Chairman Robinson has turned out to be Mickey Mouse rather than Mickey Mantle. After receiving a gift from CVS (former Melville) in the way of cash cow Meldisco and an overly conservative capital structure, Mickey and the gang have not figured out how to take all that capital and turn it into additional value for their shareholders.It's largest division, Meldisco has little ability to leverage sales, based on their cost structure agreement with KMART and lackluster comp store sales performance over the last five years. High flyer Footaction has hit the skids as the gang in the ivory tower in Mahwah were slow to react when kids became fed up with $1,000 Shaq high five slama jama super duper basketball shoes and moved over to the $9.99 Chuck Taylor special. (Has Footaction chairman, Ralph Parks lost his touch).It became clear that these high paid bonus babies (check out their last proxy) do not have the answers on how to use their capital to invest in their operations and add shareholder value, when they announced their second stock repurcase program since going public.For you shareholders that bought at below $24 per share this may be the best refund in retail. For you shareholders that bought over $40, look at this as wise tax planning.
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