year-over-year comparisons throughout the remainder of fiscal 2014. The Company seeks to implement pricing and product strategy initiatives to improve the Company’s results of operations, although there can be no assurance that such initiatives will be successfully implemented or have the desired effects on the Company’s results of operations and financial condition.”

Personally, I had very little in the way of its products. I sort of remembers emerson turntables from way back. I found a really pretty one as you can see above. I think it even plays ’78’s!