PFSweb, Inc. and its subsidiaries engage in the development and deployment of integrated business process outsourcing services in the United States, Canada, and Europe. The company offers professional consulting; technology collaboration; managed Web hosting; Internet application development; order management; Web-enabled customer contact centers; customer relationship management; financial services, including billing and collection services and working capital solutions; information management; facilities and operations management.
Earnings come out on MOnday Aug.15th by 11am. Keep on watch.
TARGET: $5 BY YEAR END
PROFITABLE WITH $550M REVENUES IN 2006...$16M IN CASH. LESS THAN $50M IN MARKET CAP???
PFSW will report its 4Q 2005 ended December 31, 2005, and FY 2005 financial results next week. Current guidance calls for a profitable 4th quarter 2005.
In 2006, PFSW revenues will grow profitably over 30% to $550M++ with the recent e-cost acquisition. Current market cap is less than $50M !!!!
On February 1, 2006, PFSweb (Nasdaq: PFSW), a global provider of integrated business process outsourcing (BPO) solutions, and eCOST.com Inc., a leading online discount retailer, announced the completion of a definitive merger agreement.
eCOST.com is now a wholly owned subsidiary of PFSW.
Here's the merger announcement:
http://biz.yahoo.com/bw/060201/20060201005347.html?.v=1
COMBINED COMPANY HIGHLIGHTS:
- Total revenues: $500M - $600M
- Estimated forward revenue growth: 10%/year
- Estimated forward net income: 1 - 2% of revenues or $5M - $12M/year
- Total Outstanding shares: 41.4M
- Current P/S ratio: About 0.1
- Strong balance sheet: $16M cash and $7M total debt
The above estimates assume that the companies will achieve a $4M -$5M/year is cost savings through improved efficiencies and resource optimization.
Should the goals of the merger materialize, PFSW offers and attractive investment opportunity under $2/share.
For more information, refer to the merger presentation slides and audio below:
http://www.pfsweb.com/assets/PDF/PFS...ger-CCpres.pdf
http://www.integratir.com/overview.a...fsw&title=null
ABOUT PFSW:
PFSweb is an outsourcing solutions global provider of logistics, fulfillment, customer care, and leading-edge technology infrastructure. Here are some of the services offered by PFSweb:
PFSweb Outsourcing & Supply Chain Solutions
Logistics & Fulfillment Supply Chain Management
Web Commerce
Customer Care & CRM Facility Operations & Management (FOM)
Transportation Management
Payment Processing & Financial Services Product Recall
Sales & Marketing Services
International Expansion
Aftermarket & Service Parts Solutions
ABOUT e-COST:
eCOST.com is a leading multi-category online discount retailer of high-quality new, "close-out" and refurbished brand-name merchandise for consumers and small business buyers. eCOST.com markets over 100,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, HP, Nikon, Onkyo, Seiko, Sony, and Toshiba primarily over the Internet (http://www.ecost.com/) and through direct marketing.
.............. DO YOUR DD
I don't know if anyone is paying attention to this one, but at these prices it is hard to imagine a downside based on the fundamentals of the company.
I am buying more today.
With earnings coming up next week. This one will pop as soon as the earnings date is announced. Radar it.
This one moves real fast because those corcked MMs know that there is a lot of interest in the stock under $1.6 or so.
Wow!!
This one is a real rocket. It just zoomed 10c in a nano second.
PFSW will report its 2Q 2006 ended June 30, 2006 financial results on August 14, 2006. The June quarter is seasonally the strongest quarter for PFSW.
$550M YEARLY REVENUES ...$16M IN CASH ....... LESS THAN $50M IN MARKET CAP
TARGET: $5 in 2007
On February 1, 2006, PFSweb (Nasdaq: PFSW), a global provider of integrated business process outsourcing (BPO) solutions, and eCOST.com Inc., a leading online discount retailer, announced the completion of a definitive merger agreement...eCOST.com is now a wholly owned subsidiary of PFSW.
COMBINED COMPANY HIGHLIGHTS:
- Total revenues: $500M - $600M
- Estimated forward revenue growth: 10%/year
- Estimated forward net income: 1 - 2% of revenues or $5M - $12M/year
- Total Outstanding shares: 41.4M
- Current P/S ratio: About 0.1
- Strong balance sheet: $16M cash and $7M total debt
The above estimates assume that the companies will achieve a $4M -$5M/year is cost savings through improved efficiencies and resource optimization.
ABOUT PFSW:
PFSweb is an outsourcing solutions global provider of logistics, fulfillment, customer care, and leading-edge technology infrastructure. Here are some of the services offered by PFSweb:
PFSweb Outsourcing & Supply Chain Solutions
Logistics & Fulfillment Supply Chain Management
Web Commerce
Customer Care & CRM Facility Operations & Management (FOM)
Transportation Management
Payment Processing & Financial Services Product Recall
Sales & Marketing Services
International Expansion
Aftermarket & Service Parts Solutions
ABOUT e-COST:
eCOST.com is a leading multi-category online discount retailer of high-quality new, "close-out" and refurbished brand-name merchandise for consumers and small business buyers. eCOST.com markets over 100,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, HP, Nikon, Onkyo, Seiko, Sony, and Toshiba primarily over the Internet and through direct marketing.
AP
Volume Spikes: TELK CTIB ZICA PFSW
Tuesday December 26, 1:14 pm ET
Telik Trades More Than Usual After Missing Goals of Late-Stage Trial
NEW YORK (AP) -- The following companies showed unusually heavy volume in Tuesday afternoon trading on the Nasdaq Stock Market. Higher-than-normal volume can indicate increased activity by institutions such as mutual funds and insurance companies. Upward stock movement on such volume can show higher investor confidence, while selling can signal pressure on a stock.
Trading volume of Telik Inc. increased more than 36 times its usual level, to 24.6 million, after the drug maker said its lead drug candidate did not meet goals of a late-stage trial.
The company's Telcyta cancer drug candidate did not demonstrate statistically significant improvement in overall survival in two late-stage trials of cancer patients, Telik said.
Shares fell $11.41, or 70.2 percent, to $4.84, after earlier trading at a new 52-week low of $4.69.
CTI Industries Corp., which makes decorative balloons, traded 1.2 million shares, compared with usual daily volume of 55,300 shares, on no immediately available news.
Shares added $1.33, or 33.7 percent, to $5.29.
ZI Corp., which makes text-prediction software for wireless handsets, traded more than usual for the second trading day following the launch of its Qix service for certain T-Mobile and Nokia phones.
Investors bought and sold 4.3 million shares by midday, far higher than the average volume of 125,400 shares. The stock rose 97 cents, or 55 percent, to $2.75, and earlier hit a new annual high of $2.83.
PFSweb Inc., a supplier for International Business Machines Corp., traded nine times more than usual, with 1.8 million shares changing hands. About 27 percent of those trades occurred in large blocks, which indicates institutional trading. There was no other immediately available news to explain the accelerated trading.
Shares added 9 cents, or 9.2 percent, to $1.07.
*****************************************
Institutional buying A+
Technicals
Percentage Gainer
Last Price Quote is:
22.96%above 13-day MA
34.82%above 50-day MA
RS Rating: 97
Fundamentals
Key Data:
Market Cap (M): $32.05
P/E Ratio: 48.89
PEG Ratio: N/A
Next Earnings: 04/05/2007
Last Analyst Rating: LT Buy
Today's closing chart........
hmm.. this one looks interesting.
When looking at getting in this, are you looking at entering in at the 200EMA or what one would be best when looking at a chart like this? At least on the technical side?
I like the 9ema. PFSW has been holding above that. If PFSW retreats to the 20ma it is less hot. :D
Quote from: lancefur on January 08, 2007, 11:38:29 AM
When looking at getting in this, are you looking at entering in at the 200EMA or what one would be best when looking at a chart like this? At least on the technical side?
For me the chart should show me a healthy rise in volume. If you notice the 50 and 200 day MA are also racing towards each other. I would definately looking at that golden cross. (-;
I think I am not sure how to take either one of these charts. In one I am looking at relates to the share price crossing the 20 MA and the other looking at the 50MA crossing the 200MA. The golden cross hasn't happened but the other one has. Based on that, what can one infer?
DUTTON REPORT 12 sides price target 2$ (attached for downloading) and updated chart
cheers
O.
I'm looking to take a position in PFSW soon, MACD is about to cross and going over 0, looks bullish and could be a good risk/reward play here imo!
Bought PFSW @ 1.15
Melf, can you 'shine your light' on this one please?! ;)
Now that the almighty Golden Cross was achieved within the past 2 weeks, when is this going to just BOOM? I know the correction was necessary but looking forward to an explosion real soon and the continuation of the bull trend.
PFSW is priced for extinction, trading at roughly 1/10 of its annual revenues. That is, the current market cap is $45 M and the company had revenues of $423 M in 2006 and expects just a bit more than that for 2007, according to the full year guidance it gave over its Q1 earnings presentation:
«We continue to maintain our consolidated revenue target of $420 to $435 million and an Adjusted EBITDA target of $8-$10 million for calendar year 2007," stated Mark Layton, Chief Executive Officer of PFSweb.»
This apparent undervaluation happened because everybody (myself included) thought the company's eCost division would drag the company down to bankruptcy, because ecost.com revenues were shrinking and losses were mounting. PFSW's balance sheet was getting too weak, showing "just" $14 M in cash and equivalents and a current ratio of just 1.18.
But, and this is a big BUT, the company was able to turnaround ecost.com quite dramatically, with a 20% surge in sales expected for Q2 2007 when compared to Q1 2007:
• PFSweb Announces Preliminary Second Quarter Sales For eCOST.com (http://biz.yahoo.com/bw/070709/20070709005621.html?.v=1)
Business Wire (Mon 8:00am)
ecost.com, which was seen as a "possible bankruptcy red flag", will now be seen as a "major growth engine for PFSW".
I expect this sentiment shift to produce no less than 50% return over the next 6 months. If the turnaround gets traction and PFSW is able to achieve revenue CAGR of 10% over the next three years, and turn a negative net profit margin of -2.13% into a positive 3% net profit margin, then I would expect PFSW to be a almost a 10 bagger from current levels.
Computing my valuation model with these estimates I get to the most attractive situation I've ever found, in terms of estimated share price CAGR:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=38789;image)
Technically PFSW is about to make a bullish breakout of a 6 month consolidation period:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=38790;image)
I already bought this stock yesterday for the Video Portfolio, at www.stocksonvideo.com and I would like not to have the same holdings in both portfolios (in order for some of you, like realcoolhead, to be able to diversify your investments throughout 20 different holdings), but this opportunity is too good not to buy the stock also for the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php). And for the 3 Stocks on Fire Portfolio (http://www.3stocksonfire.org/3stocksonfire_3sof.php) too, for that matter, PFSW will replace GIGM in that portfolio.
The Trading Plan is:
Buy PFSW.
David, on June 15 the BOD was granted discretionary approval to effect a reverse split.
Quote from: th0masss on July 10, 2007, 07:19:47 AM
David, on June 15 the BOD was granted discretionary approval to effect a reverse split.
I know th0masss, not a problem, as it doesn't have any effect in the company's value. If PFSW's market cap goes from $45 M to say, $200 M, it doesn't matter if that means the share price going from $1 to $4 or from $5 to $20. It's the same thing.
They'll probably do the reverse split to maintain the Nasdaq listing.
But thanks anyway :)
So GIGM is to remove from the 3SOF portfolio?
May be I missed something...
Nice pick David, glad to have you in this one!
BTW...not to play editor here but the spelling in English is Phoenix. ;)
Quote from: terainvestment on July 10, 2007, 10:18:30 AM
So GIGM is to remove from the 3SOF portfolio?
May be I missed something...
Yes, the 3 Stocks on Fire Portfolio is composed by the three stocks with the highest share price CAGR given by my valuation model, and the top three holdings (that is, the ones where I expect the highest return - coupled with high volatility, because they're such small caps) currently are CIMT, GSCP.OB and PFSW.
But, of course, this doesn't mean you should sell GIGM, or that I think GIGM won't go up a lot, I believe in GIGM exactly the same way I did previously.
My recommendation is for anyone to hold all holdings of the Main Portfolio, which is a well diversified, low risk portfolio.
Quote from: ygtrdr on July 10, 2007, 10:26:12 AM
Nice pick David, glad to have you in this one!
BTW...not to play editor here but the spelling in English is Phoenix. ;)
Thanks ygtrdr :) "Phoenix"? What a complicated way to write "Fenix". Well, you English/American people can't always do it the shortest and smartest way ;D Let me correct the title, thanks.
Hi David,
Good to see this one back. I never sold it. Is there a reason why you started a new topic. May be a good idea to combine with the previous one
http://www.3stocksonfire.org/trading/index.php?topic=8895.0
Amarens
Quote from: Amarens on July 10, 2007, 11:31:22 AM
Hi David,
Good to see this one back. I never sold it. Is there a reason why you started a new topic. May be a good idea to combine with the previous one
http://www.3stocksonfire.org/trading/index.php?topic=8895.0
Amarens
hehe, it looks like you never sell anything Amarens :) I wonder if you still got JASO, what a miss there ???
I don't know, I felt like starting a new thread (I thought I never held PFSW in the Main Portfolio, just the Fire, but I see now that I did). When I close this trade I'll merge the two threads at the Previous 3 SOF Picks message board, how's that sound?
Quote from: David Randolph on July 10, 2007, 10:35:03 AM
Thanks ygtrdr :) "Phoenix"? What a complicated way to write "Fenix". Well, you English/American people can't always do it the shortest and smartest way ;D Let me correct the title, thanks.
C'mon be phaire David .. English spelling is really simple.
Here's a little poem to help you remember:
I take it you already know
Of tough and bough and cough and dough?
Others may stumble but not you
On hiccough, thorough, slough and through.
Well done! And now you wish perhaps,
To learn of less familiar traps?
Beware of heard, a dreadful word
That looks like beard and sounds like bird.
And dead, it's said like bed, not bead-
for goodness' sake don't call it 'deed'!
Watch out for meat and great and threat
(they rhyme with suite and straight and debt).
A moth is not a moth in mother,
Nor both in bother, broth, or brother,
And here is not a match for there,
Nor dear and fear for bear and pear,
And then there's doze and rose and lose-
Just look them up- and goose and choose,
And cork and work and card and ward
And font and front and word and sword,
And do and go and thwart and cart-
Come, I've hardly made a start!
A dreadful language? Man alive!
I'd learned to speak it when I was five!
And yet to write it, the more I sigh,
I'll not learn how 'til the day I die...... well, maybe disregard those last few lines. ;D ;D
I feel jilted when I see what JASO has done to us! I suspected it would go up due to the "hotness" of the solar panel market and buzz around it. JASO also did not give in much when the market had a correction.
David, do you think it's just a hype around JASO and TSL or we can get back in once the prices retreat from the peaks? According to EPS and the PEG numbers, JASO seems to be valued properly and TSL a bit below.
Thanks.
Quote from: berloga on July 10, 2007, 12:00:30 PM
I feel jilted when I see what JASO has done to us! I suspected it would go up due to the "hotness" of the solar panel market and buzz around it. JASO also did not give in much when the market had a correction.
David, do you think it's just a hype around JASO and TSL or we can get back in once the prices retreat from the peaks? According to EPS and the PEG numbers, JASO seems to be valued properly and TSL a bit below.
Thanks.
Yes, JASO was terrible. I'll remember it the next time I feel outraged by the market cap not being the one I initially thought. These Chinese, Indian and Brazilian stocks have this habit of having ratio's between the ADS's and the shares that aren't always apparent, not even to a person that reads their entire IPO prospects or 10-K's.
For a good example go check ACH's thread at www.stocksonvideo.com. Square7, a quite knowledgeable investor, was holding 3,000 shares of ACH, or more than $120,000, and thought the market cap was 1/4 of what it actually is.
Anyway, coming back to JASO and TSL, my feeling is there's a lot of hype involved in the solar sector, but also undoubtedly there will be huge demand, due to the cost of oil and environmental concerns. It's hard to know, the Chinese can always dilute the stocks so much that an excellent business can be a bad investment (example: XING).
I guess that at this stage I would be more interested in finding some more about ASTI's technology, as a way to participate in the future of the solar market. Of course, there's that warrants issue that keeps it under $11, but someday the value will be so high that the stock will breakout above $11 for good.
I hesitate between going for what is "in play", or "in fashion", instead of looking for more undiscovered parts of the market.
Anyway, these were my thoughts on the subject, got to go pick up my kids, see you later.
PFSW was setting itself up for a 10% plus day yesterday, but the general market weakness brought in late day sellers. Perhaps there will be a pullback to $0.97 or so to retest the broken resistance, I don't know.
But I know the surge in www.ecost.com sales is fundamentally very significant, as we've seen in the initial recommendation. We know there will be good news when the company reports 2nd quarter earnings, at least that is almost a certainty now.
I think the fundamental landscape is a lot more solid now than what it was at the stock's previous run up, when it doubled in about a month, going from a low of $0.7 to a high of $1.44. I say this because back then all we had were expectations and analyst's recommendations, now we have a solid 20% sequential revenue growth at the company's most problematic unit (the rest of the business has been doing fine - we'll study that over the next few updates).
I'll continue holding PFSW.
Insiders are fully aware that PFSW's fundamental turnaround is for real, look how they exercised options to buy shares at $0.95, when the stock was trading below that level:
SEC forms for PFSW (http://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=PFSW&filenum=&State=&SIC=&owner=include&action=getcompany)
Technically the stock "paused" yesterday. Perhaps it will pullback a bit more to close the gap between $0.97 and $0.99 (it just needs to print $0.98), but it is really impossible to know for sure.
Over the medium term, the stock will probably continue to move higher discounting much better than expected 2nd quarter results. I'll continue holding PFSW.
Quote from: David Randolph on July 10, 2007, 11:36:10 AM
hehe, it looks like you never sell anything Amarens :) I wonder if you still got JASO, what a miss there ???
Looks like I don't doesn't it :-[ :P. Unfortunatly I do, JASO for instance, I did sell that one. PFSW and some others like SYX are missers. Just too late and still learning to take (even bigger a day later) losses :-\ :-\. In some cases it also worked out great but mostly not. Looking at my portfolio, everyday I'm faced with the question do I take 30-40-50% or more loss or do I still wait. I don't need the money, it does not worry me therefore and so I hold on...even tough my common sense tells me I good have made up for the losses if I had taken them and moved on...so I just should!
The stock market acquires attention every day. Sometimes that does not work for me, running a company or being on the road. And it seems important shifts always take place on those moments >:( and I read a day later...
Amarens
QuoteLooking at my portfolio, everyday I'm faced with the question do I take 30-40-50% or more loss or do I still wait. I don't need the money, it does not worry me therefore and so I hold on...even tough my common sense tells me I good have made up for the losses if I had taken them and moved on...so I just should!
You need to understand that fundamentals change and many companies go down and never recover ... and some of them just go bankrupt. Moreover, a stock can be valued at more at, say, $2 than at $10, because the # of shares outstanding rose more than 5 fold. So you need to protect your capital by recognizing mistakes and take your losses when you have to.
You don't need the money, but of course, you value the money, right? So, you don't want to lose it, you want it to grow.
QuoteThe stock market acquires attention every day. Sometimes that does not work for me, running a company or being on the road. And it seems important shifts always take place on those moments >:( and I read a day later...
That's why you subscribe this service, so you don't have to worry or spend too much time studying the markets. You're able to concentrate on your personal life and your profession.
Look at the Main Portfolio ... pushing up to all time highs, up 25% in 2007 ;)
Are you telling me you don't have time to read the e-mail with the crystal clear instructions before the market opens and act accordingly? I don't think so ... you just need to be more pro-active and cut those losses away and never look back. Then start following the Main. That's what I work for, it's the service I provide. You do what you do best, and I do what I do best (even though I make mistakes, many times stupid mistakes, on balance and with time, things work out, because I have the experience and the willingness to work hard to achieve the results).
Thanks for your message Amarens :)
Exactly. I usually just look at the email and if nothing is changed, I don't even look at each thread anymore. ;D
My return is "only" about 70% of the return of main portfolio, because initially I only dedicated 60% of the account following the main and the rest goes to SPY. I don't regret it because I figured that's the kind of volatility/risk I can take. That helps when things didn't go well temporarily because instead of going down 3% in one day, mine only went down less than 2%... and when some of you guys were kind of panicking, I slept well. In the long-run, I think emotional well-being is an important parameter in the game of investing. After David started the video portfolio, I liquidated half of SPY. So now I have 80% dedicated and more diversified. :) (maybe not exactly 80% because I didn't double-down on PFSW ...)
Anyway, I'd say I only need maybe half an hour per day following David and I can spend the rest of day doing other things. (Well I am going to China for a 3-week vacation next week so I will have to take some golden party hour out checking emails ... and following video portfolio will be a bit difficult since that means waking up 3:30am in China ... then again it really doesn't matter much in the long-run even if I trade one day late, that's the beauty of keeping things simple and for long-haul!)
Quote from: David Randolph on July 12, 2007, 11:32:22 AM
That's why you subscribe this service, so you don't have to worry or spend too much time studying the markets. You're able to concentrate on your personal life and your profession.
Look at the Main Portfolio ... pushing up to all time highs, up 25% in 2007 ;)
Are you telling me you don't have time to read the e-mail with the crystal clear instructions before the market opens and act accordingly? I don't think so ... you just need to be more pro-active and cut those losses away and never look back. Then start following the Main. That's what I work for, it's the service I provide. You do what you do best, and I do what I do best (even though I make mistakes, many times stupid mistakes, on balance and with time, things work out, because I have the experience and the willingness to work hard to achieve the results).
Thanks for your message Amarens :)
QuoteExactly. I usually just look at the email and if nothing is changed, I don't even look at each thread anymore. ;D
Ohh, I get a lot of work writing those updates, and sometimes some interesting stuff comes up. Anyway, it's nice to know that your trust is at that level :)
QuoteMy return is "only" about 70% of the return of main portfolio, because initially I only dedicated 60% of the account following the main and the rest goes to SPY. I don't regret it because I figured that's the kind of volatility/risk I can take. That helps when things didn't go well temporarily because instead of going down 3% in one day, mine only went down less than 2%... and when some of you guys were kind of panicking, I slept well. In the long-run, I think emotional well-being is an important parameter in the game of investing. After David started the video portfolio, I liquidated half of SPY. So now I have 80% dedicated and more diversified. Smiley (maybe not exactly 80% because I didn't double-down on PFSW ...)
Anyway, I'd say I only need maybe half an hour per day following David and I can spend the rest of day doing other things. (Well I am going to China for a 3-week vacation next week so I will have to take some golden party hour out checking emails ... and following video portfolio will be a bit difficult since that means waking up 3:30am in China ... then again it really doesn't matter much in the long-run even if I trade one day late, that's the beauty of keeping things simple and for long-haul!)
I thought you had mutual funds, but indeed, the SPY is a much better idea, since the majority of the mutual funds underperforms the index over the long term, and they charge fees for their underperformance ;D
Going back to PFSW, I don't have much time to make new research for it today, but there's no doubt that the company will release better than expected results in Q2 and that's certainly not priced in. There's more visibility and attractiveness now that the stock is at $1.03 than 6 months ago when it was at $1.4.
I'll keep holding PFSW.
Quote from: realcoolhead on July 12, 2007, 12:30:43 PM
then again it really doesn't matter much in the long-run even if I trade one day late, that's the beauty of keeping things simple and for long-haul!)
That is why I subscribe to this service :) :) :) and I love it. But indeed sometimes it happens a day goes by without email, meetings etc. And then I discover a day late and believe me Realcoolhead that can make a difference (SFP, HYRF, EYII, HEPH, SATC to mention some). If that happens now I just take the even bigger loss. But for a couple I just wait and see. The losses are so huge, I might as well.
And yes David I do value money and don't want to loose it and do bump out, but it won' t make me enjoy life less. That's all I wanted to say.
But once again you helped me over the obstacle and next week I'll sell some of the onces I don't see recovering anymore and in which is still too much money to see it all go away.
Amarens
Hi Amarens, from your holdings I see that your problem is holding stocks regardless of the fundamentals. Also you didn't pay attention to the change in the # of shares outstanding, which is crucial, especially when considering OTCBB traded stocks.
Good luck in your evaluation :)
Two sentences out of PFSW's 10-Q report that seem interesting to me:
1) «Sales of HP and HP-related products represented 51% of eCOST's net revenues (11% of consolidated net revenues) in the three months ended March 31, 2007. Sales of these products in the two month period ended March 31, 2006 were 31% and 6% of eCOST's net revenues and consolidated net revenues, respectively.»
