will billabong end up like mambo?

Billabong is going through what Mambo went through years ago. Its brand value has deteriorated due to poor quality product and changing consumer taste.

? Its balance sheet is stretched
? The cash flows being produced are inadequate for such high levels of debt.
? Its level of debt in fact is increasing when its earnings are going backwards.
? Inventory is building because they cannot sell what they produce.

My assumption for today?s price move was short covering, retail investors getting in on the back of a ?buy recommendation? by UBS and other houses that try to pump up the price to get there fundies and clients out and/or a possibility of a capital raising. Judging by the cash flow and the level of debt, they definitely need cash to keep operating. That is all.