Alco Stores Inc (ALCS): Michael Price Sells All His Shares

Is it time to get rid of Alco Stores Inc (NASDAQ:ALCS) shares or is Michael Price freeing funds for other investments? According to a recent filing with the Securities and Exchange Commission, MFP Investors has closed its position in Alco Stores Inc (NASDAQ:ALCS), selling the 264,919 shares it held at the end of the second quarter. On September 4, the company announced that Director Stanley Latacha assumed the position of interim Chief Executive Officer as the company struggles to turn itself around.

Michael Price

Among the funds that we track, only GRT Capital Partners has a stake in Alco Stores Inc (NASDAQ:ALCS), although it is a minor one. During the second quarter, the fund’s managers, Gregory Fraser, Rudolph Kluiber and Timothy Krochuk, have decreased their investment by 15% to 15,350 shares valued at $117,000.

A regional retailer in the United States, Alco Stores Inc (NASDAQ:ALCS) has seen its stock tumble off the cliff following the 2008 credit crunch. The stock took another beating after the company announced less than flattering financial results for the second quarter of the 2015 fiscal year. Net sales dropped by 6% to $110.7 million, compared to the $117.7 million reported for the Q2 of 2014 fiscal year. Gross margin fell by 15% to $31.6 million and the company has reported a loss per share of $2.15, in contrast to earnings of $0.25 per share for the second quarter of the 2014 fiscal year.

Stanley B. Latacha, Alco Stores Inc (NASDAQ:ALCS)’s Chief Executive Officer commented:

“ALCO is working hard to develop and implement a turnaround plan. While our new board of directors and I have been in place with the Company for only three weeks, we are wasting no time addressing the operational needs of the business as well as analyzing strategic alternatives for the Company, including overhauling our balance sheet and evaluating options for raising additional capital. We are in the process of developing a strategy with our key financial stakeholders, including existing lenders, vendors, stockholders and landlords to create a long-term solution.”

Michael Price is still betting on Hess Corp. (NYSE:HES), although he has chosen to trim his stake in the company during the second quarter of 2014. As reported in its latest 13F filing, MFP Investors has control over 780,000 shares valued at $77.1 million. Price has also stepped up his interest in Dolby Laboratories, Inc. (NYSE:DLB), increasing his investment by 26%. His fund currently holds 702,500 shares reportedly worth $30.3 million.

Disclosure: none.