So, HP is the primary sales driver of www.ecost.com. And HP has been selling well, as everybody knows, HP is near an all time high now.
2) «Our eCOST business is moderately seasonal, reflecting the general pattern of peak sales for the retail industry during the holiday shopping season. Typically, a larger portion of our eCOST revenues occur during the first and fourth fiscal quarters.»
This 2) only reinforces the importance of the 20% sequential revenue growth ECost achieved in Q2 2007, according to the company's 2nd quarter guidance:
• PFSweb Announces Preliminary Second Quarter Sales For eCOST.com (http://biz.yahoo.com/bw/070709/20070709005621.html?.v=1)
Business Wire (Mon, Jul 9)
They did it in a seasonally weak period.
My hands are getting stronger and stronger in PFSW, I'll keep holding the stock.
Not much to say about PFSW today (also I'm short on time), I'll continue holding.
Did I tell you about that little gap opened in PFSW's chart? Well, the stock came down to close the damn thing. Fundamentally nothing changed, over the medium term the only way is up.
I don't know how someone can sell a stock priced at 1/10 of annual sales after the following news:
«eCOST.com expects to report revenue of approximately $26 million for the second quarter of 2007. On a sequential basis, revenue increased from $21.6 million for the first quarter of 2007 and $21.1 million for the fourth quarter of 2006.
"eCOST.com's second quarter sales have noticeably increased quarter-to-quarter, and we believe that the quarter-to-quarter comparison is a key measurement of our turn-around progress. Further, we believe this quarter's revenue growth will contribute to an improved bottom-line result for eCOST.com as compared to the prior two quarters," stated Mark Layton, Chairman and CEO of PFSweb. "The continued positive trends that eCOST.com has experienced so far this year offer initial verification that the changes we have implemented are working. These changes include improved customer service, enhanced web site functions and an expansion of the number of available products to more than 100,000 SKUs in a wider variety of categories."
I'll continue holding PFSW with strong hands.
I read on Systemax's website that the company has about 40,000 items for sale in any given day. Well, eCost has 100,000 items for sale :o
It doesn't mean www.ecost.com will sell more than www.tigerdirect.com, but at least it is offering more. I own both stocks, so no bearish comparisons to make, as we know, SYX is profitable and PFSW isn't, at least, not yet. Also SYX is a $760 M market cap and PFSW is a $46 M market cap, so the differences are well represented in both companies value.
I'll keep holding PFSW, I'm a believer it its turnaround story.
Ok. I have had a chance to research the company. I see why you have bought the stock. You are counting on a turn-around in eCost. That is a supportable basis. As you said, eCost is planning on Q2 revenue of $26,000,000. http://biz.yahoo.com/bw/070709/20070709005621.html?.v=1
That is higher than Q1 and Q406, which are the seasonably strong quarters. And, an analyst at the last conference call suggested that the breakeven point for eCost was $25,000,000. See page 15 of http://www.sec.gov/Archives/edgar/data/1095315/000095013407011848/d46869exv99w1.htm So, we can see the eCost segment being profitable for the year. In contrast, Q1 eCost revenue was $21,647,000 and had an operating loss of $1,326,000. See page 15 of http://www.sec.gov/Archives/edgar/data/1095315/000095013407011678/d46626e10vq.htm
The real issue is whether the new profitability of eCost will make up for the continuous losses in PFSWeb. That segment has historically lost money ($1.6 million, last quarter on operating basis). The merger with eCost occured in late 2005.
http://www.sec.gov/Archives/edgar/data/1095315/000095013405022354/d30843e8vk.htm
http://www.sec.gov/Archives/edgar/data/1095315/000095013406001028/d32319exv99w1.htm
Before then, net income for PFSW was mostly negative:
Net Income ($.000s)
Q298 164
Q399 (198)
Q499 (4,777)
Q200 (238)
Q300 (6,465)
Q400 (1,861)
Q101 (2,192)
Q201 1,903* (from one time sale of assets)
Q301 (453)
Q102 (3,227)
Q202 (2,408)
Q302 (4,694)
Q103 (1,774)
Q303 467
Q303 (1,141)
Q104 (1,767)
Q204 479
Q304 420
Q404 1,100
Q105 (214)
Q205 (546)
Q305 (453)
Q405 466
So, I remain skeptical whether PFSW will start showing a profit anytime soon. The last time an insider (the CEO) purchased shares on the open market was preceeding the Q405 earnings release, which was the last profitable quarter:
http://www.sec.gov/Archives/edgar/data/1095315/000120919105063958/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105063509/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105063247/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105062903/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105062610/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105062347/xslF345X02/doc4.xml
http://www.sec.gov/Archives/edgar/data/1095315/000120919105061944/xslF345X02/doc4.xml
I will wait for that sign.
Amarens
man I am sort of in the same boat in regards to my losses. except I do need the money. :'(
David
so since I only have 3 you really think changing out of TZOO for PFSW is a better trade?
I need all the help I can get to try to recoop my now 25% loss due to TZOO and CIMT not helping me at all.
Thanks.
Of all the holdings on the main the ones I would keep if your looking for quicker gains would be NGA and CIMT. I realize you may be down on CIMT, but now would be a foolish time to sell since the next earnings report will be coming out sometime in August. I cannot see CIMT going down any further since the company has been improving and has had more time to sell its new version 8 software. As for NGA, it has a nice improving chart and moves really fast just like GOAM and we are on the verge of a breakout. On Friday while the market was down 150 points, NGA managed to close only a penny down. Keep an eye on it and when it breaks 10.19, it will probably make a run to 11 + in a hurry! I also expect earnings to be released around the last week of July and this company has been making progress quarter after quarter. I hope this helps.
QuoteOk. I have had a chance to research the company.
Cool buddjas1, I love your research, you really go deep :)
QuoteYou are counting on a turn-around in eCost. That is a supportable basis.
Not just that, but that's the primary reason.
QuoteThe last time an insider (the CEO) purchased shares on the open market was preceeding the Q405 earnings release, which was the last profitable quarter:
But, just recently, the CEO and other insiders took the option of converting options at the $0.95 level. This is like the company asking: "Do you want to buy these newly issued shares at $0.95? Yes I do, here's the money". I agree, not the same thing as buying existing shares in the open market, but he could have said "no, I'll consider it later".
The company gave us a guidance, over the 1st quarter earnings press release, that if achieved, I believe will make the company profitable right here right now in 2007:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=39179;image)
They never had EBITDA of $9 M. What do you think of this guidance?
At the time I read the 1st quarter earnings press release I didn't realize who Riverbed (RVBD) was, but now I know that company well and the way it has been growing and the way it is priced by the market. I'm quite pleased to see that RVBD is one of PFSW's costumers:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=39180;image)
I love it when I see RVBD's name associated with another company ... GSB is another example, because it competes with RVBD in the Wide Area File Sharing (WAFS) market.
We'll keep studying PFSW, I'll keep holding.
QuoteDavid
so since I only have 3 you really think changing out of TZOO for PFSW is a better trade?
Yes, definitely a better trade, but also somewhat risky, I mean, there isn't a lot of visibility in PFSW yet and the chart still isn't bullish. The trade I would advise you to do but I believe you won't be able to do it because of your inner beliefs about the market is to switch TZOO for GSB. Can you do it? If you can't, tell me why not. Thanks :)
no problem doing it.
and thanks.
Quote from: pinoleropuro on July 23, 2007, 08:47:58 AM
no problem doing it.
and thanks.
Thanks for your reply pinoleropuro. I would use any dip in GSB to buy for the long term. Good luck :)
PFSW is doing all it can to improve www.ecost.com business:
«- Opened a new 6,500 square foot facility in Manila, Philippines, with a dedicated staff of highly trained customer service representatives to supplement PFSweb's existing call center operations in the U.S. The facility will initially be used to support certain functions for eCOST.com. Also located at the facility will be an expanded staff of web development professionals. The additional capacity will increase PFSweb's ability to quickly address development plans for its web commerce capabilities for both eCOST.com and its service clients.
- eCOST.com added 2 new Virtual Warehouses in the first quarter of 2007 bringing the total number of Virtual Warehouses to 9. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales.»
Technically we've had a nice 3% rise yesterday. I'll keep holding PFSW.
I hope PFSW provides a nice lesson to us all, after it pushes 50% higher, which will be: "fundamentals often change a lot more than the stock price, and that gives an edge to the fundamental trader".
That would also mean that stock prices indeed are predictable, because stocks are priced inefficiently, at least temporarily.
But, it's still too early for this ... we'll see, I'll keep holding PFSW.
PFSW's fundamentals turned, but the stock didn't, at least not in a meaningful way. This could be happening because the stocks valuation already had the turnaround priced in, but that isn't possible with PFSW trading at roughly 1/10 of annual revenues, is it?
No, it's not, I don't think so. I believe PFSW was priced for extinction, as everybody thought, myself included, that ecost.com would face bankruptcy. Instead we know now the business is growing strongly, with revenues up 20% from the previous quarter.
Insiders were willing to buy shares at $0.95 just a while ago.
Given all this I believe it is just a matter of time for PFSW to start moving higher. I'll continue holding the stock.
This is one of those stocks that has taken such a beating the last five years that shareholders just want out at any opportunity. I have a feeling that it will take several positive quarters of growth to see any real gains. Reminds me of a BB stock.
Quote from: David Randolph on July 26, 2007, 07:50:21 AM
Insiders were willing to buy shares at $0.95 just a while ago.
The CEO has shares with a cost basis over $2.50, from purchases on the open market.
Quote from: buddjas1 on July 26, 2007, 10:40:00 AM
This is one of those stocks that has taken such a beating the last five years that shareholders just want out at any opportunity. I have a feeling that it will take several positive quarters of growth to see any real gains. Reminds me of a BB stock.
Yeah, you're probably right buddjas1. Unless the company posts a profit. If that happens there's no way to keep it so undervalued.
I'm quite confident in PFSW's management ability to make a profitable business over the long term. I mean, they were able to grow ecost.com sales by 20% from one quarter to the next. That's very significant in my view.
The market is ignoring the news, at least for now, which is odd. Probably the technical factors shown below and the general market bearish tone have been playing a role too. But I'm ready to hold this stock for the long term whatever happens to the share price over the short term, because I see the fundamentals improving as I write and inevitably a higher stock price will follow.
PFSW could/should improve www.ecost.com design, don't you think?
I enjoy the fact that Riverbed is one of PFSW's costumers, since that company is one of the fastest growing companies outthere (but its valuation already belongs to another planet). That should mean improved business for PFSW. When our company talked about Riverbed being one of its main costumers in Q1 earnings I didn't think it was all that important, but now ... I think it can be significant.
Probably not in 2007 yet, but in 2008 I expect PFSW to be profitable. Right here, right now, the stock should double and trade at 1/5 of annual revenue, instead of 1/10 of revenue like it is happening now.
I'll keep holding PFSW.
Nothing new for PFSW yesterday, I'm just leaving the updated chart.
PFSW is fighting head to head with CIMT for the place of "most attractive stock of the Main Portfolio". I would just need CIMT and PFSW to deliver on my long term expectations for the Main to achieve a very nice return.
We'll see what happens, cool 6.5% advance for PFSW today :)
PFSweb to Report 2007 Second Quarter Results on August 14th
Tuesday July 31, 7:31 pm ET
Management to Hold Conference Call at 11 am ET on August 14th
PLANO, Texas--(BUSINESS WIRE)--PFSweb, Inc. (Nasdaq: PFSW - News), today announced it plans to release financial results for the second quarter and six months ended June 30, 2007, before the market begins trading on August 14, 2007.
Management will host a conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on August 14, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 823-7459 and enter the pin number (9081135) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the Company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through September 14, 2007 at (877) 519-4471, pin number (9081135). The replay also will be available at the Company's website for a limited time.
http://biz.yahoo.com/bw/070731/20070731006601.html?.v=1 (http://biz.yahoo.com/bw/070731/20070731006601.html?.v=1)
so its good to buy some today with the premarket being down?
buying on a dip?
Quote from: pinoleropuro on August 01, 2007, 07:49:23 AM
so its good to buy some today with the premarket being down?
buying on a dip?
PFSW is a great long term holding in my view, but it doesn't correlate much with the general market. Anyway, as you can read at the "About the market slump yesterday" thread, I believe today's open will be the bottom (I risk saying it, but you know, tops and bottoms are almost impossible to predict, and I'm no market timer).
Let's just say the SPY hit a medium term support area and the candlestick pattern (stick sandwich) is quite reliable and indicates a reverse in the short term trend, from bearish to bullish. I wouldn't count on a very down open though, I think futures will be nearly flat when the market opens at 9:30 ET time.
Good luck :)
PFSw will report 2nd quarter earnings on August the 14th, and I expect them to be better than in the recent past, perhaps much better.
I don't know if buddjas1 is right or not, about the stock needing several positive quarters to make a real advance, but I have no doubts that PFSW is one of the cheapest stocks around and has a huge potential, if its fundamental turnaround is successful (early clues point that's going to be the case).
Constructive candlestick yesterday, let's see if the stock challenges $1.08 soon.
PFSW rose 5% yesterday, even though volume was low, at just 84,600 shares. We're very close to the all important $1.08 level now, I expect the stock to challenge it and ultimately break it on the upside. Then plenty of volume will show up, don't worry.
PFSW went down 5% yesterday, on very low volume of 59,900 shares changing hands, less than $60 K.
PFSW's investment is about a micro cap company turning itself around, I don't think the general US economy plays a definite role here. PFSW and ecost.com must grow its market share in the electronics online retailing business (and this industry needs to grow by taking market share from the brick and mortar retailers).
So, I expect that, even if the US consumer stays stagnant for a couple of years (by stagnant I mean without growing - not falling), it is possible and probable that online retailers will still grow their businesses and ecost.com will grow more than the industry, because it is turning around from a much smaller base.
I'll keep holding PFSW for the long term.
LOOKS LIKE PFSW WILL START MOVING UP.
MY TARGET IS $3+ BY FEBRUARY 2008
PFSW acting a bit aggressively today, looking good ;)
spexculito,
you posted to the existing thread, then today you create a new thread. ???
Please refrain from doing such things.
You are not one very adapt to doing what you are ask...why?
Become part of 3SOF...not a rebel ! ;)
"PFSW" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :( ::)
Thank You....and good luck with all your trades....make some $$$ ;) ;D
Quote from: tokyopua on August 07, 2007, 10:54:50 AM
PFSW acting a bit aggressively today, looking good ;)
Yeah :)
PFSW will probably challenge the $1.08 resistance level and hopefully it will make a bullish breakout when the company reports its 2nd quarter results on August 14. It should, given the fundamental turnaround.
I guess the way PFSW behaved while the general market was down is a clue that it will indeed head higher over the short and medium term. I'm also bullish for the long term.
No follow through in PFSW yesterday. An eventual bullish breakout of the $1.08 level will probably depend on the August 14th news, when the company reports 2nd quarter results.
I'll keep holding PFSW.
TARGET: $1.5+ AFTER EARNINGS on 8/14/2007
..........PFSW HIGHLIGHTS...............
- AMAZING eCOST DIV. TURNAROUND!!!
- $450M REVENUES
- $45M MARKET CAP
- STRONG BALANCE SHEET
- POISED TO RETURN TO PROFITABILITY
- On July 9, 2007 PFSW surprised the street by announcing that on August 14, 2007 its eCOST division will report $26 M in revenues for Q2 2007. This a 19.25% revenue growth from Q1 2007.
- In a previous CC management estimated that with its new cost structure, online retailer eCOST would be profitable when it reached $25M in revenues.
- The poor eCOST performance, after being acquired in early 2006, was the main reason for PFSW losses and poor stock performance. Prior to the eCOST acquisition PFSW traded North of $3.
- The eCOST turnaround is very timely as the strongest season for this division, the Holiday season, is coming up.
- The eCOST turnaround is due to a focused effort by management to improve its performance by improving customer service, product selection, marketing results, etc..
- In Q1 2007 PFSW predicted that for the whole group it expects to net EBITDA of $8 to $10M for 2007. PFSW reported an EBITDA of only $2.5M for 2006. This is a 300% to 400% improvement!!!
- In Q1 2007 PFSW reported EBITDA of $0.8M
- Based on the above, PFSW will have to average about $2.5M to $3.0M in EBITDA for 2Q, 3Q, and 4Q to meet its guidance for 2007 .
- Should PFSW report an EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 EBITDA loss of $0.7M by 500%.
PFSW generates about $450M/year in revenues and its market cap is only $46M!.
Fair value has been estimated to be $6 based on comparables should PFSW return to consistent profitability as it did prior to the eCOST acquisition.
PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.
ABOUT PFSW:
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, FLAVIA� Beverage Systems, Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd., and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST com brand markets approximately 100,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon, Onkyo, Seiko, Sony, and Toshiba primarily over the Internet and through direct marketing.
From Yahoo message board:
- On July 9, 2007 announced surprised the street by announcing that its ecost division will post $26 M in revenues in Q2 2007, a 19.25% revenue growth from Q1 2007.
- In a previous CC management estimated that with its new cost structure, eCOST would be profitable when it reached $25M in revenues.
- In Q1 2007 PFSW predicted EBITDA of $8 to $10M for 2007. PFSW reported $2.5M EBIDA for 2006. This is a 300% to 400% improvement!!!
- In Q1 2007 PFSW reported EBITDA of $0.8M
- Based on the above, PFSW will have to average about $2.5M for 2Q, 3Q, and 4Q 2007.
- If PFSW reports a EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 by a wide margin. In fact, PFWS might report its first profit in several quarters.
- PFSW 2Q 2006 reported a EBITDA loss of $0.7M due mostly to the very poor eCOST performance a revenue dropped and losses increased significantly. Net loss was $3.2M!!!
eCOST has been the main reason why PFSW has performed so poorly as a stock since it was acquired. PFSW has done an amazing job of turning around this division around as evidenced by the sequential improvement of the last 2 quarters.
The eCOST turnaround is due to improvements in several fronts including customer service, product selection, more efficient marketing, etc.. The turnaround is very timely as the strongest season for this division, the Holiday season, is right in front of us.
PFSW generates about $450M/year in revenues and its market cap is only $46M!.
Fair value has been estimated to be $6 based on comparables is PFSW can return to consistent profitability.
PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.
Quote from: babouk on August 10, 2007, 06:34:42 AM
From Yahoo message board:
- On July 9, 2007 announced surprised the street by announcing that its ecost division will post $26 M in revenues in Q2 2007, a 19.25% revenue growth from Q1 2007.
- In a previous CC management estimated that with its new cost structure, eCOST would be profitable when it reached $25M in revenues.
- In Q1 2007 PFSW predicted EBITDA of $8 to $10M for 2007. PFSW reported $2.5M EBIDA for 2006. This is a 300% to 400% improvement!!!
- In Q1 2007 PFSW reported EBITDA of $0.8M
- Based on the above, PFSW will have to average about $2.5M for 2Q, 3Q, and 4Q 2007.
- If PFSW reports a EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 by a wide margin. In fact, PFWS might report its first profit in several quarters.
- PFSW 2Q 2006 reported a EBITDA loss of $0.7M due mostly to the very poor eCOST performance a revenue dropped and losses increased significantly. Net loss was $3.2M!!!
eCOST has been the main reason why PFSW has performed so poorly as a stock since it was acquired. PFSW has done an amazing job of turning around this division around as evidenced by the sequential improvement of the last 2 quarters.
The eCOST turnaround is due to improvements in several fronts including customer service, product selection, more efficient marketing, etc.. The turnaround is very timely as the strongest season for this division, the Holiday season, is right in front of us.
PFSW generates about $450M/year in revenues and its market cap is only $46M!.
Fair value has been estimated to be $6 based on comparables is PFSW can return to consistent profitability.
PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.
I fully agree with this Yahoo poster babouk, thanks for bringing us the text. He summarizes everything that we've been writing about PFSW and adds some new information about EBITDA and what to expect when the company reports 2nd quarter earnings.
The S&P 500 fell 3% yesterday. PFSW rose about 3%. I think it will make a bullish breakout of the $1.08 level when the good news hits the wire.
I'll continue holding PFSW for the long term.
RECENT 3STOCKSONFIRE VIDEO ANALYSIS ON PFSW:
http://www.stocksonvideo.com/forum/index.php?topic=79.0&ref=video
* pfsw.pdf
I don't have a good explanation to why PFSW fell 5.8% in Friday's session. I don't have a bad explanation either.
I'll just hold and wait for tomorrow's news.
Hang in there David - I believe your strategies are sound and will payoff in the long-run, your record is pretty good. I'm still around and just upped for another year.
Here's some news on PFSW...
DigitalPost Interactive Partners With eCOST.com in Strategic Marketing Alliance
eCOST.com Customers to Enjoy Advanced Web 2.0 Features of TheFamilyPost.com
IRVINE, CA, Aug 13, 2007 (MARKET WIRE via COMTEX) -- DigitalPost Interactive (DGLPdigitalpostinteractive inc com
DGLP ) ( www.dglp.com), a provider of user-friendly Web platforms for digital media sharing and social networking, announced today that it has entered into a marketing partnership with eCOST.com, a leading multi-category online retailer, to offer a trial of its flagship service www.TheFamilyPost.com as an added value to eCOST.com customers.
TheFamilyPost.com is an innovative Web 2.0 platform that enables even the most novice Internet users to create their own, visually stunning websites that combine rich multimedia with social networking functionality. Upon placing their orders, each eCOST.com customer will be presented with a trial version of their own, customizable family website through TheFamilyPost.com. Once their sites are created, those clients will be able to upgrade to a subscription at any time to store additional multimedia, and to take advantage of the premium version's advanced functionality, including chat rooms, message boards, and unlimited photos and videos.
"This is a great opportunity for eCOST.com customers to enhance their digital Internet experience," said Michael Sawtell, CEO, DigitalPost Interactive. "We're pleased that eCOST.com is offering our websites to its established online customer base, and are confident they will recognize and appreciate the added value this partnership provides."
"By providing our customers with this unique free website offer, we continue to expand the value of shopping at eCOST.com," said Gary Guy, President of eCOST.com.
PFSweb Reports Positive Net Income and $3.4M in Adjusted EBITDA; eCOST.com Performance Continues To Improve
Last Update: 8:01 AM ET Aug 14, 2007
PLANO, Texas, Aug 14, 2007 (BUSINESS WIRE) -- PFSweb, Inc. , a global provider of business process outsourcing ("BPO") solutions for both online and traditional commerce, today announced its financial results for the second quarter and six months ended June 30, 2007.
Summary of consolidated results for the second quarter ended June 30, 2007:
-- Total reported revenue was $108.4 million, compared to $109.3 million for the second quarter of 2006;
-- eCOST.com revenue was $27.1 million, compared to $21.6
million in the first quarter of 2007 and $28.8 million for
the same period in 2006;
-- Adjusted EBITDA (as defined) was $3.4 million versus $3,000 for the same period last year;
-- Net income was $154,000, or $0.00 per basic and diluted share, compared to a net loss of $3.2 million, or $0.07 per basic and diluted share, for the second quarter of 2006;
-- Merchandise sales (as defined) totaled approximately $649 million for the second quarter of 2007 versus $662 million for the same period last year;
-- Total cash, cash equivalents and restricted cash equaled $16.9 million as of June 30, 2007.
Summary of consolidated results for the six months ended June 30, 2007:
-- Total reported revenue was $212.8 million, compared to $220.0 million for the six months ended June 30, 2006;
-- Adjusted EBITDA (as defined) was $4.1 million versus $1.6 million for the same period last year;
-- Net loss was $2.2 million, or $0.05 per basic and diluted share, compared to a net loss of $4.8 million, or $0.12 per basic and diluted share, for the six months ended June 30, 2006;
-- Merchandise sales (as defined) totaled nearly $1.3 billion versus $1.2 billion for the same period last year.
Please note that the prior year's six months consolidated results only include the financial results for eCOST.com from the date the merger closed on February 1, 2006 through June 30, 2006.
Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "We are pleased to report our first quarter of profitability on a consolidated basis since the merger of eCOST.com was completed approximately 18 months ago. Furthermore, Adjusted EBITDA grew from just $3,000 in the second quarter of 2006 to $3.4M in 2007. We believe this quarter was another solid step in the execution of our strategic plan to drive growth and improve financial performance by leveraging our world class technology and operational infrastructure across multiple channels. We have a good outlook for each of our businesses and I believe our overall financial health is rock solid. We believe we remain on track to meet our goal of consolidated annual revenue of $420 to $435 million and Adjusted EBITDA of $8 to $10 million in 2007."
Summary of results by business:
Service Fee Business:
For the second quarter of 2007, Service Fee revenue increased 9% to $17.6 million, compared with $16.2 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $1.9 million for the second quarter of 2007, compared to $2.0 million for the same period last year.
For the six months ended June 30, 2007, Service Fee revenue increased 8% to $34.6 million, from $32.1 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.2 million for the six months ended June 30, 2007, compared to $3.3 million for the same period last year. The drop in Adjusted EBITDA is primarily attributable to a decrease in project work in 2007, lower gross profit margins on certain new client implementation activity, as well as increased SG&A costs primarily related to additional facility and personnel related expenses.
Mike Willoughby, President of PFSweb's services divisions commented, "We are pleased with the revenue growth experienced from the new contracts signed in the fourth quarter of 2006 and first quarter of 2007. This is the first quarter that all of these contracts, including Lego and Riverbed, have been fully implemented. Gross margins for the business remain within our targeted range of 25-30%. Next week we are hosting a ribbon cutting ceremony with the executive team of Lego at our Memphis distribution facility to formally launch the new initiative. Looking ahead, we are excited by the potential for new contracts as our new business pipeline has strengthened to approximately $38.5 million, compared to $25 million at the end of the first quarter."
Supplies Distributors Business:
For the second quarter of 2007, Supplies Distributors revenue was $57.6 million, compared to $60.9 million for the same period last year. Adjusted EBITDA was $2.1 million for the second quarter of 2007, compared to $1.6 million for the same period last year.
For the six months ended June 30, 2007, Supplies Distributors revenue was $116.4 million, compared to $129.3 million for the same period last year. Adjusted EBITDA was $3.4 million for the six months ended June 30, 2007, a slight increase compared to $3.3 million for the same period last year.
Mr. Willoughby continued, "During the second quarter, results for the Supplies Distributors business were within our expectations, and margins improved to 8%, slightly above their normal range due to the impact of certain incremental inventory cost reductions. However, revenue for the six month period declined due to reduced vendor promotional activity, the impact of foreign currency fluctuations and lower unit volumes in the first quarter of 2007."
eCOST.com Business:
For the second quarter of 2007, eCOST.com revenue was $27.1 million, compared to $21.6 million in the first quarter of 2007 and $28.8 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the quarter was a loss of $0.6 million, compared to an Adjusted EBITDA loss of $0.9 million for the first quarter of 2007 and a loss of $3.6 million for the same period last year.
For the six months ended June 30, 2007, eCOST.com revenues were $48.7 million, compared to $50.6 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the six months ended June 30, 2007 was a loss of $1.5 million, compared to a loss of $4.9 million for the same period last year. Please note, the prior year period results for eCOST.com reflect only five months of activity from the date of acquisition of February 1, 2006 through June 30, 2006.
Mr. Layton continued, "The eCOST.com business continues to show substantial improvements. Revenue for eCOST.com has increased sequentially in each of the last three quarters. Also, gross profit margins have improved strongly year-over-year, while costs have trended down. This has led to a sharp reduction in eCOST.com's losses versus the second quarter of 2006."
"During the quarter, eCOST.com went live with several new enhancements that we believe will help drive overall growth and improved margins. These incremental enhancements include: the launch of a new home and outdoor products category, improved product detail pages and multiple images of products, addition of a related accessories tab to the product detail page, a new shopping cart 'jump page' that also offers related products and other features, and improved "hot product" presentation in each of our major product categories. With these and many other improvements underway, we believe we are well-positioned for continued growth and are excited by the momentum we are seeing in the eCOST.com business." Mr. Layton concluded.
Significant operating events for second quarter of 2007:
-- The Service Fee business successfully implemented a customized order management and logistics solution for LEGO Brand Retail
-- The Service Fee business successfully implemented a customized international logistics and product configuration solution for Riverbed Technology
-- Opening of a new Customer Care facility in Manila, Philippines to house customer service operations and additional support functions for eCOST.com
-- Addition of new home and outdoor products and expansion of eCOST.com's proprietary Bargain Countdown(TM)
-- Enhanced real time product listing capabilities on eCOST.com through a partnership with Etilize
-- eCOST.com added 3 new Virtual Warehouses in the second quarter of 2007, bringing the total number of Virtual Warehouses to 12. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales.
Financial Guidance for Fiscal Year 2007
PFSweb continues to target total consolidated revenues, excluding pass-through revenues, of approximately $420 million to $435 million and consolidated Adjusted EBITDA of $8 - $10 million for 2007. Capital expenditures for 2007 are estimated to be approximately $3 - $5 million, excluding costs related to the implementation of new business contracts for the Service Fee Business. Achieving these targets will depend upon, among other things, achieving and maintaining the currently expected significant improvement in operations from eCOST.com and continued strong performance from our Service Fee and Supplies Distributors businesses on a year-over-year basis.
Conference Call Information
Management will host a conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on August 14, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 823-7459 and enter the pin number (9081135) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through September 14, 2007 at (877) 519-4471, pin number (9081135). The replay also will be available at the company's web site for a limited time.
Non-GAAP Financial Measures
This news release contains the non-GAAP measures Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.
EBITDA represents earnings (or losses) before interest, taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, merger integration related expenses and a loss on a sales transaction to a former eCOST.com customer. EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA and Adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital spending, stock-based compensation, merger related expenses and certain other expenses, which items may vary from different companies for reasons unrelated to overall operating performance.
Merchandise Sales
Merchandise sales represent the estimated value of all fulfillment activity that flows through PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount of such sales on its financial statements, excluding service fee revenues that PFSweb might recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating metric to allow investors to gain a more thorough understanding of its business and business volume, in addition to GAAP net revenue.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfilment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, FLAVIA(R) Beverage Systems, Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon, Onkyo, Seiko and Toshiba primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc., visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.
A profit, for the first time since eCost.com acquisition. Profits came much earlier than I expected. Awesome results in my opinion, let's see the market response.
I'll keep holding PFSW for the long term.
I've just listened to the PFSW conference call, here are some highlights:
- 2007 full year guidance remains at $427.5 M in revenue and $9 M EBITDA. Questioned by an analyst on to why they don't raise guidance, management replied:
«2007 is the first year we've provided annual guidance in five or six years so we're being conservative, focusing on over performing not over promising.»
- Lego and Riverbed contributed to this quarter;
- The company has a new client which is a major brick and mortar US retailer, but it won't reveal the name until its website is launched, which will happen in Q3;
- The value of the new business pipeline is now estimated at $38 M versus $25 M in Q1 2007. PFSW's market cap is $47 M;
- ecost.com now has 110,000 products for sale, with 12 virtual warehousing agreements. The company expects to add more virtual warehouses, because it improves gross margin;
- ecost.com has 1.7 million costumers on the list and had 231,600 active costumers in Q2;
- The average order value at ecost.com was $422, compared to $340 in Q2 2006;
- Costumer acquisition costs for ecost.com was $9.76 versus $13.97 in Q2 2006;
- Cash in the balance sheet currently is $16.9 M. The company confirmed all its banking relationships and credit facilities and sees no impact from the current "credit crunch" in the credit markets;
- Break even point for ecost.com is something like $29 M - $30 M in revenue. Q2 2007 revenue was $27.1 M, growing from $21.5 M in Q1;
- The 4th quarter will be the strongest of the year due to seasonal factors. We've been through a seasonally weak period.
Overall I'm very pleased with the quarterly results and the outlook for the future, as management puts it, profitability isn't the end of the road, but the start. Management is looking for margin expansion and EPS growth in the future.
I'll continue holding PFSW for the long term.
PFSW is doing a tremendous turnaround in its business and the stock barely moves. I attribute that to the general market bearishness, because in normal trading conditions PFSW would just explode to the upside.
I'll patiently wait for the stock price to reflect the improving and surprisingly strong fundamentals.
So cool, PFSW filed an 8-K form with the conference call transcript:
Conference Call Transcript (http://www.sec.gov/Archives/edgar/data/1095315/000095013407018389/d49224e8vk.htm)
Maybe this will help putting some sense in investors heads and the stock makes a bullish breakout of the $1.08 resistance level.
PFSW has awesome fundamentals (after a remarkable turnaround), yet the stock barely moves. Probably buddjas1 is right and investors will wait for further confirmation of the fundamental improvement. And then they'll drive the stock up 5 fold in less than a year ... this often happens with micro-caps.
I'll patiently keep holding PFSW.
looks like its perfect time to buy, fast stochastics is close to over sold and RSI 2 is oversold.
Quote from: pinoleropuro on August 20, 2007, 11:27:17 PM
looks like its perfect time to buy, fast stochastics is close to over sold and RSI 2 is oversold.
I agree pinoleropuro, even though I don't have much faith in those technical indicators.
Also on the technical side, the stock touched my short term ascending trendline for the 5th time.
PFSW's conference call was the most detailed I've ever heard. Management disclosed everything about its business, all the metrics they use ... (if you have time check the conference call transcript on my previous updates).
The CEO and CFO specifically said they wanted to be conservative and over deliver, not over promise. Hence they didn't raise full year EBITDA guidance, despite the 2nd quarter being much stronger than even they expected. But I believe I'm assured the future for PFSW will be bright and the company will easily beat its own guidance.
The stock is valued at a ridiculously low 1/10 of annual revenues. I'll keep holding PFSW for the long term.
A few words from the conference call:
«We see these results as a testimony to the execution and the focus that we've maintained since the merger was completed almost 18 months ago. And it's consistent with our vision and strategy that we communicated when we consummated the merger. Most important, we believe that returning the company to profitability after completing the integration and transition of the merger is a starting point, not an end point, in our evolution as a public company. Everyone in our organization is energized by our recent accomplishments, but the overall excitement here and at eCOST is clearly about the future and there's good reason for that.
The eCOST business continues to show a substantial improvement trend. Revenue for eCOST increased sequentially in each of the last 3 quarters and clearly this is a business that you would see the fourth quarter as its seasonal peak. Gross profit margins have also improved, costs have trended down versus the prior year and just the overall energy and morale of the business is really solid at this point. All of these things together has led to a sharp reduction in eCOST losses versus the second quarter of 2006 and we're trending to see continued improvements in that area.
Our Services division also showed continued revenue growth. We are encouraged by the recent improvements in our sales lead pipeline, which are relatively significant, and Mike will give you some highlights on that in a minute. We had really strong proposal activity for new business in this last quarter.»
Things can only get better at PFSW. I'll keep holding.
Let's talk about PFSW's pipeline:
«Our prospective new business pipeline is currently valued at approximately $38 million based on client projected volumes. Compared to a pipeline value of about $25 million we reported in our first quarter Conference Call. So a significant improvement in the value of our pipeline quarter-over-quarter.»
This is very significant for a $48 M market cap company, don't you think? If the new business pipeline is internally valued at $38 M, if the valuation is correct, the rest of the business is being valued by the market at $10 M, which is ridiculously low.
We had a $1.04 close yesterday. We'll we see a bullish breakout above $1.08 over the next couple of months? You bet.
Broke the resistance at 1.08, looks like buyers stepped in and are taking it up...A close above 1.13 would be really nice...and a good PR would be excellent timing.
Kent
nice break out :)
All started in the last 30 minutes or so, lots of buying right then, either a single individual or maybe an institution started buying. Very nice Marubozu! >:D
Finally, the World is starting to make sense again, as a return to sanity made investors push PFSW up and breakout above the key $1.08 short term resistance level. The fundamental turnaround was published in big letters more than a month ago, but it took this length of time for the price to respond accordingly. Talk about inefficiency. That's actually a good thing, because without inefficiencies it would be much harder or even impossible to beat the general market.
I'll sleep better tonight. See you tomorrow.
Nice pattern forming here (rounding bottom)... It could be double from the current level. ;D
fyi:
PFSW: MDB Capital Keeps @ Buy; Ups Tgt to $3.5 vs $2.25; Analyst Notes
Friday , August 17, 2007 11:37ET
Issuer: PFSweb Incorporated (NasdaqSC: PFSW)
Analyst Firm: MDB Capital Group LLC
Ratings Action: REITERATION
Current Rating: Buy
Target Price Action: INCREASE
Target Price: $3.50 (+55.56% from $2.25)
Analyst Comments: With the ongoing revenue improvement at eCost.com and the solid pipeline of new services business, PFSWeb is on track to enjoy an extended period of solid revenue growth and significant bottom line earnings expansion. PFSWeb reported very positive results for the 2nd quarter of 2007, with a 9.8% sequential jump in revenues to $108.4 million.
&
PFSW: Jumps +7.55%; Vol +65%; Last 90 Min of Trading
Thursday , August 23, 2007 16:21ET
During the last 90 minutes of today's session, shares of PFSweb Incorporated (NasdaqSC: PFSW) demonstrated a strong UPWARD close relative to its 13:30 ET statistics. "Strong Closers" are determined by proprietary Knobias calculations performed during the last segment of each trading day.
sym: PFSW @13:30 ET @CLOSE % CHANGE
---------- ----------- ----------- ------------
PRICE $1.06 $1.14 +7.55%
VOLUME 207,500 342,800 +65.20%
#TRADES 130 239 +83.85%
DAY-HI $1.07 $1.14 LATE-HI
DAY-LO $1.03 $1.03 N/A
It could be a good chance for those who didn't buy the stock to get it from $1.05 to $1.08 ...
This will be next week ... target will be $1.80 to $1.90 this is almost 90% ;D
David What do you think about ETLT ?? I bought it at $0.62 this one will double for sure ..
What about the fundementals are they still good ?
Quote from: Garoh on August 24, 2007, 07:58:33 AM
It could be a good chance for those who didn't buy the stock to get it from $1.05 to $1.08 ...
This will be next week ... target will be $1.80 to $1.90 this is almost 90% ;D
David What do you think about ETLT ?? I bought it at $0.62 this one will double for sure ..
What about the fundementals are they still good ?
Absolutely, even better than I initially thought. I'm going to have a cup of coffee now and then will write a brief updated analysis for the Video Portfolio holdings in the proper place before I enter the vacations period.
Just a quick chart update for PFSW:
Very interesting chart... the recent breakout generated a nice price advance, pushing finally PFSW out of that extensive trading range. Given the amplitude of the trading range in question, I would point a technical target for this breakout @ $1.34, but off course this is just a technical projection. The first resistance is located @ $1.23 followed by January's high of $1.44, the support level is now the old resistance @ $1.08.
I must say I really like this kind of chart ;)
Portfolio Instructions:
Hold PFSW
Best regards,
Up 10% today, nice volume since the last 3 days, lovin it!!! ;D
Today's candle is shaping up to become a 3rd white soldier. If that's the case, the stock may gap up tomorrow and then sell off the top. I am going to put a trailing stop of 5% tomorrow around the open to capture the gain.
I've been up these peaks so many times now that feel it's better to collect a good profit, especially after an explosive run, and then re-enter on a dip with the same number of shares.
Just need to catch it at the dip. ;)
This is not the right place for me to ask this question, but it would be faster to get an answer. I forgot the website of Video Portfolio, any help please?
Thanks a lot.
http://www.stocksonvideo.com/
Chart Update:
An awesome session for PFSW ;)
This breakout has brought attentions (and money) into this stock, volume is getting higher everyday, and so the momentum. PFSW is already above the $1.23 resistance (now a support), its near the $1.44 relative high and closed 1 tick above the projection of the broken trading range.
Berloga may be right about the «three white soldiers» candlestick pattern, but so far the stock had closed the last 2 session below the intraday highs, and that makes more difficult to perform a gap up, and makes the move a bit more sustainable in technical terms.
Despite the short term expected volatility, and according to David’s fundamental model, this is still one of the most attractive stocks held in our Portfolio, even after this huge short term move.
Portfolio Instructions:
Hold PFSW
Regards,
Chart update:
PFSW had no chance to continue its rally with such pessimism in the general market. Even so, it manage to perform an inside candle, closing above the nearest support.
Portfolio Instructions:
Hold PFSW
Regards,
Quote from: Ramsburg on August 29, 2007, 01:09:00 AM
Chart update:
PFSW had no chance to continue its rally with such pessimism in the general market. Even so, it manage to perform an inside candle, closing above the nearest support.
Portfolio Instructions:
Hold PFSW
Regards,
Wasnt a great candle but it probably does allow for the continuation of the rally compared to if it would have gapped up and made a dark cloud cover, etc.
Quote from: tokyopua on August 29, 2007, 08:45:02 AM
Wasnt a great candle but it probably does allow for the continuation of the rally compared to if it would have gapped up and made a dark cloud cover, etc.
I agree tokyopua, this kind of moves always need to consolidate ;)
Chart update:A nice candle for PFSW with the $1.23 support working so far. The stock is now consolidating these level before attempting to run into new relative highs.
Portfolio Instructions:Hold PFSW
Regards,
Chart update:
PFSW is on fire, still inside the consolidation range, but showing a lot of determination to break into new relative highs...
The stock reacted two times at 1.37 so this is now the short term resistance (followed by 1.44), for downside I'm still considering the 1.23 region as the first support. Momentum may have a bigger boost if the stock manage to breakouts 1.37 today, as a quick consolidation area like this is usually a sign of speed.
Taking in consideration David's fundamental approach for this stock (the second with best appreciation potential), anything it's possible and it would be a great present for him to get back from vacations and watch PFSW above $1.44 (the last relative high) ;)
Portfolio Instructions:
Hold PFSW
Regards,
PFSW is now above the last relative high ;)
PFSW is now above the last relative high ($1.44), and even with the recent gains and according to our Fundamental Model, its one of the positions inside our Main Portfolio with bigger potential ;)
Quote from: Garoh on August 24, 2007, 07:58:33 AM
It could be a good chance for those who didn't buy the stock to get it from $1.05 to $1.08 ...
This will be next week ... target will be $1.80 to $1.90 this is almost 90% ;D
David What do you think about ETLT ?? I bought it at $0.62 this one will double for sure ..
What about the fundementals are they still good ?
This is my target from $1.80 to $1.90 :)
Quote from: Ramsburg on August 31, 2007, 08:38:02 AM
David's fundamental approach for this stock (the second with best appreciation potential), anything it's possible and it would be a great present for him to get back from vacations and watch PFSW above $1.44 (the last relative high) ;)
Cheers to David, this was a great pick and just took some time to develop. Hope he is somewhere recharging those amazing stock picking brain cells and totally relaxing and enjoying his time with his family!
One one hand I feel PFSW has a lot more gas to go and hit $2 target sometime in the near future. On the other hand, I feel paranoid again about losing the gain. I know David is bave and does not use stops anymore, but I just feel it could be a good idea to protect some of the gains somehow. All I can think of is to introduce trailing stops after a 2-4 day runs up.
Today is the 3rd day up and if the stock gaps on Tuesday, it may once again sell off for a pick up at lower support levels. Anybody has any better ideas/thoughts?
Thanks.
If you listen to Cramer,he says absolutely sell some on the way up. Don't be a hog. What ever makes you comfortable.
QuoteCheers to David, this was a great pick and just took some time to develop. Hope he is somewhere recharging those amazing stock picking brain cells and totally relaxing and enjoying his time with his family!
Thanks Tokyo, I still need to learn a lot about stock picking. Yep, in fact, the past week was probably one of the best in my life, I almost had forgotten how good it feels to take a break from work.
PFSW is now up 45% from my buying price, without any additional news, and berloga is nervous about the possibility of losing the profit back to the market. soxguy says Cramer advises to sell some on the way up, which for me is like not saying anything at all, or not knowing what he's doing. Selling the winners is probably a good explanation why Cramer's Portfolio at thestreet.com has underperformed the S&P 500 since inception.
There's a lot of literature about this issue, I guess the best two being Reminiscences of a Stock Operator (Jesse Livermore experience) and One Up on Wall Street (by Peter Lynch).
My own experience (which is quite small in comparison) tells me most of the times it is better to take the profit. However, to achieve a superior performance, it is better to keep the winner. Did you get this?
In the majority of the times one will probably lose his profit back to the market. But the minority that keeps rising will rise so much that will more than compensate the majority of stocks that fall back down.
The conclusion is: keeping the winners, letting the profits run, is the proper attitude.
As for taking the profit for buying back on a dip ... let's just say that causes a lot of anxiety and less profits over the long run. It also makes a man think about things he shouldn't think, like short term technical indicators and stuff like that, which simply don't work.
Just my view here.
Fundamentally PFSW is now a $67.5 M market cap company with projected 2007 revenues of $427.5 M, so the price to sales ratio is one of the lowest in the market, at just 0.156. This happens because the net profit margin is very slim, even though it improved over the past quarter.
eCost.com revenues grew 20% sequentially, in a seasonally weak period.
Say PFSW's revenue will grow 20% in 2008, to $513 M and the company achieves my long term estimate of a 3% net profit margin. That would mean 2008 net income of $15.4 M. Now apply the Business Services industry (http://finance.yahoo.com/q/co?s=pfsw) average valuation of 25.35 times earnings and get to a $390 M market cap in 2008, that is, about $8.38 per share.
The upside potential is this huge, the downside ... well, the stock may come back down to around $1.
I'll keep holding PFSW for the long term.
Welcome back from what appears as a short vacation, David! I spent 3 days in Montreal and wish I had more time at hand. European vacations sound oh so sweet. The one you took is more of a US-type. I hope you had a good time to relax.
As for the PFSW, I agree it has a big up-potential and little to the downside, so I would like to hold it. $1.44 should serve as a good support for building a basis here. I just think that 45% is too much to let slip all together, although this should not happen to PFSW based on its fundamental value that we know.
Let's see if we win or get jilted again. ;)
QuoteWelcome back from what appears as a short vacation, David! I spent 3 days in Montreal and wish I had more time at hand. European vacations sound oh so sweet. The one you took is more of a US-type. I hope you had a good time to relax.
Yep, great time, thanks berloga :)
QuoteAs for the PFSW, I agree it has a big up-potential and little to the downside, so I would like to hold it. $1.44 should serve as a good support for building a basis here. I just think that 45% is too much to let slip all together, although this should not happen to PFSW based on its fundamental value that we know.
Let's see if we win or get jilted again. ;)
Yes, let's see what happens. We're at $1.53 now, so 53% profit so far.
You know, if one always gets nervous when with a 50% plus profit (thinking - "I should just bank it"), he should also consider that this way he will never have a 5 or 10 bagger (500% or 1000% profit). Never.
According to Peter Lynch, having a 10 bagger once in a while is what makes the difference between the average investor and the star investor. If you believe him and want to be a star, you need to believe that at least one or two of your stocks may very well be a 10 bagger, and be patient and hold on to it throughout all short term swings.
PFSW has a lot of potential, because it is a turnaround (but still young) story and it was trading at 1/10 of its annual sales. They just need a 3% net profit margin (which is still slim) to put the stock above $6, as we've seen, so ... let's hope our profits grow.
I'll keep holding PFSW.
And the damn pullback came ::)
Was it predictable? Well, in a way, yes, no stock goes up in a straight line. But, when would it happen and at what exact price and at what price will it stop and reverse ... well, that's impossible to predict over the long term, as the chart gives too many false signals and fundamental analysis isn't exact and can't predict short term movements.
So I ignore short term fluctuations. I believe I'll have a better long term performance by ignoring them than by trying to catch the short term swings.
I'll keep holding PFSW for the long term.
It's a big gain or nothing in PFSW, at least for me, off course everybody can play the stock as he or she wishes.
We've had a 50% Fibonacci retracement, which is perfectly normal (although unpredictable to when and at what price it will happen). I trust the fundamental turnaround and undervaluation of PFSW and I'll keep holding the stock for the long term.
I'm glad I wasn't around to see the weak hands selling PFSW at $1.20, what a shame selling this rock solid fundamental story:
«We believe this quarter was another solid step in the execution of our strategic plan to drive growth and improve financial performance by leveraging our world class technology and operational infrastructure across multiple channels. We have a good outlook for each of our businesses and I believe our overall financial health is rock solid.»
The best is clearly yet to come, because PFSW was priced for bankruptcy, not for strong growth and a "rock solid" financial condition. To be priced accordingly to fundamentals, at least $3 should be achieved immediately. $6 over the long term if everything plays out as expected.
I'll keep holding PFSW.
Hi David,
I noticed that PFSW in the past never passed the 0.30 in price/sales ratio.
Why do you think that in the near-medium term PFSW should go much higher than current levels?
Cheers
Quote from: terainvestment on September 12, 2007, 06:00:38 AM
Hi David,
I noticed that PFSW in the past never passed the 0.30 in price/sales ratio.
Why do you think that in the near-medium term PFSW should go much higher than current levels?
Cheers
That's a very good question terainvestment, thanks :)
You see, like any other company in the world, what PFSW wants is profits, not just growing sales. Unfortunately, in 9 years of financial history, PFSW never posted meaningful profits (it lost money in 7 years and made just $0.02 per share in 1999 and $0.01 per share in 2003).
This is why it always had a very low price to sales ratio, because the company couldn't turn a very high sales level into profits.
However, this is changing now, and the company posted the first profitable quarter going back six quarters in 2Q 2007. More importantly, there are clues this is just the start of strong profitability, just read the 2nd quarter conference call transcript here:
CONFENRENCE CALL TRANSCRIPT (http://www.sec.gov/Archives/edgar/data/1095315/000095013407018389/d49224exv99w1.htm)
So, the explanation to why I expect PFSW to trade at a higher than 0.3 sales multiple in the future is because I see the company turning profitable.
I'll keep holding PFSW for the long term.
Screening in the web I found this about the stock... sorry if I am out-of-date
PLANO, Texas--(BUSINESS WIRE)--Sept. 4, 2007--PFSweb, Inc. (NASDAQ: PFSW), a
global provider of business process outsourcing ("BPO") solutions for both
online and traditional commerce, today announced it has been named as one of
the "100 Great Supply Chain Partners" by Global Logistics and Supply Chain
Strategies (GL&SCS) magazine.
The GL&SCS 100 Great Supply Chain Partners program recognizes vendors and
service providers whose technology, logistics, transportation, or consulting
solutions have made a significant impact on a client's efficiency, customer
service, and overall supply chain performance.
"We are honored to be recognized as one of the 100 Great Supply Chain Partners
in the world," said Mike Willoughby, President of PFSweb's Services divisions.
"Currently, we operate two million square feet of global fulfillment and
logistics capacity supporting more than 40 clients. Our robust fulfillment and
logistics infrastructure and supporting supply chain technology combined with
our long-term experience as a leading BPO service provider provide a solid
foundation for continued growth in the future. We sincerely appreciate this
recognition from GL&SCS and we believe it further validates our position of
leadership in the growing global BPO space."
The GL&SCS "100 Great Supply Chain Partners" program is the result of a
six-month poll in which logistics and supply chain professionals are asked to
nominate technology suppliers who have significantly impacted their business.
The nominations are based on value and cost savings, reliability, performance,
knowledge base, and service and support. In 2007, more than 1,800 nominations
from small and large companies covering scores of different industries on five
continents were received. Over 350 vendors of every conceivable type of supply
chain activity were nominated -- from very specialized technologies, to global
third-party logistics providers to highly specialized transportation services.
The 100 companies that received the most qualified nominations were selected to
this year's list.
Additional information on Global Logistics & Supply Chain Strategies' list of
the Top 100 Great Supply Chain Partners is available at www.glscs.com.
QuoteScreening in the web I found this about the stock... sorry if I am out-of-date
Hi Rmagos, how are you? :)
That press release was out on the September 4th, but thanks for putting it here, I see I missed it on my daily updates.
There isn't much new to say about PFSW, as there weren't any news out.
As I read parts of the conference call transcript, I see a press release coming out soon, related to this:
«In last quarter's Conference Call I noted that we signed a letter of intent with a new client that is a major US retailer. And I'm pleased to announce as we anticipated that we've signed the contract and statement of work to provide product fulfillment and customer care services for this company's new online store initiative. However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season. This latest addition to our growing portfolio of premiere direct to consumer clients helps confirm the validity of our goal to strengthen our presence in this online retail space.»
I expect PFSW to remain and grow its profitability from now on and to achieve a net profit margin of 3% over the long term. This company has 1,200 employees and everything to be a $300 M or more market cap company. Currently it is just a $59 M market cap.
I'll keep holding PFSW for the long term.
The following are significant changes from a profit perspective:
- «Net income was $154,000, or $0.00 per basic and diluted share, compared to a net loss of $3.2 million, or $0.07 per basic and diluted share, for the second quarter of 2006;»
- «Furthermore, Adjusted EBITDA grew from just $3,000 in the second quarter of 2006 to $3.4M in 2007.»
As for the future, management says ...
- «We have a good outlook for each of our businesses and I believe our overall financial health is rock solid. We believe we remain on track to meet our goal of consolidated annual revenue of $420 to $435 million and Adjusted EBITDA of $8 to $10 million in 2007."»
And, when asked about why not raise guidance, the CEO replied:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=40376;image)
I think PFSW corrected with the general market but it is now ready to push higher again, moving towards $2 a share. The fundamental information we already have is enough to justify such a move, in my view.
I'll keep holding PFSW for the long term.
I'll patiently keep waiting for the following prediction to turn into reality:
QuoteI think PFSW corrected with the general market but it is now ready to push higher again, moving towards $2 a share. The fundamental information we already have is enough to justify such a move, in my view.
Hold PFSW.
I believe the CEO when he says: "We prefer to under promise and over deliver" because he said the eCost division would have $26 M revenue in the 2nd quarter and the actual number was $27.1 M.
After a natural correction I believe PFSW will move to new highs shortly.
I guess PFSW went down yesterday because Circuit City (down 18%), which is also an electronics products retailer, posted weaker than expected results. SYX also went down a bit because of this.
In my view these sellers don't have any merit, because PFSW is just a $60 M market cap company, much more dependent on its own intrinsic fundamental trends, which are positive.
I'll keep holding PFSW for the long term.
nice chart action for the weekend ;D
it sure was nice action in deed ;D
Hi David
I see the earnings release is coming out Nov 14 and I was wondering if (considering good news and sell on the news) I should wait to buy after the news?
Are there two other favorites you would suggest buying at this point?
Thanks and Best
GMan
Quote from: la-onda on September 21, 2007, 11:18:11 PM
nice chart action for the weekend ;D
Yep, it will show up on everybody's technical filters, and when they read the turnaround story behind PFSW ... I believe they'll rush to buy.
QuoteHi David
I see the earnings release is coming out Nov 14 and I was wondering if (considering good news and sell on the news) I should wait to buy after the news?
Hi guitarman :)
As I wrote previously on this thread, just the existing fundamental information should be enough to drive PFSW to around $2, not counting on future expectations. From today until November 14 is a long time, you may end up buying the "sell the news" at $1.80, down from $2 ;D
QuoteAre there two other favorites you would suggest buying at this point?
No, not at this time, I feel I like all stocks in the Main in the same manner. You pick two or three from those 11 stocks, good luck :)
Without any news out PFSW showed we've had a correction, but the trend is up, according to the fundamental change. I especially enjoyed the rise in volume. It looks clear now that PFSW will challenge the recent highs around $1.6.
I'll continue holding PFSW for the long term.
PFSW opened with a gap up so it came down to close the gap. Over-excited morning buyers almost always get disappointed later in the day.
Anyway, the gap was closed, the uptrend should resume now.
Fundamentally everything stands the same, I believe PFSW should be trading at $2 just considering the existing financial information.
I bought some PFSW yesterday, I'm ready for the run up! ;D
I picked up a bit more at $1.25 last week. At a minimum I'm looking for a retest of recent highs.
Bound to hear something soon...
From David....
As I read parts of the conference call transcript, I see a press release coming out soon, related to this:
«In last quarter's Conference Call I noted that we signed a letter of intent with a new client that is a major US retailer. And I'm pleased to announce as we anticipated that we've signed the contract and statement of work to provide product fulfillment and customer care services for this company's new online store initiative. However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season. This latest addition to our growing portfolio of premiere direct to consumer clients helps confirm the validity of our goal to strengthen our presence in this online retail space.»
Kent
it sure would be nice I have been waiting on something to wake up my portfolio for a while.
8)
Got in during the gap!
Looked like the thing to do and I'm already up.
Thanks David
Good Luck All
Gman
I thought you guys were holding PFSW since around $1 like I am, but $1.2 - $1.4 seems fine too.
That news from the retailer should be coming out any day now, but it isn't all that relevant in terms of the long term fundamentals. It should only be nice because it could bring some more publicity to PFSW's turnaround story.
Here are some more words from the latest conference call:
«Before we go for questions I just want to reiterate something I said in the opening remarks. The improvements that we've made in the eCOST business and the overall strength of our Services business enabled us to achieve profitability in the second quarter but the real excitement in the story lies in the momentum we're seeing in our business and the positive opportunities available to operate these businesses in a way that will extract the most value for our shareholders. When we conceived the merger, we understood that our know how and world-class infrastructure would give us the best chance of resurrecting the eCOST brand and business. While that transformation is still a work in progress, the momentum is building and we're now in our third straight quarter of sequential revenue growth and operational improvements at eCOST.
As we continue to breathe new ideas and opportunity into eCOST we see greater opportunities for our vision for growth and profitability to be realized at all levels well above where we are today and we believe that will translate into stronger returns for our shareholders many of which have supported us through a difficult transition.»
I'll keep holding PFSW for the long term.
I am holding my first buys at less than $1. I had some $ get freed up and I have been using them to add to my positions in PFSW, SWIR, NVTL, IMMR, CIMT, GIGM, and GSB. Excluding PFSW at $1.25, all of the others were picked up during the bad market dip around 8/16. I have alot of confidence in these picks, my two top favorites are PFSW and IMMR. The more I read about IMMR, the more I see this as truly revolutionary technology. Great picks David !!!
Great decision to buy on 8/16, JKN! Applaud.
Thanks...I felt that the market fundamentals had not changed drastically, nothing fundamentally had changed with any of the picks, and that those fundamentals are well insulated from the liquidity crisis, other than market sentiment. The trader in me still wants to be stock-hopping but until I build enough capital to play fast and loose, I won't do it. I also think trading can be highly profitable in the right market with hot sectors, but for me, today, this ain't it.
Thanks Again..applause to David. I'm overdue on that anyway.
Quote from: JKN on September 26, 2007, 11:41:54 AM
Thanks...I felt that the market fundamentals had not changed drastically, nothing fundamentally had changed with any of the picks, and that those fundamentals are well insulated from the liquidity crisis, other than market sentiment. The trader in me still wants to be stock-hopping but until I build enough capital to play fast and loose, I won't do it. I also think trading can be highly profitable in the right market with hot sectors, but for me, today, this ain't it.
Thanks Again..applause to David. I'm overdue on that anyway.
Thanks for sharing your thoughts on trading JKN :)
I guess the more capital you'll have, the less you'll want to play it fast.
I've been studying some more about PFSW. It seems gross margin will always be in the 10% range, at least that what management says and what competitors have. So what the company needs is cost control to put some more of that gross profit into the bottom line.
In this respect Q2 2007 was a great quarter, because gross profit increased from $11 M to $13 M, and SG&A costs went down from $12 M to $10 M (this compared with Q2 2006). Hence the $3.4 M adjusted EBITDA.
PFSW's fundamental trends are positive and the improvement seems to be just beginning, I'll continue holding PFSW.
PFSW had its lowest volume in almost two months yesterday. I guess the stock will need some more positive news releases to move towards $2. I'm very confident that the next few quarters earnings releases will be very positive, as the latest quarter was just the beginning of PFSW's fundamental turnaround to profitability. I'll hold PFSW for the long term.
PFSW seems to be growing as a company, look at them looking to hire more and more people here: jobs at PFSWeb (http://www.careerbuilder.com/Jobs/Company/C241H6VMT6BFVF6M3Y/Pfsweb-Jobs/?cbsid=5ca4272e3550453b800b5eea431bfd1d-244539996-RC-4&&cbRecursionCnt=1)
In my valuation model I'm looking for just 10% revenue CAGR, but, if we consider e-cost.com revenues grew 25% in Q2 2007 from Q1 2007, my estimate can be well below where reality is going to be.
But it is perhaps somewhat of a long shot to expect a 3% net profit margin, PFSW is really a very low margin business. Still, 3% seems so low. We'll see what the next few quarters bring (I'm specially enthusiastic about the 4th quarter, because that's seasonally the strongest), I'll continue holding PFSW for the long term.
Nothing new today for PFSW, I'll keep holding the stock for the long term.
INTERNET STOCKS ARE GOING CRAZY AND PFSW HAS NOT BEEN DISCOVERED YET......Unlike other internet stocks, PFSW is profitable.
3-MONTH TARGET: $3+
With over $400 million in sales and a Price/Sales ratio of 0.1, PFSW is super undervalued under $2.
Consider the following:
1) Its internet retailer subsidiary eCost has turned profitable last quarter just in time for the hottest season for internet retailing....the September - January time frame.
2) HUGE DISCOUNT TO SECTOR: Trades at a HUGE discount to other Internet stocks. PFSW has a Price/Sales ratio of 0.14 compared to an Industry average of 1.76.
3) VALUATION: If PFSW ACHIEVES "TYPICAL" VALUATION OF 12 X EBITDA IT WILL BE A $4 STOCK. PFSW earned $3 MM EBITDA last quarter and has guided for $8M to $10M EBITDA for the year.
4) ECOST BENEFITING FROM BOOMING ONLINE SALES: ONLINE SALES ARE FORECAST TO GROW over 50% THIS HOLIDAY SEASON.
5) PFSW TURNED PROFITABLE LAST QUARTER. Primarily because substantial revenue growth by its eCost division and improved general fundamentals.
6) PFSW's bottom line results will show SUBSTANTIAL improvement going forward- PFSW cost base will be SUBSTANTIALLY lower going forward as it has slashed overhead and completed the integration of its ECOST aquisition.
7) Insiders have purchased Over 200,000 shares recently.
PFSW has now turned the corner to sustained profitability and exponential growth by leveraging the power of the Internet. Internet stocks that have achieved sustained positive cash flow and earnings have been the hottest sector recently....take a look at BIDU, AMZN, etc
He's back !!!
PS. PFSW thread already exists, please post there, just ask SE Travis...I'm sure he'll let you know in due time.
Also, you're late to the party...we all got in around a buck. Enjoy the ride...
Who is he? Where is the existing thread?
There is a little box near the top, right of the page. This is the "SEARCH" box. Just type PFSW in the search box and hit 'enter' or click the "search" tab to the right of the box....and viola!
Technology is amazing.
Happy trading.
Jody
Quote from: JKN on October 02, 2007, 12:21:37 PM
He's back !!!
PS. PFSW thread already exists, please post there, just ask SE Travis...I'm sure he'll let you know in due time.
Also, you're late to the party...we all got in around a buck. Enjoy the ride...
Quote from: 422fwhp on October 02, 2007, 01:15:11 PM
There is a little box near the top, right of the page. This is the "SEARCH" box. Just type PFSW in the search box and hit 'enter' or click the "search" tab to the right of the box....and viola!
Technology is amazing.
Happy trading.
Jody
Simply amazing how this post by "oscar2519" and the creation of a new thread on this pick resembles the work of "alexxxtreme" one member that just got banned from this site.
oscar2519, Heads up... Use the search to find a thread before creating new ones.
Also in the Title of the thread "do not use all those capital letters" ! This is a famous and notorious way that the bimbos post on the Yahoo Boards. When one uses all CAPS, it is as though he or she is trying to speak to loud to pump a stock.
By the way I do suspect that you are "alexxxtreme" and also "longbeacher"!!
You are under my surveillance...There is not one thing that goes on here at 3SOF that I do not know about. This is the Greatest Stock site on the WWW...I do intend to keep it just that way.
3 Stocks On Fire has my total Loyalty...This is my home...Do not mess with my house!
This thread you created PFSW when one already existed will be merged with the up and running thread on this stock pick.
By the way guys....JKN....422fwhp...You have got a big applaud from me for your post here.
Thanks, Through your actions, it shows who the true loyal members to 3SOF are !!
What a remarkable 16% shot to the upside from PFSW. Nothing to be surprised, given the fundamental turnaround within the company. It seems pretty obvious to me that the stock should trade north of $2, just considering the current fundamental information, and not the future possibilities.
I'll keep holding PFSW for the long term.
PFSW actually closed positive on the day, after that low volume dip ... no news out.
I'll keep holding PFSW for the long term.
PFSW down 3.9% on less that 100,000 shares traded. No big deal. I would like it if the stock were able to sustain $1.44 as support, before a new bullish leg to new highs above $1.6. But there won't be any problem if this technical scenario doesn't play out, because the chart doesn't know much about the future.
I'll keep holding PFSW for the long term.
I have a concern on PFSW. Its competitor IM, although profitable, only has a price sale ratio of 0.11. I think PFSW is in a very low margin business, thus even if it becomes profitable, its price sale ratio may still be very low.
Quote from: hyhl on October 06, 2007, 11:31:31 AM
I have a concern on PFSW. Its competitor IM, although profitable, only has a price sale ratio of 0.11. I think PFSW is in a very low margin business, thus even if it becomes profitable, its price sale ratio may still be very low.
Thanks for your message hyhl, I share your concern.
But, if we make some more comparisons with IM, we see it is a $3.43 B market cap company, while PFSW is just $65 M, that is, IM is 53 times larger than PFSW. In terms of the number of employees of the two companies, IM has 13,700 and PFSW has 1,200. Using this metric IM is 11.4 times larger.
What I mean is, even if PFSW never achieves a 3% net profit margin as I have in my valuation model, it can still be a much larger than $65 M company, because revenue can grow a lot more than the 10% I have in the model (ecost.com revenues grew 25% in just one quarter).
Either way, I see PFSW's future value being a lot more than what it is today and I'll keep holding the stock for the long term, despite the short term weakness in the share price.
The chart below could be seen as possibly forming a double top, but ... a couple of days of positive market action can change everything. The chart is always changing, you can't trust it for your investment decisions, or else your hands will always be weak and you'll be doomed to be a short term trader. A short term trader doesn't have a high quality of life and even worse (only if you love money more than everything, which isn't my case), he usually loses money over the long run.
We don't have any news out from PFSW for more than a month now ... I'm confident the 3rd quarter, but even more so the 4th quarter earnings release, will bring good news. I wonder about management's guidance for 2008 ...
I'll keep holding PFSW for the long term.
PFSW is still sea sawing on low volume. I expect the next relevant fundamental information, namely the 3rd quarter results, to be the catalyst to move PFSW beyond the $1.59 high. I'll continue holding PFSW.
We're still trading sideways, between $1.20 and $1.60 or so. Because I expect PFSW to move towards $6 plus over the long term I don't care about the short term volatility. I'm not going to sell if the stock hits $2, and I'm not going to sell if it goes back down to, say, $0.80. I don't care about the stock, just the business fundamentals. If they improve, the stock will undoubtedly rise. And this is the only way to make money consistently and over a 20 or 30 years period in the stock market.
Anyway, I believe people selling yesterday are selling near the lows, they don't know what they're doing.
We got a press release today, but nothing very relevant:
• Microlife Chooses PFSweb to Support E-Commerce Partnership with the Blood Pressure Association in the UK (http://biz.yahoo.com/bw/071011/20071011005289.html?.v=1)
Business Wire (Thu 8:00am)
The website looks cool, the pedometer is an interesting product.
I'll continue holding PFSW for the long term.
From alexa.com, I can not see any improvement of ecost. I do doubt if the 3rd quarter earning will be good.
Quote from: hyhl on October 12, 2007, 11:36:24 PM
From alexa.com, I can not see any improvement of ecost. I do doubt if the 3rd quarter earning will be good.
I own an online business and I can tell you that Alexa is not always well correlated with actual traffic levels. Its just a rough estimate, not an exact science. Further, turnover improvements can be achieved in many ways for the same level of traffic, even assuming that it has stayed the same. Quality of traffic, layout changes in their site, pricing changes, etc. are all other very important factors that we cannot judge merely from looking at Alexa traffic ranks.
Quote from: hyhl on October 12, 2007, 11:36:24 PM
From alexa.com, I can not see any improvement of ecost. I do doubt if the 3rd quarter earning will be good.
Quote from: tokyopua on October 13, 2007, 03:09:25 AM
Quote from: hyhl on October 12, 2007, 11:36:24 PM
From alexa.com, I can not see any improvement of ecost. I do doubt if the 3rd quarter earning will be good.
I own an online business and I can tell you that Alexa is not always well correlated with actual traffic levels. Its just a rough estimate, not an exact science. Further, turnover improvements can be achieved in many ways for the same level of traffic, even assuming that it has stayed the same. Quality of traffic, layout changes in their site, pricing changes, etc. are all other very important factors that we cannot judge merely from looking at Alexa traffic ranks.
I agree with Tokyopua, and PFSW's management already said it is looking for less, but better costumers, to increase its profit margins:
«While our new customer count is down, the result is our losses are down. Our financial performance is improving as well because we're a lot more focused on being certain that we attract customers who will repeat buy and that we pay to acquire these customers in a manner that's profitable. So our focus is on producing an appropriate financial model out of the acquisition activity, not just driving top line growth. With this better information, we believe we're much better armed. Our marketing team's making great strides in driving site traffic and new customers in a manner that as I said makes long-term financial sense for us.
In the second quarter, eCOST had approximately 1.7 million total customers on the list. That compares to about a 1.6 million in the prior period a year ago. Active customers for the quarter ended June 30 were 231,600. That compared to 351,200 for the same period last year. However, that speaks to my point of more focused acquisition activity. New customers for the second quarter of 2007 totaled 25,400. That's versus 70,600 a year ago. But again, focus on the acquisition cost and the like value of the customers that we're acquiring. We believe we're being much smarter with that than we had been in the past.
For the 3 months ended June 30th, eCOST reported a total of 64,100 shipped. Our average order value was $422. That compares to 89,900 orders shipped in the second quarter of '06 and an average order value of $340. So as you can see the average order size is growing as we focus on different product sets and the deals that we're talking about going forward.
Ad expenses for the second quarter were $303,900. That compares to $986,300 for the second quarter of 2006, a pretty dramatic change, and as I mentioned a lot on the life value customer. The cost to acquire a new customer for the second quarter of 2007 was $9.76. That compared to $13.97 in the same period last year.»
As you can see, eCost's strategy is to have less but better costumers, to increase profit margins. The strategy seems to be working.
This way traffic measures to www.ecost.com are almost meaningless for the company's success.
Every online electronics retailer is moving higher lately, it is MALL, it is SYX and PFSW is just consolidating the 50% plus move it had. I believe the stock will make a bullish breakout of $1.59 over the medium term and I'll continue holding PFSW.
"because revenue can grow a lot more than the 10% I have in the model" Vs
"eCost's strategy is to have less but better costumers, to increase profit margins."
So which will be increased? Revenue? profit margin? Both or neither?
no offense. Just want to elicit more discussion.
___________________________________________________________________________
But, if we make some more comparisons with IM, we see it is a $3.43 B market cap company, while PFSW is just $65 M, that is, IM is 53 times larger than PFSW. In terms of the number of employees of the two companies, IM has 13,700 and PFSW has 1,200. Using this metric IM is 11.4 times larger.
What I mean is, even if PFSW never achieves a 3% net profit margin as I have in my valuation model, it can still be a much larger than $65 M company, because revenue can grow a lot more than the 10% I have in the model (ecost.com revenues grew 25% in just one quarter).
As you can see, eCost's strategy is to have less but better costumers, to increase profit margins. The strategy seems to be working.
Thanks!
Quote from: tokyopua on October 13, 2007, 03:09:25 AM
Quote from: hyhl on October 12, 2007, 11:36:24 PM
From alexa.com, I can not see any improvement of ecost. I do doubt if the 3rd quarter earning will be good.
I own an online business and I can tell you that Alexa is not always well correlated with actual traffic levels. Its just a rough estimate, not an exact science. Further, turnover improvements can be achieved in many ways for the same level of traffic, even assuming that it has stayed the same. Quality of traffic, layout changes in their site, pricing changes, etc. are all other very important factors that we cannot judge merely from looking at Alexa traffic ranks.
QuoteSo which will be increased? Revenue? profit margin? Both or neither?
no offense. Just want to elicit more discussion.
Yeah, sure, thanks for expressing your doubts :)
I think both will increase, revenue and profit margin. That was what happened in Q2 2007 when compared to Q1 2007, with revenue rising 3.82% (about 15% annualized) and gross margin increased to 10.96% from 9.56%. Net profit margin increased to a positive 0.14% from -2.26%.
This is meaningful improvement on a sequential basis. With the strongest part of the year coming up, in terms of seasonality, I don't see why this trend shouldn't continue.
My investment is based on the thesis that Q2 2007 marked the beginning of a fundamental turnaround for PFSW as a whole. The market, after some time, agreed with this view. Now we'll see if the turnaround gets momentum or else it stalls. I'll take appropriate action as I see the numbers coming in, but for now I'm a believer that higher revenues and higher profits are coming for PFSW and hence a higher share price.
I'll keep on holding PFSW for the long term.
(keep them coming hyhl, thanks ;))
Thank you, David!
I think the 3rd quarter results may not be good. But we should focus on the guidance of the 4th quarter.
So there won't be any preliminary results released for the 3rd quarter?
Our July activity was solid again on the eCOST side. So at this point, I think we've got you know, a reason to believe that we've got a solid base underneath this and we should continue to accelerate from there. I would expect that you know, in the third quarter, the summer's a little bit softer so I don't know that I'm going to sit here and say we're going to do 35 million in the third quarter. I don't think I'd expect that activity. I am optimistic about where we're at with the fourth quarter.
Is microlife "a major US retailer" ? I have never heard of it.
___________________________________________________________________________
In last quarter's Conference Call I noted that we signed a letter of intent with a new client that is a major US retailer. And I'm pleased to announce as we anticipated that we've signed the contract and statement of work to provide product fulfillment and customer care services for this company's new online store initiative. However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season.
QuoteThank you, David!
I think the 3rd quarter results may not be good. But we should focus on the guidance of the 4th quarter.
Yes, if the 3rd quarter is better than the 2nd, as I think it will be, that's going to be good enough, if the 4th quarter guidance is positive, which there are no doubts it will be, due to seasonal factors.
QuoteIs microlife "a major US retailer" ? I have never heard of it.
Me either. I wonder if Microlife is "the major US retailer" they referred to at the conference call, good point hyhl.
Once in my investment career I made the mistake of thinking:
«I like this company on a long term basis, but I know the next quarter will be weak due to seasonal and other factors, so I'll wait to buy on that weak quarter news, hopefully at a lower price».
The end result of this thinking was that I lost a 100% advance. The stock was MCZ.
So I'll never again look at just the next quarter, I'll consider only the long term trend in fundamentals.
I'll continue holding PFSW for the long term.
New out, this is actually exactly the kind of thing I was talking about earlier in this thread that can help them make more $ off of the same amount of traffic.
------------------------
http://biz.yahoo.com/bw/071017/20071017005387.html?.v=1
------------------------
eCOST.com Launches Enhanced Catalogue Search Capability
Wednesday October 17, 8:00 am ET
Powerful search merchandising tool to improve site search navigation for peak holiday shopping season
EL SEGUNDO, Calif.--(BUSINESS WIRE)--eCOST.com, a wholly owned subsidiary of PFSweb, Inc. (Nasdaq: PFSW - News), and a leading multi-category online discount retailer of brand-name technology and consumer electronics, today announced the launch of a new catalogue search platform powered by Visual Sciences, Inc. (Nasdaq: VSCN - News), a leading provider of real-time analytics applications, that optimizes return customers' shopping experiences. The catalogue search platform provides a powerful search merchandising tool for eCOST.com customers in preparation of the holiday shopping season.
ADVERTISEMENT
By leveraging Visual Sciences' site search solution, eCOST.com will have the ability to both help navigate return customers through the site and optimize the search function of eCOST's entire product catalogue, based on the individual preferences of shoppers. The Visual Sciences' site search solution fully enhances each customer's product search by aligning the presentation of products and content based on search term(s) used, displaying results based on the type of search performed, and providing shoppers with personalized alerts for new merchandise and deals available on the eCOST.com website.
Gary Guy, President of eCOST.com, stated, "The launch of our new catalogue search platform is just one more step in making our site more user friendly. We believe this site enhancement will drive sales growth and improve visitor to order conversion ratios as well as customer retention. This advanced search capability is increasingly necessary as we continue to expand the number of products available on eCOST.com, currently exceeding 100,000 SKUs."
"Over the past year, we have implemented major advancements to the eCOST.com website through our strategic agreements with Visual Sciences and Etilize."
About Visual Sciences
Founded in 1996, Visual Sciences, Inc. (formerly known as WebSideStory, Inc.) (NASDAQ: VSCN - News) is a leading provider of real-time analytics applications. The company's analytics applications, based on its patent pending on-demand service and software platform, enable fast and detailed analytics on large volumes of streaming and stored data. More than 1,590 enterprises worldwide rely on the answers delivered by these applications to provide them with actionable intelligence to optimize their business operations. The company provides real-time analytics applications for web sites, contact centers, retail points-of-sale, messaging systems and the intelligence community. In addition, the company's line of analytics-driven offerings leverages its analytics technology to automatically optimize Web sites and related marketing applications. Visual Sciences flexible technology platform, Visual Sciences Technology Platform 5(TM), allows the company to rapidly introduce tailored solutions to meet its clients' needs. Visual Sciences is headquartered in San Diego, Calif., and has East Coast offices in Herndon, Virginia and a European headquarters in Amsterdam, The Netherlands. For more information, contact Visual Sciences. Voice: 858.546.0040. Fax: 858.546.0480. Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121. Web site: www.visualsciences.com. Visual Sciences is a registered trademark of Visual Sciences, Inc.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (NASDAQ: PFSW - News), visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.
The matters discussed herein include forward-looking information under the Private Securities Litigation Reform Act of 1995 which is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter ended June 30, 2007 identify certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual and Quarterly Reports and the Risk Factors described therein. These Risk Factors include the risk of contract terminations. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.
Contact:
PFSweb, Inc.
Laura Osborne, 972-881-2900 x3574
Corporate Communications Manager
[email protected]or
Investors:
KCSA Worldwide
Todd Fromer, 212-896-1215
[email protected]or
Garth Russell, 212-896-1250
[email protected]
The stock was MCZ.
;D What do you think of MCZ now? I think it still has good chance to go beyond $2 by early next year.
Me either. I wonder if Microlife is "the major US retailer" they referred to at the conference call, good point hyhl.
I think there should be a real "major US retailer" news coming soon. Microlife can not be viewed as a US company. Not a retailer at all! So the site is still not ready for the holiday season?
until their site goes live in other words towards the end of this quarter just in time for the 2007 holiday seasonQuote from: David Randolph on October 17, 2007, 07:48:37 AM
QuoteThank you, David!
I think the 3rd quarter results may not be good. But we should focus on the guidance of the 4th quarter.
Yes, if the 3rd quarter is better than the 2nd, as I think it will be, that's going to be good enough, if the 4th quarter guidance is positive, which there are no doubts it will be, due to seasonal factors.
QuoteIs microlife "a major US retailer" ? I have never heard of it.
Me either. I wonder if Microlife is "the major US retailer" they referred to at the conference call, good point hyhl.
Once in my investment career I made the mistake of thinking:
«I like this company on a long term basis, but I know the next quarter will be weak due to seasonal and other factors, so I'll wait to buy on that weak quarter news, hopefully at a lower price».
The end result of this thinking was that I lost a 100% advance. The stock was MCZ.
So I'll never again look at just the next quarter, I'll consider only the long term trend in fundamentals.
I'll continue holding PFSW for the long term.
Quote;D What do you think of MCZ now? I think it still has good chance to go beyond $2 by early next year.
Hi hyhl, I recently wrote an analysis for MCZ with my current thoughts, please check it out ...
MCZ analysis (http://www.3stocksonfire.org/trading/index.php?topic=10288.msg105305#msg105305)
... and then tell me what's going to take it to $2. Thank you :)
QuoteSo the site is still not ready for the holiday season?
I guess that's it, we'll probably know just at the next conference call.
We've had this press release yesterday, which Tokyopua posted:
• eCOST.com Launches Enhanced Catalogue Search Capability (http://biz.yahoo.com/bw/071017/20071017005387.html?.v=1)
Business Wire (Wed 8:00am)
It looks like they're working well, and investing, so they're confident about eCost's (http://www.ecost.com/) outlook. I wonder if they won't change the website's design, I really dislike it, what are those blank spaces in the homepage? Is it just me or the homepage design is ugly?
Anyway, it isn't just design that makes a great business and eCost's sales have been rising meaningfully.
Someone sold a few shares right at the close and that took the stock down from $1.37 to $1.32, closing down 2.2% on the day. It wouldn't surprise me to see it go back up to $1.37 today, also with low volume. It seems like the stock is waiting for the 50 days SMA before rising, which currently stands at $1.27.
I'll keep holding PFSW for the long term.
2) Revenue CAGR
Since revenue in the fiscal 1st quarter of 2007 fell 19.6% from the year ago levels, I think revenues will be about 15 - 20% lower three years from now than what they were in fiscal 2007. This means fiscal 2010 revenue of about $85 M and 0.95 as revenue CAGR in the valuation model.
Since Real World Golf is released in the 1st quarter of 2006, the revenue in that quarter becomes much larger than other 1st quarters. I do not think it is legitimate to predict revenue drop in the following years based on the revenue "drop" in the 1st quarter of 2007.
I think the most important thing for a penny stock like MCZ is whether it has some nice story. In response to the recent console transition (Wii, PS3, XBOX360), the game industry has experienced significant growth this year. Thus I do not think MCZ's revenue will go down in the 3rd and 4th quarters. In addition, after the new CFO started his position, MCZ eliminated less profitable product, and added higher margin products. Just like PFSW, MCZ will have a positive earning in the 3rd quarter, accompanied by a rosy guidance for the 4th quarter. Such an earning news plus the news on the general game market are enough to push MCZ to $2 around the end of this year.
You may check the chart on GME and NTDOY. The market favors large caps in the 3rd quarter. Now it is small cap's turn to shoot up.
I am not sure MCZ's long term trend. Long term wise, PFSW is a much better company.
Quote from: David Randolph on October 18, 2007, 06:46:49 AM
Quote;D What do you think of MCZ now? I think it still has good chance to go beyond $2 by early next year.
Hi hyhl, I recently wrote an analysis for MCZ with my current thoughts, please check it out ...
MCZ analysis (http://www.3stocksonfire.org/trading/index.php?topic=10288.msg105305#msg105305)
... and then tell me what's going to take it to $2. Thank you :)
QuoteSo the site is still not ready for the holiday season?
I guess that's it, we'll probably know just at the next conference call.
We've had this press release yesterday, which Tokyopua posted:
• eCOST.com Launches Enhanced Catalogue Search Capability (http://biz.yahoo.com/bw/071017/20071017005387.html?.v=1)
Business Wire (Wed 8:00am)
It looks like they're working well, and investing, so they're confident about eCost's (http://www.ecost.com/) outlook. I wonder if they won't change the website's design, I really dislike it, what are those blank spaces in the homepage? Is it just me or the homepage design is ugly?
Anyway, it isn't just design that makes a great business and eCost's sales have been rising meaningfully.
Someone sold a few shares right at the close and that took the stock down from $1.37 to $1.32, closing down 2.2% on the day. It wouldn't surprise me to see it go back up to $1.37 today, also with low volume. It seems like the stock is waiting for the 50 days SMA before rising, which currently stands at $1.27.
I'll keep holding PFSW for the long term.
I bought PFSW at $1.32 yesterday. I will add more if it gets under $1.3. This one is a 3-bagger for those patient investors. Who would have thought that BIDU would go from $80 to almost $400?? Timing is the key for those who maximize returns......buy at the very low and sell near the highs
Thanks for your views on MCZ hyhl :)
There weren't any news out for PFSW, just the fact that the stock closed 3.8% higher than the price someone dumped shares on Wednesday just before the close.
I'll continue holding PFSW for the long term.
PFSW's revenue in 2001 was $28 M and in 2006 it was $423 M. This means 72% revenue CAGR, which is very impressive growth, much higher than the 10% I have in my valuation model (http://www.3stocksonfire.org/fundamental.model.php?ticker=PFSW&portfolio=main).
With 1,200 employees and continuing to grow its head count, PFSW doesn't look like a $63 M business. I believe the stock will rise over the long term, reflecting the true value of the company and I'll keep holding it.
PFSW reacted well after touching the 50 days SMA support. As I was looking at www.ecost.com I thought those prices were really attractive and thought I could buy a new computer there ... but unfortunately:
«At this time, eCOST.com does not accept orders shipping to addresses outside of the U.S. and Canada. We define it as an international order when the order is to ship to an address outside the 50 United States of America or Canada. We do accept international credit cards for shipments within the 50 United States of America.»
With the Euro currency so strong things in USD are really cheap. However, things are getting more expensive here at home, since my income comes in USD and they're worth less and less. But it doesn't bother me at all, as I have other sources of income.
Going back to PFSW ... nothing new, I'll continue holding the stock for the long term.
I do like the way PFSW behaves during the market downturn, like today and last Friday.
However, I become more and more worried about the alleged "major US retailer".
Not sure what is going on. October is almost over. The site still has not gone alive!!
Just in time for the holiday season? I guess they will actually miss it.
I do not think they deliberately wait until the ER to accounce the news. It is not a secret to keep. Once the site is ready, the customers should know ASAP. Otherwise who is going to make the purchase??
David, could you please explain why you think both the revenue and profit in the 3rd quarter will increase? Only based on ecost? In the past year, the 3rd quarter is usually the weakest quarter.
However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season.
QuoteI do like the way PFSW behaves during the market downturn, like today and last Friday.
Yes, but volume is low and two days are meaningless in the bigger scheme of things.
QuoteHowever, I become more and more worried about the alleged "major US retailer".
Not sure what is going on. October is almost over. The site still has not gone alive!!
Just in time for the holiday season? I guess they will actually miss it.
I do not think they deliberately wait until the ER to accounce the news. It is not a secret to keep. Once the site is ready, the customers should know ASAP. Otherwise who is going to make the purchase??
It's not a big deal. Probably it doesn't represent more than 3% of the total revenue of a single quarter. Perhaps they mentioned it at the conference call just because they wanted to show they work with some larger companies. Anyway, I don't think there's a single "major US retailer" without an internet presence these days.
QuoteDavid, could you please explain why you think both the revenue and profit in the 3rd quarter will increase? Only based on ecost? In the past year, the 3rd quarter is usually the weakest quarter.
I'm not sure if revenue and profit will increase in Q3, what I see is a positive trend in revenues and profits. A positive trend doesn't imply there will be growth every quarter, in a linear way. Rarely there's linearity in company's fundamental trends.
But I believe they will raise 2007 guidance, or at least confirm that they're very optimistic about the 4th quarter and 2008.
QuoteHowever we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season.
Listen, I'm going to write Investor Relations asking if Microlife is the "major US retailer" or what's going on there. They're usually quick to answer and then I'll let you know.
I'll keep holding PFSW for the long term.
:D I agree with you on this. I am not sure what they are trying to claim.
Anyway, I don't think there's a single "major US retailer" without an internet presence these days.
I check the price of the electronic products in ecost, few of them are cheaper than Amazon. Plus Amazon has free shipping. Why should we buy from ecost then?
Quote from: hyhl on October 27, 2007, 03:03:41 PM
I check the price of the electronic products in ecost, few of them are cheaper than Amazon. Plus Amazon has free shipping. Why should we buy from ecost then?
Thanks for this question hyhl :)
I think only the people who bought $27 M of products from www.ecost.com in the 2nd quarter (compared with $21.6 M in Q1) could answer it.
Also, don't forget PFSW is a $63 M market cap company, compared with AMZN which is a $37 B company. So, PFSW doesn't have to be better than AMZN to rise (if it became better it would rise more than 500 fold), it just needs to keep improving its own revenues and profits.
I'll continue holding PFSW for the long term.
Please see below for the email response from Tom Madden,
Microlife is not the new retailer client we referred to in our prior disclosures. As always, in announcing any new client relationship, PFSweb is subject to the client's approval for when, and if, any press release can be made.
Thanks for your investment in PFSweb.
Tom Madden
PFSweb CFO
Quote from: hyhl on October 29, 2007, 11:57:43 PM
Please see below for the email response from Tom Madden,
Microlife is not the new retailer client we referred to in our prior disclosures. As always, in announcing any new client relationship, PFSweb is subject to the client's approval for when, and if, any press release can be made.
Thanks for your investment in PFSweb.
Tom Madden
PFSweb CFO
Thanks for the valuable information hyhl, it's good to know Microlife isn't the "major US retailer" and that good news is still to be released.
Other than this information there weren't any developments for PFSW yesterday, as the stock continues to trade along its 50 days SMA (red line in the chart below). I'll keep holding PFSW for the long term.
PFSW's 3rd quarter earnings will be out on November 13th:
• PFSweb to Report 2007 Third Quarter Results on November 13th (http://biz.yahoo.com/bw/071030/20071030005437.html?.v=1)
Business Wire (Tue, Oct 30)
I enjoy their very informative conference calls ... and like GIGM does, they usually file an SEC form with the conference call transcript.
Perhaps they'll now be in a position to raise full year guidance.
I'll keep holding PFSW for the long term.
PFSW fell 9.4% yesterday without any valid reason in my opinion. The way I see it, PFSW, selling more than $100 M a quarter, will only need to earn $2 M in one quarter to be a $4 stock. And I think this will happen, not in Q3 2007, but probably in Q3 2008.
So I'll keep holding PFSW for the long term, while I ignore short term fluctuations.
PFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.
The question now is: Is PFSW on track to profit $2 M a quarter and become a $200 M market cap company ($3.44 a share)?
I believe that if one reads the 2nd quarter conference call transcript (http://www.sec.gov/Archives/edgar/data/1095315/000095013407011848/d46869exv99w1.htm) the answer is yes!
I'll keep holding PFSW for the long term.
I have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?
Quote from: David Randolph on November 05, 2007, 07:24:45 AM
PFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.
The question now is: Is PFSW on track to profit $2 M a quarter and become a $200 M market cap company ($3.44 a share)?
I believe that if one reads the 2nd quarter conference call transcript (http://www.sec.gov/Archives/edgar/data/1095315/000095013407011848/d46869exv99w1.htm) the answer is yes!
I'll keep holding PFSW for the long term.
QuoteI have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?
Four main reasons:
1 - The 2nd quarter already showed a remarkable improvement, there's real revenue and net income growth, not just talk;
2 - PFSW's Q2 CC transcript is probably the most detailed I've ever seen, they gave us several objective metrics to measure the business's financial trends;
3 - If management wanted to artificially pump the stock price they would have raised full year revenue and EBITDA guidance, but instead they just said, in the CC and not in the press release, that they want to over deliver instead of over promising;
4 - There weren't any insider sales.
We'll see if Q3 shows some more improvement, I believe so.
I'll keep holding PFSW for the long term.
Thank you!
BTW, do you know why the 2nd quarter revenue of ecost has increased a lot? Any particular reasons? Is it only attributed to their hard work?
Quote from: David Randolph on November 06, 2007, 04:51:32 AM
QuoteI have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?
Four main reasons:
1 - The 2nd quarter already showed a remarkable improvement, there's real revenue and net income growth, not just talk;
2 - PFSW's Q2 CC transcript is probably the most detailed I've ever seen, they gave us several objective metrics to measure the business's financial trends;
3 - If management wanted to artificially pump the stock price they would have raised full year revenue and EBITDA guidance, but instead they just said, in the CC and not in the press release, that they want to over deliver instead of over promising;
4 - There weren't any insider sales.
We'll see if Q3 shows some more improvement, I believe so.
I'll keep holding PFSW for the long term.
QuoteThank you!
BTW, do you know why the 2nd quarter revenue of ecost has increased a lot? Any particular reasons? Is it only attributed to their hard work?
You're welcome hyhl :)
Well, it sure wasn't a seasonal effect and I don't think there was any one time item impacting www.ecost.com sales, because nothing was mentioned and eCost's business model doesn't favor that.
I guess eCost sales rising from $21.6 M to $27.1 M, from Q1 2007 to Q2 2007 was largely due to they having more products for sale and making better advertising. Management said, over the latest CC that they're not going to do $35 M in sales in Q3, but even though they didn't provide any quarterly guidance, they looked confident that sales have continued to grow in Q3, from $27.1 M to, say ... $30 M?
This would be nice, especially if they are profitable sales. What PFSW needs now is a profit margin expansion, the revenue level is already quite satisfactory.
I'll keep holding PFSW for the long term.
I picked this yesterday, besides a little late, I think it is important news for the stock...
PLANO, Texas--(BUSINESS WIRE)--October 29, 2007--PFSweb, Inc. (NASDAQ: PFSW), a
global provider of business process outsourcing ( BPO ) solutions for both
online and traditional commerce, today announced it was named to Deloitte &
Touche s Technology Fast 500 list, ranking as the 409th fastest growing
company in North America.
The Deloitte Technology Fast 500 is a ranking of the fastest growing
technology, media, telecommunications and life sciences companies in North
America based on percentage fiscal year revenue growth over five years (2002
2006). During this period, PFSweb achieved revenue growth of approximately 336
percent.
We are honored to be included in Deloitte's prestigious Technology Fast 500 as
one of the fastest growing companies in North America over the past five years.
We feel that our business process outsourcing solutions and eCOST.com
businesses are in exciting markets providing opportunities for further growth,
stated Mark Layton, Chairman and CEO of PFSweb.
More information on the Technology Fast 500 is available at
http://www.fast500.com/.
David, have you ever read the reviews of ecost on fatwallet? Most of them are really BAD. I think the company does not try hard to improve their customer service. I doubt whether this company can be a LONG term hold if this situation continues.
http://www.fatwallet.com/forums/retailerratings/displaystore.phpstart=0&storeid=180#comments
QuotePFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.
was this a prediction that it is going to fall 50% from its high? because its about 25% down from its last high.
???
Quote from: hyhl on November 08, 2007, 09:12:33 PM
David, have you ever read the reviews of ecost on fatwallet? Most of them are really BAD. I think the company does not try hard to improve their customer service. I doubt whether this company can be a LONG term hold if this situation continues.
http://www.fatwallet.com/forums/retailerratings/displaystore.phpstart=0&storeid=180#comments
PFSW's management has been on the job with eCost for just about a year, and eCost's past in terms of costumer service isn't good. I think they've been working towards improving costumer service. If everything was positive one couldn't buy the stock for $0.1 for each $1 of annual revenue.
Quote from: pinoleropuro on November 08, 2007, 11:52:23 PM
QuotePFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.
was this a prediction that it is going to fall 50% from its high? because its about 25% down from its last high.
???
Hi Pinol, I'm disappointed with PFSW's behavior yesterday. The stock fell 6.6% breaking important technical levels. I'm even more disappointed because for several times I used PFSW as an example of a stock that shouldn't be traded, but held for the long term.
Time and PFSW's stock price proved me wrong, it would have been better to take a 50% profit than watch it erode to the current 13% profit.
From a fundamental standpoint there wasn't any new information out indicating that the fundamental turnaround that I am anticipating isn't indeed happening. PFSW's competitors (considering eCost's part of the business) have been doing very well, just consider SYX yesterday. SYX reached 2.6% net profit margin in Q3 2007. I expect PFSW to reach 3% in two and a half years.
Even though PFSW's chart looks bearish, I disregard this technical information, because it can change pretty quickly and fundamental trends (more solid and long term) are positive in my view.
Next Tuesday, when PFSW reports Q3 numbers, we'll know more. I expect a continuation of the revenue growth and profitability (albeit small) evidenced in Q2 2007.
I'll keep holding PFSW for the long term.
I believe we have a nice little spike in uniques :D and its only november ;)
I read reviews for the past months at fatwallet today. Frankly I am kind of disappointed.
It is not "just" about a year. It is "already" about a year. I did not notice any improvement on customer service. Moreover, I kind of doubt their honesty according to the reviews. I feel that sometimes they are trying to CHEAT the customers. Well, I know it is normal and they will make some money in this way. But for LONG term growth, I have to think twice.
I recall that in the last CC, they claimed to find a way to attract returning customers. But I do not know how they are going to achieve that. To be honest, I won't make any purchase from ecost after reading all the reviews.
$6 may be realizable, but there is a long and bumpy way ahead.
BTW, I do not trust reviews from other websites, which are full of one-sentence reviews from anonymous identities.
Fatwallet provides more details and it is more popular.
Customer support rating: (out of 10)
ecost 1.6
bestbuy 2.4
tigerdirect 2.9
overstock 3.2
circuit city 4.2
amazon 6.9
PFSW's management has been on the job with eCost for just about a year, and eCost's past in terms of costumer service isn't good. I think they've been working towards improving costumer service. If everything was positive one couldn't buy the stock for $0.1 for each $1 of annual revenue.
Hi VisualJourney, can you explain the "spike in uniques" better? Thanks :)
hyhl, I understand and respect your bearish views on PFSW, specifically eCost. But you have to also consider the valuation of the company ... PFSW's market cap is just $56 M.
If you take the second company with the lowest average costumer rating in your list, which is Best Buy (BBY) with 2.4, it is a $18.8 B market cap company. How do you explain that with such low average costumer rating BBY is a giant in market valuation terms?
It seems to me that there's little correlation between costumer reviews and the market value of a company, even though that could be hard to imagine from a costumer standpoint.
PFSW doesn't have to be better than Amazon, TigerDirect or Best Buy ... there's a market for everybody. PFSW just needs to get better on its own, and it may very well rise five fold. I expect this to happen if one gives a couple of years time to this management.
Tomorrow after the close we'll know more about how the 3rd quarter went. I'll keep holding PFSW for the long term.
Thanks a lot! David.
Do you have an estimation of the yearly earning of PFSW? If we consider it in the business service sector, the average P/E is about 20; if we consider it in the consumer electronic retailer sector, the average P/E is about 16. When do you think PFSW will achieve a yearly earning of more than 10 cents? I think this is the minimum value to maintain the current bull trend. Two years later?? It may go to 55 cents first.
You can check the institutional holding. No big institution inside this stock. I guess at least a 5 cents quarterly earning is needed to attract big MMs. Otherwise it is only a momo play. Let me ask you this question: if the stock goes to $4 tomorrow after ER with 3 cents quarterly earning but rosy guidance, will you still keep holding it?
Anyway, I will keep holding PFSW until at least tomorrow. ;D Let's pray for a good ER.
Quote from: David Randolph on November 12, 2007, 05:49:13 AM
Hi VisualJourney, can you explain the "spike in uniques" better? Thanks :)
hyhl, I understand and respect your bearish views on PFSW, specifically eCost. But you have to also consider the valuation of the company ... PFSW's market cap is just $56 M.
If you take the second company with the lowest average costumer rating in your list, which is Best Buy (BBY) with 2.4, it is a $18.8 B market cap company. How do you explain that with such low average costumer rating BBY is a giant in market valuation terms?
It seems to me that there's little correlation between costumer reviews and the market value of a company, even though that could be hard to imagine from a costumer standpoint.
PFSW doesn't have to be better than Amazon, TigerDirect or Best Buy ... there's a market for everybody. PFSW just needs to get better on its own, and it may very well rise five fold. I expect this to happen if one gives a couple of years time to this management.
Tomorrow after the close we'll know more about how the 3rd quarter went. I'll keep holding PFSW for the long term.
QuoteThanks a lot! David.
No, thank you hyhl, you're helping me investigating more about PFSW and its investment story.
QuoteDo you have an estimation of the yearly earning of PFSW?
Yes, I expect PFSW to earn $16.89 M, or $0.35 per share, in 2010 (http://www.3stocksonfire.org/fundamental.model.php?ticker=PFSW&portfolio=main).
QuoteIf we consider it in the business service sector, the average P/E is about 20; if we consider it in the consumer electronic retailer sector, the average P/E is about 16.
You're right, when I initially bought PFSW the Business Services industry average P/E was about 27, but now it came off to about 20 (http://finance.yahoo.com/q/co?s=PFSW). I need to reflect these changes in my valuation model. I'll do that over the next update, after earnings which will be released today.
QuoteWhen do you think PFSW will achieve a yearly earning of more than 10 cents? I think this is the minimum value to maintain the current bull trend.
I believe that in 2008 PFSW will earn more than 10 cents per share. That would mean a 0.94% net profit margin which I believe is highly achievable right here in 2008.
QuoteYou can check the institutional holding. No big institution inside this stock.
Cool, it means they'll still have to buy. The company is still too small to attract institutional investors.
QuoteI guess at least a 5 cents quarterly earning is needed to attract big MMs. Otherwise it is only a momo play.
Perhaps ... "momo play" or not, if the company turns profitable it will have an earnings multiple and that's going to be its value, whoever the buyers or holders of the stock are. What I mean is, I'm not concerned about who owns the shares, but how much will they be worth in the future.
QuoteLet me ask you this question: if the stock goes to $4 tomorrow after ER with 3 cents quarterly earning but rosy guidance, will you still keep holding it?
After making my valuation model revision (slicing the earnings multiple estimate from 27 to 18) I would most likely take the profit. That would be great :)
QuoteAnyway, I will keep holding PFSW until at least tomorrow. ;D Let's pray for a good ER.
I thought you didn't own the stock. Triple applaud for your contribution to this thread hyhl.
Earnings will be out today ... I won't pray, just expecting a continuation of the positive trend started in Q2 2007.
Press Release Source: PFSweb, Inc.
PFSweb Reports Second Consecutive Quarter of Net Income and $3.2M in Adjusted EBITDA
Tuesday November 13, 4:06 pm ET
Service Fee Business Increases Revenue 18% in the Third Quarter; Announces Several New Client Agreements
eCOST.com Financial Performance Continues To Improve
PLANO, Texas--(BUSINESS WIRE)--PFSweb, Inc. (Nasdaq: PFSW - News), a global provider of business process outsourcing ("BPO") solutions for both online and traditional commerce, today announced its financial results for the third quarter and nine months ended September 30, 2007.
Summary of consolidated results for the third quarter ended September 30, 2007:
-- Total reported revenue was $112.0 million, compared to $94.3 million for the third quarter of 2006;
-- eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million for the same period last year;
-- Adjusted EBITDA (as defined) was $3.2 million versus $5,000 for the same period last year;
-- Net income was $162,000 or $0.00 per basic and diluted share, compared to a net loss of $3.3 million, or $0.07 per basic and diluted share, for the third quarter of 2006;
-- Merchandise sales (as defined) totaled approximately $751 million for the third quarter of 2007 versus approximately $720 million for the same period last year;
-- Total cash, cash equivalents and restricted cash equaled $16.8 million as of September 30, 2007.
Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "This is the second consecutive quarter of consolidated profit since completing eCOST.com's integration. In addition, Adjusted EBITDA increased to $3.2M from just $5,000 in the third quarter of 2006. These results represent steady growth in our Services Business and a more efficient, improved eCOST.com. Going into the peak holiday shopping season, which we expect will be eCOST.com's strongest quarter moving forward, we are confident in our ability to deliver another strong financial performance and currently expect to be toward the high end of our consolidated Adjusted EBITDA guidance for 2007 of $8 to $10 million."
Summary of consolidated results for the nine months ended September 30, 2007:
Total reported revenue was $324.8 million, compared to $314.3 million for the nine months ended September 30, 2006;
Adjusted EBITDA (as defined) was $7.3 million versus $1.6 million for the same period last year;
Net loss was $2.0 million, or $0.04 per basic and diluted share, compared to a net loss of $8.1 million, or $0.19 per basic and diluted share, for the nine months ended September 30, 2006;
Merchandise sales (as defined) totaled nearly $2.1 billion versus $1.9 billion for the same period last year.
Please note that the prior year's nine months consolidated results only include the financial results for eCOST.com from the date the merger closed on February 1, 2006 through September 30, 2006.
Summary of results by business:
Service Fee Business:
For the third quarter of 2007, Service Fee revenue increased 18% to $18.4 million, compared with $15.6 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.0 million for the third quarter of 2007, compared to $0.1 million for the same period last year.
For the nine months ended September 30, 2007, Service Fee revenue increased 11% to $53.0 million, from $47.7 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $4.3 million for the nine months ended September 30, 2007, compared to $3.4 million for the same period last year.
The increases in Service Fee revenue and Adjusted EBITDA are primarily attributable to activity from new clients that were added late in 2006, increased project activity in the current year and the favorable impact of exchange rates. In addition, the Service Fee revenue for the third quarter of 2007 benefited from a shift in timing of transaction volumes from a large client into this quarter as opposed to earlier in the year.
Mike Willoughby, President of PFSweb's Services Division commented, "During the quarter, the Service Fee Business excelled, generating nearly 20% revenue growth (excluding pass-through activity). We are also pleased to announce several new client agreements were signed in the recent months. We believe this new business is driven by our ability to provide clients with global scale, world-class infrastructure and custom solutions. We continue to be excited by the potential for further new contracts as our new business pipeline remains robust at approximately $40 million, which includes over $12 million in proposals added in the third quarter."
Supplies Distributors Business:
For the third quarter of 2007, Supplies Distributors revenue was $58.3 million, compared to $55.9 million for the same period last year. Adjusted EBITDA was $1.6 million for the third quarter of 2007, compared to $3.1 million for the same period last year. The decline in Adjusted EBITDA is primarily attributable to certain incremental inventory cost reductions that occurred in the 2006 period.
For the nine months ended September 30, 2007, Supplies Distributors revenue was $174.7 million, compared to $185.2 million for the same period last year. Adjusted EBITDA was $5.0 million for the nine months ended September 30, 2007, as compared to $6.4 million for the same period last year.
Mr. Willoughby continued, "During the third quarter, results for the Supplies Distributors Business were within our expectations, with revenue of $58.3 million, a 4.3% increase over prior year, and gross margin of 6.9%. Revenue for the 2007 nine month period reflects a decline year over year due to reduced vendor promotional activity, the impact of foreign currency fluctuations and lower unit volumes as compared to the prior year."
eCOST.com Business:
For the third quarter of 2007, eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million in the third quarter of 2006. Prior year revenue was negatively impacted by service and product merchandising issues incurred in conjunction with the 2006 integration activities of eCOST.com into the Company's operations. On a sequential basis, eCOST.com's quarterly revenue remained steady compared to $27.1 million in the second quarter of 2007 and improved significantly compared to $21.6 million in the first quarter of 2007. Adjusted EBITDA for eCOST.com in the quarter was a loss of $0.4 million, a significant improvement as compared to a loss of $3.2 million in the same quarter of 2006, a loss of $0.6 million in the second quarter of 2007 and a loss of $0.9 million for the first quarter of 2007.
For the nine months ended September 30, 2007, eCOST.com revenues increased nearly 13% to $75.7 million, compared to $67.2 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the nine months ended September 30, 2007 was a loss of $1.9 million, compared to a loss of $8.1 million for the same period last year. The prior year nine month period results for eCOST.com reflect only eight months of activity from the date of acquisition of February 1, 2006 through September 30, 2006.
Mr. Layton continued, "We are pleased with eCOST.com's performance now that we have improved and streamlined its operations. These advancements have led to significant improvements in gross margins and Adjusted EBITDA results for the quarter and nine-month results. Revenues for the business were up about 12.5% for the nine months ended September 30, 2007 from the prior year period and gross profit margins increased to 8.4%. The improved gross margins are due to broader product mix, improved pricing controls, freight initiatives, reduced credit card chargeback activity and an increased number of Virtual Warehouse agreements," concluded Mr. Layton.
Significant operating events for third quarter of 2007:
-- Service Fee Business added four new partners totaling $3 to $4 million in annualized service fee revenue, based on client projections once fully implemented.
-- A large specialty retailer signed a two year agreement for PFSweb to provide a seamless customer service solution in the U.S. that supports its direct to consumer business unit.
-- Microlife AG Europe and the Blood Pressure Association (BPA) in the United Kingdom signed a two-year agreement with PFSweb for website design, configuration and hosting, order fulfillment, distribution, warehousing and financial management support for their e-commerce partnership in the U.K.
-- L'Oreal, the world's largest beauty company, selected PFSweb to provide an end-to-end fulfillment and customer service solution for its Diesel brand perfume "Fuel for Life" line. PFSweb will provide a full service solution for L'Oreal's online store, www.diesel-parfums.com/factory, including web hosting support, warehousing, order processing, fulfillment & distribution, kitting and assembly, returns and multi-lingual call center support from its European facility in Liege-Belgium.
-- Proximus, the largest mobile telecommunications operator in Belgium, selected PFSweb to provide a full service solution for their on-line store, http://www.e-proximus.be/, including web design and hosting, warehousing, order processing, fulfillment & distribution, returns and multi-lingual call center support.
-- PFSweb was named to Deloitte & Touche's 'Fast 500' and 'Texas Technology Fast 50' as one of the fastest growing companies in the U.S. and Texas over the past five years
-- PFSweb named a 'Top 100 Great Supply Chain Partner' by Global Logistics and Supply Chain Strategies Magazine
-- eCOST.com launched enhanced catalogue search capability powered by Visual Sciences in time for the Holiday season.
-- eCOST.com added 2 new Virtual Warehouses in the third quarter of 2007, bringing the total number of Virtual Warehouses to 14. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales.
Financial Guidance for Fiscal Year 2007
PFSweb continues to target total consolidated revenues, excluding pass-through revenues, of approximately $420 million to $435 million and consolidated Adjusted EBITDA of $8 – $10 million for 2007. Capital expenditures for 2007 are estimated to be approximately $6 - $7 million, including amounts financed under capital leases. Achieving these targets will depend upon, among other things, achieving and maintaining the currently expected significant improvement in operations from eCOST.com and continued strong performance from our Service Fee and Supplies Distributors businesses on a year-over-year basis.
Conference Call Information
Management will host a conference call at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on November 13, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 694-4728 and enter the pin number (9363780) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through December 13, 2007 at (877) 519-4471, pin number (9363780). The replay also will be available at the company's web site for a limited time.
Non-GAAP Financial Measures
This news release contains the non-GAAP measures Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.
EBITDA represents earnings (or losses) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, merger integration related expenses and a loss on a sales transaction to a former eCOST.com customer. EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA and Adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital spending, stock-based compensation, merger related expenses and certain other expenses, which items may vary from different companies for reasons unrelated to overall operating performance.
Merchandise Sales
Merchandise sales represent the estimated value of all fulfillment activity that flows through PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount of such sales on its financial statements, excluding service fee revenues that PFSweb might recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating metric to allow investors to gain a more thorough understanding of its business and business volume, in addition to GAAP net revenue.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (NASDAQ: PFSW - News), visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.
The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2006 identifies certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual Report and the Risk Factors described therein. These factors include: our ability to retain and expand relationships with existing clients and attract and implement new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients' projections or transaction volume or product sales; our dependence upon our agreements with IBM; our dependence upon our agreements with our major clients; our client mix, their business volumes and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the e-commerce, outsourcing, government regulation both foreign and domestic and the market for our services; whether we can continue and manage growth; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer and supplier concentration of our business; the unknown effects of possible system failures and rapid changes in technology; foreign currency risks and other risks of operating in foreign countries; potential litigation; potential delisting; our dependency on key personnel; the impact of new accounting standards and changes in existing accounting rules or the interpretations of those rules; our ability to raise additional capital or obtain additional financing; our ability and the ability of our subsidiaries to borrow under current financing arrangements and maintain compliance with debt covenants; relationship with and our guarantees of certain of the liabilities and indebtedness of our subsidiaries; whether outstanding warrants issued in a prior private placement will be exercised in the future; our ability to successfully the anticipated benefits of the merger: eCOST's potential indemnification obligations to its former parent; eCOST's ability to maintain existing and build new relationships with manufacturers and vendors and the success of its advertising and marketing efforts; eCOST's ability to increase its sales revenue and sales margin and improve operating efficiencies and eCOST's ability to generate a profit and cash flows sufficient to cover the values of its intangible assets. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations (A)
(In Thousands, Except Per Share Data)
Three Months Ended
Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
REVENUES:
Product revenue, net $ 85,263 $ 72,593 $ 250,398 $ 252,447
Service fee revenue 18,398 15,553 53,006 47,681
Pass-thru revenue 8,334 6,138 21,398 14,128
Total revenues 111,995 94,284 324,802 314,256
COSTS OF REVENUES:
Cost of product revenue 78,874 66,889 231,443 235,698
Cost of service fee revenue 12,912 11,768 38,211 34,513
Cost of pass-thru revenue 8,334 6,138 21,398 14,128
Total costs of revenues 100,120 84,795 291,052 284,339
Gross profit 11,875 9,489 33,750 29,917
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 10,678 11,330 32,493 34,238
MERGER INTEGRATION EXPENSE - 486 150 1,129
AMORTIZATION OF IDENTIFIABLE INTANGIBLES 204 204 612 545
Total operating expenses 10,882 12,020 33,255 35,912
Income (loss) from operations 993 (2,531 ) 495 (5,995 )
INTEREST EXPENSE, NET 615 557 1,857 1,505
Income (loss) before income taxes 378 (3,088 ) (1,362 ) (7,500 )
INCOME TAX PROVISION 216 221 683 580
NET INCOME (LOSS) $ 162 $ (3,309 ) $ (2,045 ) $ (8,080 )
NET INCOME (LOSS) PER SHARE:
Basic $ 0.00 $ (0.07 ) $ (0.04 ) $ (0.19 )
Diluted $ 0.00 $ (0.07 ) $ (0.04 ) $ (0.19 )
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic 46,479 46,499 46,477 41,557
Diluted 47,533 46,499 46,477 41,557
EBITDA (B) $ 3,014 $ (687 ) $ 6,603 $ (562 )
Adjusted EBITDA (B) $ 3,186 $ 5 $ 7,323 $ 1,642
(A) The financial data above should be read in conjunction with the audited consolidated financial statements of PFSweb, Inc. included in its Form 10-K for the year ended December 31, 2006.
(B) A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA follows:
Three Months Ended
Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Net income (loss) $ 162 $ (3,309 ) $ (2,045 ) $ (8,080 )
Income tax expense 216 221 683 580
Interest expense 615 557 1,857 1,505
Depreciation and amortization 2,021 1,844 6,108 5,433
EBITDA $ 3,014 $ (687 ) $ 6,603 $ (562 )
Stock-based compensation 172 206 570 686
Merger integration related expenses - 486 150 1,129
Loss on sales transaction to former eCOST customer - - - 389
Adjusted EBITDA $ 3,186 $ 5 $ 7,323 $ 1,642
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
September 30, December 31,
2007 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 14,172 $ 15,066
Restricted cash 2,611 2,653
Accounts receivable, net of allowance for doubtful accounts of $1,498 and $2,352 at September 30, 2007 and December 31, 2006, respectively
48,138 49,186
Inventories, net of reserves of $2,086 and $2,987 at September 30, 2007 and December 31, 2006, respectively
44,574 47,670
Other receivables 9,517 10,774
Prepaid expenses and other current assets 3,209 3,531
Total current assets 122,221 128,880
PROPERTY AND EQUIPMENT, net 12,325 12,884
IDENTIFIABLE INTANGIBLES 6,025 6,647
GOODWILL 15,362 15,362
OTHER ASSETS 794 848
Total assets 156,727 164,621
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations $ 27,484 $ 23,802
Trade accounts payable 56,431 62,441
Accrued expenses 20,329 21,485
Total current liabilities 104,244 107,728
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion 3,194 6,076
OTHER LIABILITIES 1,659 1,977
Total liabilities 109,097 115,781
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued and outstanding
- -
Common stock, $.001 par value; 75,000,000 shares authorized; 46,563,008 and 46,553,752 shares issued at June 30, 2007 and December 31, 2006, respectively; and 46,476,708 and 46,467,452 outstanding as of June 30, 2007 and December 31, 2006, respectively
47 47
Additional paid-in capital 91,885 91,302
Accumulated deficit (46,399 ) (44,354 )
Accumulated other comprehensive income 2,182 1,930
Treasury stock at cost, 86,300 shares (85 ) (85 )
Total shareholders' equity 47,630 48,840
Total liabilities and shareholders' equity $ 156,727 $ 164,621
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Three Months Ended September 30, 2007
(In Thousands)
Supplies
PFSweb Distributors eCOST Eliminations Consolidated
REVENUES:
Product revenue, net $ - $ 58,313 $ 26,950 $ - $ 85,263
Service fee revenue 18,398 - - - 18,398
Service fee revenue - affiliate 2,001 - - (2,001 ) -
Pass-thru revenue 8,415 - - (81 ) 8,334
Total revenues 28,814 58,313 26,950 (2,082 ) 111,995
COSTS OF REVENUES:
Cost of product revenue - 54,295 24,581 (2 ) 78,874
Cost of service fee revenue 13,585 - - (673 ) 12,912
Cost of pass-thru revenue 8,415 - - (81 ) 8,334
Total costs of revenues
22,000 54,295 24,581 (756 ) 100,120
Gross profit 6,814 4,018 2,369 (1,326 ) 11,875
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
6,699 2,448 2,857 (1,326 ) 10,678
AMORTIZATION OF IDENTIFIABLE INTANGIBLES - - 204 - 204
Total operating expenses 6,699 2,448 3,061 (1,326 ) 10,882
Income (loss) from operations 115 1,570 (692 ) - 993
INTEREST EXPENSE (INCOME), NET 48 582 (15 ) - 615
Income (loss) before income taxes 67 988 (677 ) - 378
INCOME TAX PROVISION (BENEFIT) (142 ) 358 - - 216
NET INCOME (LOSS) $ 209 $ 630 $ (677 ) $ - $ 162
EBITDA $ 1,875 $ 1,576 $ (437 ) $ - $ 3,014
Adjusted EBITDA $ 2,047 $ 1,576 $ (437 ) $ - $ 3,186
A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA follows:
Net income (loss) $ 209 $ 630 $ (677 ) $ - $ 162
Income tax expense (benefit) (142 ) 358 - - 216
Interest expense (income) 48 582 (15 ) - 615
Depreciation and amortization 1,760 6 255 - 2,021
EBITDA $ 1,875 $ 1,576 $ (437 ) $ - $ 3,014
Stock-based compensation 172 - - - 172
Adjusted
EBITDA
$ 2,047 $ 1,576 $ (437 ) $ - $ 3,186
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Nine Months Ended September 30, 2007
(In Thousands)
Supplies
PFSweb Distributors eCOST Eliminations Consolidated
REVENUES:
Product revenue, net $ - $ 174,718 $ 75,680 $ - $ 250,398
Service fee revenue 53,006 - - - 53,006
Service fee revenue - affiliate 6,067 - - (6,067 ) -
Pass-thru revenue 21,656 - - (258 ) 21,398
Total revenues 80,729 174,718 75,680 (6,325 ) 324,802
COSTS OF REVENUES:
Cost of product revenue - 162,146 69,303 (6 ) 231,443
Cost of service fee revenue 40,184 - - (1,973 ) 38,211
Cost of pass-thru revenue 21,656 - - (258 ) 21,398
Total costs of revenues 61,840 162,146 69,303 (2,237 ) 291,052
Gross profit 18,889 12,572 6,377 (4,088 ) 33,750
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
20,547 7,574 8,460 (4,088 ) 32,493
MERGER INTEGRATION EXPENSE - - 150 - 150
AMORTIZATION OF IDENTIFIABLE INTANGIBLES - - 612 - 612
Total operating expenses 20,547 7,574 9,222 (4,088 ) 33,255
Income (loss) from operations (1,658 ) 4,998 (2,845 ) - 495
INTEREST EXPENSE (INCOME), NET 96 1,807 (46 ) - 1,857
Income (loss) before income taxes (1,754 ) 3,191 (2,799 ) - (1,362 )
INCOME TAX PROVISION (BENEFIT) (471 ) 1,154 - - 683
NET INCOME (LOSS) $ (1,283 ) $ 2,037 $ (2,799 ) $ - $ (2,045 )
EBITDA $ 3,684 $ 5,013 $ (2,094 ) $ - $ 6,603
Adjusted EBITDA $ 4,254 $ 5,013 $ (1,944 ) $ - $ 7,323
A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA follows:
Net income (loss) $ (1,283 ) $ 2,037 $ (2,799 ) $ - $ (2,045 )
Income tax expense (benefit) (471 ) 1,154 - - 683
Interest expense (income) 96 1,807 (46 ) - 1,857
Depreciation and amortization 5,342 15 751 - 6,108
EBITDA $ 3,684 $ 5,013 $ (2,094 ) $ - $ 6,603
Stock-based compensation 570 - - - 570
Merger integration expense - - 150 - 150
Adjusted EBITDA $ 4,254 $ 5,013 $ (1,944 ) $ - $ 7,323
PFSweb, Inc. and Subsidiaries
Unaudited Condensed Consolidating Balance Sheets
as of September 30, 2007
(In Thousands)
Supplies Consoli-
PFSweb Distributors eCOST Eliminations dated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,132 $ 1,800 $ 1,240 $ - $ 14,172
Restricted cash 50 1,746 815 - 2,611
Accounts receivable, net 18,459 26,746 4,037 (1,104 ) 48,138
Inventories, net - 38,226 6,348 - 44,574
Other receivables 173 9,344 - - 9,517
Prepaid expenses and other current assets 1,852 1,308 49 - 3,209
Total current assets 31,666 79,170 12,489 (1,104 ) 122,221
PROPERTY AND EQUIPMENT, net 11,956 35 334 - 12,325
NOTES RECEIVABLE FROM AFFILIATES 18,145 - - (18,145 ) -
INVESTMENT IN AFFILIATES 38,104 - - (38,104 ) -
IDENTIFIABLE INTANGIBLES - - 6,025 - 6,025
GOODWILL - - 15,362 - 15,362
OTHER ASSETS 655 - 139 - 794
Total assets 100,526 79,205 34,349 (57,353 ) 156,727
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations $ 13,287 $ 14,197 $ - $ - $ 27,484
Trade accounts payable 6,388 41,999 9,148 (1,104 ) 56,431
Accrued expenses 9,806 6,924 3,599 - 20,329
Total current liabilities 29,481 63,120 12,747 (1,104 ) 104,244
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion 3,194 - - - 3,194
NOTES PAYABLE TO AFFILIATES - 6,005 12,140 (18,145 ) -
OTHER LIABILITIES 1,320 - 339 - 1,659
Total liabilities 33,995 69,125 25,226 (19,249 ) 109,097
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock 47 - 19 (19 ) 47
Capital contributions - 1,000 - (1,000 ) -
Additional paid-in capital 91,885 - 28,059 (28,059 ) 91,885
Retained earnings (accumulated deficit) (27,498 ) 6,295 (18,955 ) (6,241 ) (46,399 )
Accumulated other comprehensive income 2,182 2,785 - (2,785 ) 2,182
Treasury stock (85 ) - - - (85 )
Total shareholders' equity 66,531 10,080 9,123 (38,104 ) 47,630
Total liabilities and shareholders' equity $ 100,526 $ 79,205 $ 34,349 $ (57,353 ) $ 156,727
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Three Months Ended September 30, 2006
(In Thousands)
Supplies Consoli-
PFSweb Distributors eCOST Eliminations dated
REVENUES:
Product revenue, net $ - $ 55,917 $ 16,676 $ - $ 72,593
Service fee revenue 15,553 - - - 15,553
Service fee revenue - affiliate 1,913 - - (1,913 ) -
Pass-thru revenue 6,254 - - (116 ) 6,138
Total revenues 23,720 55,917 16,676 (2,029 ) 94,284
COSTS OF REVENUES:
Cost of product revenue - 50,539 16,360 (10 ) 66,889
Cost of service fee revenue 12,408 - - (640 ) 11,768
Cost of pass-thru revenue 6,254 - - (116 ) 6,138
Total costs of revenues 18,662 50,539 16,360 (766 ) 84,795
Gross profit 5,058 5,378 316 (1,263 ) 9,489
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 6,715 2,318 3,560 (1,263 ) 11,330
MERGER INTEGRATION EXPENSE - - 486 - 486
AMORTIZATION OF IDENTIFIABLE INTANGIBLES - - 204 - 204
Total operating expenses 6,715 2,318 4,250 (1,263 ) 12,020
Income (loss) from operations (1,657 ) 3,060 (3,934 ) - (2,531 )
INTEREST EXPENSE (INCOME), NET (33 ) 600 (10 ) - 557
Income (loss) before income taxes (1,624 ) 2,460 (3,924 ) - (3,088 )
INCOME TAX PROVISION (BENEFIT) (711 ) 932 - - 221
NET INCOME (LOSS) $ (913 ) $ 1,528 $ (3,924 ) $ - $ (3,309 )
EBITDA $ (102 ) $ 3,064 $ (3,649 ) $ - $ (687 )
Adjusted EBITDA $ 104 $ 3,064 $ (3,163 ) $ - $ 5
A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA follows:
Net income (loss) $ (913 ) $ 1,528 $ (3,924 ) $ - $ (3,309 )
Income tax expense (benefit) (711 ) 932 - - 221
Interest expense (income) (33 ) 600 (10 ) - 557
Depreciation and amortization 1,555 4 285 - 1,844
EBITDA $ (102 ) $ 3,064 $ (3,649 ) $ - $ (687 )
Stock-based compensation 206 - - - 206
Merger integration expense - - 486 - 486
Adjusted EBITDA $ 104 $ 3,064 $ (3,163 ) $ - $ 5
PFSweb, Inc. and Subsidiaries
Unaudited Consolidating Statements of Operations
For the Nine Months Ended September 30, 2006
(In Thousands)
Supplies Consoli-
PFSweb Distributors eCOST Eliminations dated
REVENUES:
Product revenue, net $ - $ 185,199 $ 67,248 $ - $ 252,447
Service fee revenue 47,681 - - - 47,681
Service fee revenue - affiliate 6,415 - - (6,415 ) -
Pass-thru revenue 14,471 - - (343 ) 14,128
Total revenues 68,567 185,199 67,248 (6,758 ) 314,256
COSTS OF REVENUES:
Cost of product revenue - 171,269 64,481 (52 ) 235,698
Cost of service fee revenue 36,479 - - (1,966 ) 34,513
Cost of pass-thru revenue 14,471 - - (343 ) 14,128
Total costs of revenues 50,950 171,269 64,481 (2,361 ) 284,339
Gross profit 17,617 13,930 2,767 (4,397 ) 29,917
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 19,583 7,566 11,486 (4,397 ) 34,238
MERGER INTEGRATION EXPENSE - - 1,129 - 1,129
AMORTIZATION OF IDENTIFIABLE INTANGIBLES - - 545 - 545
Total operating expenses 19,583 7,566 13,160 (4,397 ) 35,912
Income (loss) from operations (1,966 ) 6,364 (10,393 ) - (5,995 )
INTEREST EXPENSE (INCOME), NET (98 ) 1,592 11 - 1,505
Income (loss) before income taxes (1,868 ) 4,772 (10,404 ) - (7,500 )
INCOME TAX PROVISION (BENEFIT) (1,211 ) 1,791 - - 580
NET INCOME (LOSS) $ (657 ) $ 2,981 $ (10,404 ) $ - $ (8,080 )
EBITDA $ 2,695 $ 6,371 $ (9,628 ) $ - $ (562 )
Adjusted EBITDA $ 3,381 $ 6,371 $ (8,110 ) $ - $ 1,642
A reconciliation of net income (loss) to EBITDA and Adjusted EBITDA follows:
Net income (loss) $ (657 ) $ 2,981 $ (10,404 ) $ - $ (8,080 )
Income tax expense (benefit) (1,211 ) 1,791 - - 580
Interest expense (income) (98 ) 1,592 11 - 1,505
Depreciation and amortization 4,661 7 765 - 5,433
EBITDA $ 2,695 $ 6,371 $ (9,628 ) $ - $ (562 )
Stock-based compensation 686 - - - 686
Merger integration expense - - 1,129 - 1,129
Loss on sales transaction to former eCOST customer
389
389
Adjusted EBITDA
$ 3,381 $ 6,371 $ (8,110 ) $ - $ 1,642
eCOST.com, Inc.
Selected Operating Data
Three Months Ended
September 30,
2007 2006
Total Customers (1) 1,720,259 1,615,730
Active Customers (2) 162,583 326,530
New Customers (3) 21,462 34,124
Number of Orders (4) 64,975 51,922
Average Order Value (5) $ 405 $ 361
Advertising Expense (6) $ 219,800 $ 436,000
Cost to Acquire a New Customer (7) $ 7.08 $ 12.78
(1)
Total customers have been calculated as the cumulative number of customers for which orders have been taken from eCOST.com's inception to the end of the reported period.
(2)
Active customers consist of the approximate number of customers who placed orders during the 12 months prior to the end of the reported period.
(3)
New Customers represent the number of persons that established a new account and placed an order during the reported period.
(4)
Number of orders represents the total number of orders shipped during the reported period (not reflecting returns).
(5)
Average order value has been calculated as gross sales divided by the total number of orders during the period presented. The impact of returns is not reflected in average order value.
(6)
Advertising expense includes the total dollars spent on advertising during the reported period, including internet, direct mail, print and e-mail advertising, as well as customer list enhancement services.
(7)
Catalog expense ($67,811) was not included in the 2007 calculation as it is used for retention and not acquisition. Previously, certain customer retention costs as reported were included in the cost to acquire new customers.
Contact:
PFSweb, Inc.
Mark C. Layton, 972-881-2900
Senior Partner and Chief Executive Officer
or
Thomas J. Madden, 972-881-2900
Senior Partner and Chief Financial Officer
or
Investor Relations:
KCSA Worldwide
Todd Fromer / Garth Russell
212-896-1215 / 212-896-1250
[email protected] /
[email protected]--------------------------------------------------------------------------------
Source: PFSweb, Inc.
AH price up 9%.
market seems appreciating these numbers.
I like this part:
PFSW: Adds 3 New Contracts Worth $6M-$8M Total for BPO SolutionsTuesday , November 13, 2007 17:15ET
By Michael Cavallaro,
[email protected]PFSweb, Inc. (NASDAQ: PFSW) announced the addition of three new service fee clients worth approximately $6-8M over the various terms of the agreements, based on current client projections. Neither PFSweb nor the clients disclosed the value of any of the individual contracts. Stated Mike Willoughby, President of PFSweb's services division, "These agreements represent continued traction for our world-class BPO solutions in North America and Europe. We continue to be excited by the potential for further new contracts as our pipeline remains robust at approximately $40M, which includes over $12M in proposals added in the third quarter.
Quote
I thought you didn't own the stock. Triple applaud for your contribution to this thread hyhl.
;D That is my style. After I buy some shares of a stock, I will try to dig out all bad aspects of the company. I sit tight, but I prepare for the worst.
From Yahoo msg board:
one thing I found very encouraging is the continued drop in customer acquisition cost for ecost. It was now at $7.08 per customer at Q3 vs. $9.76 at Q2. They are being very selective about their customers and this showed in the improved EBITDA.
I like it very much!
The alleged retailer: tractor supply company.
New (PFSW provided?) site:
http://beta07.tractorsupply.com
International version of ecost. (Canada and Europe)
Haha, David, you will be able to buy from ecost next year.
First we've had the following press release:
• PFSweb Partners with Three New Service Fee Clients (http://biz.yahoo.com/bw/071113/20071113006249.html?.v=1)
Business Wire (Tue 4:05pm)
These aren't big deals, but two of them are in Europe with well known names (Loreal and Proximus) and this tells me this business unit is getting traction in the European market. I've been learning that this "service fee" segment is perhaps the most important in driving profitability for PFSW as a whole, because it carries a 25-30% gross margin, while, for example, at eCost.com the company aims at achieving just 9-10% gross margin.
Then we've had the 3rd quarter earnings release:
• PFSweb Reports Second Consecutive Quarter of Net Income and $3.2M in Adjusted EBITDA (http://biz.yahoo.com/bw/071113/20071113006596.html?.v=1)
Business Wire (Tue 4:06pm)
These results don't show the same sequential improvement that we've seen in Q2 2007, but they're not disappointing either.
Total revenue was up 5.66% sequentially to $112 M, even though eCost revenue remained flat. Net income increased just a little bit to $162,000 from $154,000 in Q2 2007 (and minus $3.2 M in Q3 2006). Adjusted EBITDA was $3.2 M, compared to $3.4 M in the prior quarter and just $5 K in Q3 2006.
There's a lot more to talk about on the specifics of these results, but, because I'm sick and late, let me just say that I'm pleased with them and remain confident about this company's long term outlook.
Then we've had the conference call. They didn't provide much light into the 4th quarter or next year ... I just captured two important issues, one related to expansion (eCost will start selling to Canadian and European costumers - this is great, there isn't as much competition in Europe and I believe there will be more pricing power) and the other related to valuation:
- According to PFSW's CEO, its competitors are being valued by the market or in private transactions at an average of 15 times EBITDA. If we consider PFSW's 2007 EBITDA will be about $10 M, it should then be a $150 M market cap company to be valued at average. But no, it is just a $57 M market cap. The stock would need to rise to $3.26 to be valued at average.
I guess this earnings release won't be powerful enough to push PFSW above the $1.59 resistance level, at least not over the short term, but I believe it will be enough to keep the stock comfortably above $1 until we get more significant news.
Since the long term outlook remains as I expected I'll keep holding PFSW for the long term. On my valuation model I've just changed the EPS multiple estimate, cutting it from roughly 27 to 20, so now the optimal selling price given by my valuation model is $4.51 (http://www.3stocksonfire.org/fundamental.model.php?ticker=PFSW&portfolio=main).
AFTER HOURS - TOP STORY.......
(PFSW)
PFSweb Adds 3 New Contracts
Worth $6M-$8M Total for BPO Solutions
PFSweb, Inc. (PFSW) announced the addition of three new service
fee clients worth approximately $6-8M over the various terms of the
agreements, based on current client projections. Neither PFSweb
nor the clients disclosed the value of any of the individual contracts.
Stated Mike Willoughby, President of PFSweb's services division,
"These agreements represent continued traction for our world-class
BPO solutions in North America and Europe. We continue to be excited
by the potential for further new contracts as our pipeline remains
robust at approximately $40M, which includes over $12M in proposals
added in the third quarter.
AFTER HOURS - TOP STORY.......
(PFSW)
PFSweb Adds 3 New Contracts
Worth $6M-$8M Total for BPO Solutions
PFSweb, Inc. (PFSW) announced the addition of three new service
fee clients worth approximately $6-8M over the various terms of the
agreements, based on current client projections. Neither PFSweb
nor the clients disclosed the value of any of the individual contracts.
Stated Mike Willoughby, President of PFSweb's services division,
"These agreements represent continued traction for our world-class
BPO solutions in North America and Europe. We continue to be excited
by the potential for further new contracts as our pipeline remains
robust at approximately $40M, which includes over $12M in proposals
added in the third quarter.
Press Release Source: PFSweb, Inc.
PFSweb Reports Second Consecutive Quarter of Net Income and $3.2M in Adjusted EBITDA
Tuesday November 13, 4:06 pm ET
Service Fee Business Increases Revenue 18% in the Third Quarter; Announces Several New Client Agreements
eCOST.com Financial Performance Continues To Improve
PLANO, Texas--(BUSINESS WIRE)--PFSweb, Inc. (Nasdaq: PFSW - News), a global provider of business process outsourcing ("BPO") solutions for both online and traditional commerce, today announced its financial results for the third quarter and nine months ended September 30, 2007.
Summary of consolidated results for the third quarter ended September 30, 2007:
-- Total reported revenue was $112.0 million, compared to $94.3 million for the third quarter of 2006;
-- eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million for the same period last year;
-- Adjusted EBITDA (as defined) was $3.2 million versus $5,000 for the same period last year;
-- Net income was $162,000 or $0.00 per basic and diluted share, compared to a net loss of $3.3 million, or $0.07 per basic and diluted share, for the third quarter of 2006;
-- Merchandise sales (as defined) totaled approximately $751 million for the third quarter of 2007 versus approximately $720 million for the same period last year;
-- Total cash, cash equivalents and restricted cash equaled $16.8 million as of September 30, 2007.
Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "This is the second consecutive quarter of consolidated profit since completing eCOST.com's integration. In addition, Adjusted EBITDA increased to $3.2M from just $5,000 in the third quarter of 2006. These results represent steady growth in our Services Business and a more efficient, improved eCOST.com. Going into the peak holiday shopping season, which we expect will be eCOST.com's strongest quarter moving forward, we are confident in our ability to deliver another strong financial performance and currently expect to be toward the high end of our consolidated Adjusted EBITDA guidance for 2007 of $8 to $10 million."
Summary of consolidated results for the nine months ended September 30, 2007:
Total reported revenue was $324.8 million, compared to $314.3 million for the nine months ended September 30, 2006;
Adjusted EBITDA (as defined) was $7.3 million versus $1.6 million for the same period last year;
Net loss was $2.0 million, or $0.04 per basic and diluted share, compared to a net loss of $8.1 million, or $0.19 per basic and diluted share, for the nine months ended September 30, 2006;
Merchandise sales (as defined) totaled nearly $2.1 billion versus $1.9 billion for the same period last year.
Please note that the prior year's nine months consolidated results only include the financial results for eCOST.com from the date the merger closed on February 1, 2006 through September 30, 2006.
Summary of results by business:
Service Fee Business:
For the third quarter of 2007, Service Fee revenue increased 18% to $18.4 million, compared with $15.6 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.0 million for the third quarter of 2007, compared to $0.1 million for the same period last year.
For the nine months ended September 30, 2007, Service Fee revenue increased 11% to $53.0 million, from $47.7 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $4.3 million for the nine months ended September 30, 2007, compared to $3.4 million for the same period last year.
The increases in Service Fee revenue and Adjusted EBITDA are primarily attributable to activity from new clients that were added late in 2006, increased project activity in the current year and the favorable impact of exchange rates. In addition, the Service Fee revenue for the third quarter of 2007 benefited from a shift in timing of transaction volumes from a large client into this quarter as opposed to earlier in the year.
Mike Willoughby, President of PFSweb's Services Division commented, "During the quarter, the Service Fee Business excelled, generating nearly 20% revenue growth (excluding pass-through activity). We are also pleased to announce several new client agreements were signed in the recent months. We believe this new business is driven by our ability to provide clients with global scale, world-class infrastructure and custom solutions. We continue to be excited by the potential for further new contracts as our new business pipeline remains robust at approximately $40 million, which includes over $12 million in proposals added in the third quarter."
Supplies Distributors Business:
For the third quarter of 2007, Supplies Distributors revenue was $58.3 million, compared to $55.9 million for the same period last year. Adjusted EBITDA was $1.6 million for the third quarter of 2007, compared to $3.1 million for the same period last year. The decline in Adjusted EBITDA is primarily attributable to certain incremental inventory cost reductions that occurred in the 2006 period.
For the nine months ended September 30, 2007, Supplies Distributors revenue was $174.7 million, compared to $185.2 million for the same period last year. Adjusted EBITDA was $5.0 million for the nine months ended September 30, 2007, as compared to $6.4 million for the same period last year.
Mr. Willoughby continued, "During the third quarter, results for the Supplies Distributors Business were within our expectations, with revenue of $58.3 million, a 4.3% increase over prior year, and gross margin of 6.9%. Revenue for the 2007 nine month period reflects a decline year over year due to reduced vendor promotional activity, the impact of foreign currency fluctuations and lower unit volumes as compared to the prior year."
eCOST.com Business:
For the third quarter of 2007, eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million in the third quarter of 2006. Prior year revenue was negatively impacted by service and product merchandising issues incurred in conjunction with the 2006 integration activities of eCOST.com into the Company's operations. On a sequential basis, eCOST.com's quarterly revenue remained steady compared to $27.1 million in the second quarter of 2007 and improved significantly compared to $21.6 million in the first quarter of 2007. Adjusted EBITDA for eCOST.com in the quarter was a loss of $0.4 million, a significant improvement as compared to a loss of $3.2 million in the same quarter of 2006, a loss of $0.6 million in the second quarter of 2007 and a loss of $0.9 million for the first quarter of 2007.
For the nine months ended September 30, 2007, eCOST.com revenues increased nearly 13% to $75.7 million, compared to $67.2 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the nine months ended September 30, 2007 was a loss of $1.9 million, compared to a loss of $8.1 million for the same period last year. The prior year nine month period results for eCOST.com reflect only eight months of activity from the date of acquisition of February 1, 2006 through September 30, 2006.
Mr. Layton continued, "We are pleased with eCOST.com's performance now that we have improved and streamlined its operations. These advancements have led to significant improvements in gross margins and Adjusted EBITDA results for the quarter and nine-month results. Revenues for the business were up about 12.5% for the nine months ended September 30, 2007 from the prior year period and gross profit margins increased to 8.4%. The improved gross margins are due to broader product mix, improved pricing controls, freight initiatives, reduced credit card chargeback activity and an increased number of Virtual Warehouse agreements," concluded Mr. Layton.
Significant operating events for third quarter of 2007:
-- Service Fee Business added four new partners totaling $3 to $4 million in annualized service fee revenue, based on client projections once fully implemented.
-- A large specialty retailer signed a two year agreement for PFSweb to provide a seamless customer service solution in the U.S. that supports its direct to consumer business unit.
-- Microlife AG Europe and the Blood Pressure Association (BPA) in the United Kingdom signed a two-year agreement with PFSweb for website design, configuration and hosting, order fulfillment, distribution, warehousing and financial management support for their e-commerce partnership in the U.K.
-- L'Oreal, the world's largest beauty company, selected PFSweb to provide an end-to-end fulfillment and customer service solution for its Diesel brand perfume "Fuel for Life" line. PFSweb will provide a full service solution for L'Oreal's online store, www.diesel-parfums.com/factory, including web hosting support, warehousing, order processing, fulfillment & distribution, kitting and assembly, returns and multi-lingual call center support from its European facility in Liege-Belgium.
-- Proximus, the largest mobile telecommunications operator in Belgium, selected PFSweb to provide a full service solution for their on-line store, http://www.e-proximus.be/, including web design and hosting, warehousing, order processing, fulfillment & distribution, returns and multi-lingual call center support.
-- PFSweb was named to Deloitte & Touche's 'Fast 500' and 'Texas Technology Fast 50' as one of the fastest growing companies in the U.S. and Texas over the past five years
-- PFSweb named a 'Top 100 Great Supply Chain Partner' by Global Logistics and Supply Chain Strategies Magazine
-- eCOST.com launched enhanced catalogue search capability powered by Visual Sciences in time for the Holiday season.
-- eCOST.com added 2 new Virtual Warehouses in the third quarter of 2007, bringing the total number of Virtual Warehouses to 14. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales.
Financial Guidance for Fiscal Year 2007
PFSweb continues to target total consolidated revenues, excluding pass-through revenues, of approximately $420 million to $435 million and consolidated Adjusted EBITDA of $8 – $10 million for 2007. Capital expenditures for 2007 are estimated to be approximately $6 - $7 million, including amounts financed under capital leases. Achieving these targets will depend upon, among other things, achieving and maintaining the currently expected significant improvement in operations from eCOST.com and continued strong performance from our Service Fee and Supplies Distributors businesses on a year-over-year basis.
Conference Call Information
Management will host a conference call at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on November 13, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 694-4728 and enter the pin number (9363780) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through December 13, 2007 at (877) 519-4471, pin number (9363780). The replay also will be available at the company's web site for a limited time.
Non-GAAP Financial Measures
This news release contains the non-GAAP measures Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.
EBITDA represents earnings (or losses) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, merger integration related expenses and a loss on a sales transaction to a former eCOST.com customer. EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA and Adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital spending, stock-based compensation, merger related expenses and certain other expenses, which items may vary from different companies for reasons unrelated to overall operating performance.
Merchandise Sales
Merchandise sales represent the estimated value of all fulfillment activity that flows through PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount of such sales on its financial statements, excluding service fee revenues that PFSweb might recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating metric to allow investors to gain a more thorough understanding of its business and business volume, in addition to GAAP net revenue.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (NASDAQ: PFSW - News), visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.
The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2006 identifies certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual Report and the Risk Factors described therein. These factors include: our ability to retain and expand relationships with existing clients and attract and implement new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients' projections or transaction volume or product sales; our dependence upon our agreements with IBM; our dependence upon our agreements with our major clients; our client mix, their business volumes and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the e-commerce, outsourcing, government regulation both foreign and domestic and the market for our services; whether we can continue and manage growth; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer and supplier concentration of our business; the unknown effects of possible system failures and rapid changes in technology; foreign currency risks and other risks of operating in foreign countries; potential litigation; potential delisting; our dependency on key personnel; the impact of new accounting standards and changes in existing accounting rules or the interpretations of those rules; our ability to raise additional capital or obtain additional financing; our ability and the ability of our subsidiaries to borrow under current financing arrangements and maintain compliance with debt covenants; relationship with and our guarantees of certain of the liabilities and indebtedness of our subsidiaries; whether outstanding warrants issued in a prior private placement will be exercised in the future; our ability to successfully the anticipated benefits of the merger: eCOST's potential indemnification obligations to its former parent; eCOST's ability to maintain existing and build new relationships with manufacturers and vendors and the success of its advertising and marketing efforts; eCOST's ability to increase its sales revenue and sales margin and improve operating efficiencies and eCOST's ability to generate a profit and cash flows sufficient to cover the values of its intangible assets. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.
Contact:
PFSweb, Inc.
Mark C. Layton, 972-881-2900
Senior Partner and Chief Executive Officer
or
Thomas J. Madden, 972-881-2900
Senior Partner and Chief Financial Officer
or
Investor Relations:
KCSA Worldwide
Todd Fromer / Garth Russell
212-896-1215 / 212-896-1250
[email protected] /
[email protected]--------------------------------------------------------------------------------
Source: PFSweb, Inc.
PFSW is definitely undervalued, but I expect it to remain between $1 and $1.6 for some time to come:
QuoteI guess this earnings release won't be powerful enough to push PFSW above the $1.59 resistance level, at least not over the short term, but I believe it will be enough to keep the stock comfortably above $1 until we get more significant news.
As I read PFSW's 3rd quarter results (http://biz.yahoo.com/bw/071113/20071113006596.html?.v=1), I almost wish the Supplies Distributors Business and the eCOST.com Business didn't exist. These are very low margin businesses. It will be good if they just don't lose money. Of course, it is the management's objective to make money with these businesses, but they will always be very low margin businesses.
The value seems to be inside the Service Fee Business:
«For the third quarter of 2007, Service Fee revenue increased 18% to $18.4 million, compared with $15.6 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.0 million for the third quarter of 2007, compared to $0.1 million for the same period last year.»
«Mike Willoughby, President of PFSweb's Services Division commented, "During the quarter, the Service Fee Business excelled, generating nearly 20% revenue growth (excluding pass-through activity). We are also pleased to announce several new client agreements were signed in the recent months. We believe this new business is driven by our ability to provide clients with global scale, world-class infrastructure and custom solutions. We continue to be excited by the potential for further new contracts as our new business pipeline remains robust at approximately $40 million, which includes over $12 million in proposals added in the third quarter."»
In the conference call management said the Service Fee Business is a 30% - 35% gross margin business. Gross margin was 29.8% in Q3 2007.
We've also had significant positive news for this business segment this week:
• PFSweb Partners with Three New Service Fee Clients (http://biz.yahoo.com/bw/071113/20071113006249.html?.v=1)
Business Wire (Tue, Nov 13)
I must say that I've bought PFSW because of eCost, but now I see that eCost isn't the most important business for PFSW's long term success. This means I didn't know a lot about the company and need to improve on my "pre-buying" analysis.
Anyway, I also enjoy this "support for e-commerce" business a lot, perhaps even more than an electronics goods online retailer business.
I'll keep holding PFSW for the long term.
David, do you know why OSTK went up a lot recently? Thanks.
http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html
Ecost starts to respond to reviews on bizrate, that is interesting.
Quote from: hyhl on November 15, 2007, 08:52:41 PM
David, do you know why OSTK went up a lot recently? Thanks.
I don't know hyhl, so I just initiated a thread at the Watch List message board (http://www.3stocksonfire.org/trading/index.php?topic=10601.0) so I can study it later. Thanks.
Quote from: hyhl on November 17, 2007, 04:52:52 PM
http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html
Ecost starts to respond to reviews on bizrate, that is interesting.
Thanks for the link hyhl :)
It seems eCost has been improving its costumer service:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=41985;image)
The sector continues to be very attractive in my view:
«You may have noticed just today in today's Wall Street Journal, Forrester Research was quoted as saying, "US consumers are forecasted to spend about $33 billion on internet purchases between Thanksgiving and Christmas." That's up 21% from last year. I think the overall retail projections for the year, a growth of about 4% overall, so clearly traditional retail is predicted to have a soft holiday season, but web commerce in general is continuing to flourish as more consumers flock to gain the benefits of convenient shopping, larger selections, and easier access to in stock products with a growing in the security and capability of web merchants like eCOST.»
PFSW's facility in Belgium will help eCost sell its products also to European costumers, which I believe will provide another source of strong growth for the company.
I'll continue holding PFSW for the long term.
check it out!
today PFSW appeared on MSN but this is what they had to say about it.
QuotePFSWeb Inc: Stock Rating SummaryPFSWeb Inc, a micro-cap value company in the consumer services sector, is expected to significantly underperform the market over the next six months with above average risk.
10 is the best possible rating.
Quote from: pinoleropuro on November 27, 2007, 04:24:05 PM
check it out!
today PFSW appeared on MSN but this is what they had to say about it.
QuotePFSWeb Inc: Stock Rating SummaryPFSWeb Inc, a micro-cap value company in the consumer services sector, is expected to significantly underperform the market over the next six months with above average risk.
10 is the best possible rating.
Yeah, like they knew the company. They say that because like most people they're bearish on the consumer and small caps. They apply a general rule to all stocks, not considering the specifics of each business. I would and will ignore that information.
Even though the valuation of e-tailers doesn't reflect it, the sector continues to grow strongly:
Cyber Monday online sales jump 21% (http://money.cnn.com/2007/11/27/technology/bc.apfn.holiday.onlinesa.ap/index.htm?postversion=2007112718)
Consumers spend $733 million online on Monday after Thanksgiving - first official day of the online holiday shopping season - far more than expected.
This should benefit eCost.com. I wonder when will the company announce it will start selling also in Europe, hopefully using the facilities it has in Belgium. It's just that there isn't any strong brand name in Europe like the ones you have in the US (beyond Amazon) and I believe this could be a huge opportunity for eCost, especially with the Euro this strong ... the products I see at eCost are incredible bargains for an European with euros in his pocket instead of USD.
The stock took a beating like most micro caps ... but I'm pretty positive this is a multi-bagger if held for a couple of years, fundamental trends are positive and the stock is undervalued (it should be 200% higher considering other companies' in similar industries valuation).
I'll keep holding PFSW for the long term.
Wow, eCost.com is doing much better than the industry average:
• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday (http://biz.yahoo.com/bw/071128/20071128005246.html?.v=1)
Business Wire (Wed 8:00am)
Great news ;)
yes, finally our stocks are going to be rewarded
:)
Quote from: terainvestment on November 28, 2007, 10:24:32 AM
yes, finally our stocks are going to be rewarded
:)
yeah, I hope so :)
«From November 22 through November 26, eCOST.com's booked revenue increased 67% compared with the same Thanksgiving holiday period last year. On Black Friday, eCOST.com saw a 105% increase in demand vs. Black Friday 2006.»
These numbers are really significant. In Q4 2006 eCost.com had $21.5 M in revenue and a 67% increase would lead to about $36 M in sales for the quarter. Management said the break even point for eCost.com is about $30 M so this can lead to a very significant upside surprise to the company's full year 2007 guidance of $8 M - $10 M adjusted EBITDA.
This fundamental information should be enough to drive PFSW 50% higher or more. Volume still didn't kick in today ... I think we can have a shot at $1.5 today, everything is right for it, the general market mood, the news, the market cap ... we'll see, it wouldn't be bad to close where we are now.
QuoteThis fundamental information should be enough to drive PFSW 50% higher or more. Volume still didn't kick in today ... I think we can have a shot at $1.5 today, everything is right for it, the general market mood, the news, the market cap ... we'll see, it wouldn't be bad to close where we are now.
Bah, closed around the same place. PFSW has this weird way of reacting to news ... remember when they gave that very positive and surprising update for eCost and the stock still remained around $0.9? And then the actual results came out much better than expected and still, the stock remained below $1? Just a few weeks later we've had that 60% upside move ... perhaps the same will happen now. There's no doubt the improvement at eCost.com is substantial, given the following news release:
• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday (http://biz.yahoo.com/bw/071128/20071128005246.html?.v=1)
Business Wire (Wed 8:00am)
Perhaps in a few weeks we'll have another 60% upside move, but now up from a $1.20 base, it should take us towards $1.9 - $2. Given the fundamentals, it's probable.
I'll keep holding PFSW for the long term.
Just 29,800 shares traded yesterday on PFSW, almost nobody is watching this puppy. I don't care about that. Fundamentally the company is doing even better than I expected and I see it as a multi-bagger over the long term. PFSW is worth a lot more than $59 M, no doubt about it.
Perhaps it will still go down to $1.11 or something like that to make an inverse head and shoulders pattern, I don't know.
I'll hold PFSW for the long term.
We already know eCost is doing much better than expected:
• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday (http://biz.yahoo.com/bw/071128/20071128005246.html?.v=1)
Business Wire (Wed, Nov 28)
But we still don't know how the more important (because it sports a much higher gross margin) service fee business is doing in Q4. We'll know when the company reports the 4th quarter and full year results, probably in February 2008.
In the meantime I'll keep holding PFSW for the long term.
Last month I posted the monthly uniques of ecost for the month of October and have done so again today, but for the month of November. "The monthly uniques of a website is the absolute number of new monthly visitors to a website and doesn't include repeat visitors." So, based on the information from quantcast.com, ecost has had a 65% increase in new visitors from October to November. That's a 65% boost in traffic and it not even christmas. >:D >:D
Quote from: visualjourney on December 06, 2007, 10:01:34 AM
Last month I posted the monthly uniques of ecost for the month of October and have done so again today, but for the month of November. "The monthly uniques of a website is the absolute number of new monthly visitors to a website and doesn't include repeat visitors." So, based on the information from quantcast.com, ecost has had a 65% increase in new visitors from October to November. That's a 65% boost in traffic and it not even christmas. >:D >:D
Thanks for this information visualjourney :)
Friday was the highest volume day for PFSW since the following news was released ...
• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday (http://biz.yahoo.com/bw/071128/20071128005246.html?.v=1)
Business Wire (Wed, Nov 28)
... and price was up 4%. It seems that finally investors are paying some attention to undervalued micro caps.
About 9 months ago most people thought eCost would file for bankruptcy. Now it is a profitable and fast growing operation. The service fee side of PFSW is also doing very well.
I think the 30%-50% rise in the share price doesn't reflect the change in fundamentals and at $61 M market cap PFSW is very attractive. It should be at least a $150 M market cap (15 times EBITDA) considering the current financial information.
I'll keep holding PFSW for the long term.
PFSW is back to where it was when I made my latest update, that is, last Monday. eCost's improvement seems to be more pronounced than even I thought. Fundamental trends at PFSW are positive, the company turned to profitability, now we just have to patiently keep holding the stock to earn a few bags of profits.
U.S. Internet Sales Slow as Consumers Limit Spending (Update1)
By Heather Burke
Dec. 16 (Bloomberg) -- The growth of U.S. Internet sales slowed to 18 percent this holiday season from the year-ago period as consumers limited spending because of declining home values and higher gasoline prices.
Online spending from Nov. 1 through Dec. 14 was $22.7 billion, Reston, Virginia-based ComScore Inc. said today in a statement. Web sales in November and December may advance only 20 percent, a record low for the industry, and slower than the 26 percent gain made last year.
U.S. retailers may see the worst holiday sales growth since 2002. Customers, grappling with $3-a-gallon gasoline and the first drop in the median home price since the Great Depression, have reduced purchases. Wal-Mart Stores Inc. and Toys ``R'' Us Inc. offered discounts of 50 percent or more and free shipping on Web purchases to attract shoppers.
``Many consumers across all income segments are either feeling the pinch this holiday season or are lacking the confidence to spend at the rate they had in the past,'' ComScore Chairman Gian Fulgoni said in the statement.
Web sales have increased 17 percent since Nov. 1 among those earning $50,000 to $100,000 and 28 percent among consumers with incomes of more than $100,000, according to an analysis by ComScore. Consumers earning less than $50,000 have spent 10 percent more on online shopping than in 2006, dragging down overall results, ComScore said.
`Green Monday'
U.S. retailers' shares have dropped during the holiday season, with the Standard & Poor's 500 Retailing Index falling 11 percent since the start of November, compared with a 5.3 percent decline on the S&P 500.
Amazon.com Inc., the world's largest online retailer, fell $3.32, or 3.6 percent, to $89.08 on Dec. 14 in Nasdaq Stock Market composite trading. EBay Inc., the largest global auctioneer, dropped $1.39, or 4.1 percent, to $32.70.
A record $881 million was spent Dec. 10, known as ``Green Monday,'' and was the heaviest Web spending day on record, ComScore said. The remainder of the week saw more ``modest spending,'' Fulgoni said in the statement.
Running Late
Toys ``R'' Us, the biggest U.S. toy chain, was offering free shipping on select orders of $49.99 or more through tomorrow. The Wayne, New Jersey-based retailer was also advertising $20 off of toy purchases of $100 or more through EBay's PayPal.
Macy's Inc., the second-largest U.S. department-store chain, is offering free shipping through tomorrow on purchases of $99 or more on select items. Wal-Mart, the world's largest retailer, on Dec. 14 was offering 97-cent-shipping on a $578 Toshiba laptop computer and a $243.34 Garmin GPS system.
In-store sales fell 2.7 percent in the seven days through Dec. 8, following a 4.4 percent decline a week earlier, Chicago- based research firm ShopperTrak RCT Corp. said LAST week. About 12 percent fewer shoppers visited stores last week, compared with the same period a year ago, ShopperTrak said.
Consumers are completing their holiday shopping later than usual, and they're trimming purchases because of higher food and energy costs. The National Retail Federation in Washington forecast a 4 percent increase in holiday sales this year, the smallest since 2002.
Toys ``R'' Us sales did well the weekend after Thanksgiving, and have been ``erratic'' since, Chief Executive Officer Gerald Storch said in a Dec. 13 interview. Sales on Dec. 22, the Saturday before Christmas may rival Black Friday, the day after Thanksgiving, Storch said.
``We're being more aggressive with promotions but we're not discounting closer to the cost of the product than we did in past years,'' said Storch. ``We have a very aggressive promotional schedule between now and Christmas.''
To contact the reporter on this story: Heather Burke in New York at
[email protected] .
Last Updated: December 16, 2007 14:55 EST
Thanks for this article hyhl :)
QuoteThe growth of U.S. Internet sales slowed to 18 percent this holiday season from the year-ago period ...
It appears that eCost.com is growing a lot faster than the industry average:
«From November 22 through November 26, eCOST.com's booked revenue increased 67% compared with the same Thanksgiving holiday period last year. On Black Friday, eCOST.com saw a 105% increase in demand vs. Black Friday 2006.»
There's reason to be optimistic about eCost.com future. PFSW's valuation, at $56 M, doesn't reflect this at all.
I'll keep holding PFSW for the long term.
PFSW reacted very well to the 200 days SMA support on that awful November dip which almost completely erased my profits. Now the stock is one step away from making a bullish breakout, as it should, given the fundamentals of the company.
If PFSW is able to close above $1.39 that clears the way for a move towards the 2007 high of $1.59. I believe the stock is worth a lot more than that.
I'll keep holding PFSW for the long term.
nice sum up
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_P/threadview?m=tm&bn=14088&tid=38021&mid=38021&tof=6&frt=2
I've read the 3rd quarter conference call transcript (http://www.sec.gov/Archives/edgar/data/1095315/000095013407024153/d51647exv99w1.htm) yet again, and it has a lot of interesting information.
The more I understand PFSW's business, the more I see that eCost isn't the most important in terms of PFSW's profitability, because management targets a 9-10% gross profit margin at eCost, and the Service Fee Business has a 25-30% gross margin target, which in management's words, is "highly leverageable".
The new business pipeline was worth about $40 M at the end of the 3rd quarter, that is, $12 M more than in the preceding quarter. And this doesn't include the new contract wins the company announced in the 4th quarter, which were the following:
• Microlife Chooses PFSweb to Support E-Commerce Partnership with the Blood Pressure Association in the UK (http://biz.yahoo.com/bw/071011/20071011005289.html?.v=1)
Business Wire (Thu, Oct 11)
• PFSweb Partners with Three New Service Fee Clients (http://biz.yahoo.com/bw/071113/20071113006249.html?.v=1)
Business Wire (Tue, Nov 13)
«"It is evident that the solutions we are crafting today for online retail prospects and clients are resonating within the marketplace. Over the last few months, we've noted a marked increase in the number of proposals we have had the opportunity to participate in for high-profile brands. Our willingness to custom-design solutions around unique brand requirements, the quality of our services, our proven international operations and our alignment with leading-edge front-end eCommerce technology platforms are all differentiators that have resulted in a competitive edge."»
eCost also seems to be doing very well lately:
• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday (http://biz.yahoo.com/bw/071128/20071128005246.html?.v=1)
Business Wire (Wed, Nov 28)
There's reason to believe the 4th quarter results will be strong.
From a valuation standpoint PFSW seems to be attractive, trading at 5.9 times 2007 EBITDA, while the largest company in this space (GSIC) just acquired a smaller competitor for 15 times EBITDA, at least that's what PFSW's management says, but I'll confirm the information over my next update:
«On the B2C side our biggest and most common competitors GSI Commerce, we also see Innotrac and historically seen a preview which was recently acquired by GSI for 15 times EBITDA.»
So, GSI Commerce (GSIC) and Innotrac (INOC) are PFSW's main competitors in this Service Fee Business segment.
We'll study these two companies over the upcoming follow up analysis on PFSW.
I'll continue holding PFSW for the long term.
It is interesting to notice that GSIC only earns money in the 4th quarter. But the profit of this single quarter is able to truimph over the loss of all other three quarters.
I wish PFSW could do as well as GSIC in the 4th quarter.
Quote from: hyhl on January 03, 2008, 11:42:28 PM
It is interesting to notice that GSIC only earns money in the 4th quarter. But the profit of this single quarter is able to truimph over the loss of all other three quarters.
I wish PFSW could do as well as GSIC in the 4th quarter.
Yes, that's interesting and weird, since PFSW's service fee business historically didn't have any positive seasonality in Q4. The new stock that I'll cover next will be GSIC.
PFSW is suffering from the same malaise as JAKK and SYX, which are heavily dependent on the US consumer. The "sector followers" or "macro players", who don't pay attention to each company's specific and unique fundamentals are winning the short term battle.
My view is the following:
- Say US consumption stays flat or even goes down 1% in 2008. e-commerce, instead of growing 18% like it did in 2007, will grow just 5%-10%. What does this all mean for tiny eCost, taking market share from competitors which are 100 times larger? Nothing in my view.
Overall eCommerce spending jumped 18% in 2007 vs 2006, yet eCost revenues were up something like 80% in Q4. So, say, eCommerce goes up 5%-10% in 2008, eCost sales will be up "just" 50% ... gee, what a negative outlook, let's sell it for 4 times EBITDA ::)
Unfortunately, only time and the actual specific positive results can turn this negative tide ... between quarterly results we're in the hand of "macroeconomists" (which by the way are often wrong about their macro outlook).
I'll patiently keep holding PFSW for the long term.
PFSW's higher margin service fee business continues to add new clients:
• Urban Brands Selects PFSweb to Support Marianne and Ashley Stewart Online Stores (http://biz.yahoo.com/bw/080108/20080108005032.html?.v=1)
Business Wire (Tue 8:00am)
I'll patiently keep holding PFSW for the long term.
An interesting read:
http://www.sbnonline.com/Local/Article/13760/71/0/Stepping_up.aspx
nice finding hyl, applauds
PFSW is also down with the market;
PFSW: Short Interest DN 3.5% to 676.7K at the End of Dec 2007
Thursday , January 10, 2008 16:50ET
According to new short interest data from NASDAQ, short interest for PFSweb Incorporated (NasdaqSC: PFSW) DECREASED 3.5% to 676,700 shares as reported at month-end December, 2007. Based on PFSW's 20-day average daily share volume of 96,117, it would require approximately 8 day(s) of buying to cover this short interest.
Quotenice finding hyl, applauds
I agree, great article :)
QuotePFSW is also down with the market;
Yes, the most frustrating thing about the negativity of the market is that it drags down almost all stocks, good or bad. This happens because valuation multiple contract. It is also why I still devote some time to analyzing the general market trend, or I would completely ignore it, just like a business owner ignores it as he conducts his business.
A company going from tens of millions of dollars to hundreds of millions or even billions of dollars in value, most of the times, doesn't depend on the macroeconomic landscape but on the company's intrinsic fundamentals. It isn't if the economy grows 1 or 3% that changes a company's long term value in my view.
PFSW's fundamentals have been improving and I love the business model. I'll continue holding PFSW for the long term, regardless of what the stock does over the short term. If I wanted to trade for the short term I wouldn't be in stocks, which, in my view, would have a lot of company specific risk.
There's more to say about this issue ...
.06 bid price OMG
Quote from: capricho on January 22, 2008, 08:52:49 AM
.06 bid price OMG
ah ah ah, what were you trying to do capricho, scare some people? >:D
PFSW was down like any other stock, but fundamentals keep improving ... longer term the stock price will reflect that. There's a reason why Peter Lynch says the first three years after he buys a stock are mostly irrelevant. It's only after three years that you know if you were right or wrong in your investment idea.
I remember when berloga asked: "But David, we have a 50% profit here, shouldn't we just take it?" I said "no, because fundamentals are improving and the stock remains undervalued".
However the stock went down anyway and now, instead of a 50% profit, I have just 3%, as fundamental changes were largely ignored over the last few months, especially in micro caps. So berloga was right in his assessment of reality and I was wrong.
Over the last few months I've learned that the market can always be more inefficient. If I thought PFSW was undervalued at $1.5, I think it is even more undervalued at $1, especially as fundamentals have improved beyond my expectations over the last few months.
I could have sold the stock at $1.5, but because I couldn't integrate that decision into my long term investment strategy, I've opted to keep holding it for the long term. But by "long term" I mean three years from the buying date, which was July 10, 2007. So, just seven months have passed. I need to remain patient and that's what I'll do.
PFSW has been working on the backstage to improve eCost.com, not telling it to investors:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43419;image)
This can be a big deal ... my wife tried to buy stuff from eCost.com this Christmas but they still didn't accept international orders. They do now ;)
http://www.ecost.com/ecost/shop/showcase/international/
With the USD as weak as it is, every price is a bargain for European consumers.
As for the stock ... well, it went down 4.7% on Friday, closing at $1.02 :P I guess that after the first run of the large and medium caps, investors will turn their eyes into undervalued micro caps like PFSW and will push them up.
I'll continue holding PFSW for the long term.
Nothing new on PFSW, I'm just leaving the updated chart:
PFSweb Selects Demandware to Power New End-to-End eCommerce Solution
WOBURN, MA, February 11 / MARKET WIRE/ --
Demandware (www.demandware.com), developer of the breakthrough On-Demand
eCommerce Platform, today announced that PFSweb, Inc. (NASDAQ: PFSW), a leading
business process outsourcing firm specializing in multi-channel commerce and
high-touch customer experience delivery, will embed the Demandware eCommerce
Platform within its new, next-generation end-to-end ecommerce solution. Under
this agreement, PFSweb will integrate and deliver the Demandware eCommerce
Platform along with its services for order management, fulfillment, customer
service, and emarketing, to offer a single unified solution for outsourced
end-to-end ecommerce operations. Complete details on the PFSweb solution can be
found at www.pfsweb.com.
PFSweb customers can now begin to migrate to this new end-to-end solution.
Roots, Canada's leading athletic lifestyle brand, has worked with PFSweb
through the launch of both its U.S. and Canadian online retail businesses.
Roots.com, an Internet Retailer Top 500 site, is expected to migrate to
Demandware within the second quarter of 2008.
"By selecting the combined PFSweb and Demandware solution, we feel we have
positioned Roots.com to serve our current and future customers with the best
possible online experience. This end-to-end solution will allow us to offer an
innovative, tightly integrated multi-channel experience that encourages cross
shopping and is completely representative of the Roots experience," said James
Connell, Director of E-Commerce, Digital Marketing and New Media for Roots. "By
engaging the combined efforts of PFSweb and Demandware, we will be able to
focus on our core competency of operating our store, while benefiting from
expertise of both organizations for IT and logistics."
After a thorough evaluation of ecommerce alternatives, including commercially
available licensed applications and home-grown solutions, PFSweb chose to
partner with Demandware for the clear operational advantages of its on-demand
delivery model and its industry-leading ecommerce merchandising capabilities.
"Demandware provides us with a true competitive advantage," said Mike
Willoughby, President of PFSweb's Services Division. "Outsourcing should not
force merchants to surrender brand and site control. By integrating
Demandware's industry-leading ecommerce platform with PFSweb's market-leading
fulfillment and customer care solutions, we are delivering a very unique
end-to-end ecommerce outsourced solution that combines in-house site control
with outsourced execution, comprised of best-of-breed components."
"The opportunity for a comprehensive technology and BPO product is
significant," said Rob Garf, Vice President and General Manager, Retail
Strategies, in the February 2008 AMR Research Article, "PFSweb + Demandware."
"Some 69% of retailers will replace their current e-commerce platform (for
order capture, catalog and content management, pricing and promotion
management, and order inquiry) by the end of 2008, a recent AMR Research study
shows."
PFSweb selected Demandware based on a number of differentiating capabilities,
including:
-- In-house merchandising control, outsourced business processes:
Recognizing market frustration with the limited merchandising and site
control provided by legacy outsourcing vendors, PFSweb required a solution
that enables its clients to retain full control over site merchandising and
the consumer experience. With Demandware, PFSweb clients have the option to
fully control promotions, catalog, pricing and customer site experiences,
while benefiting from PFSweb's robust support for fulfillment and customer
care.
-- Focus on ecommerce, not infrastructure: By embedding Demandware's on-
demand ecommerce platform, PFSweb and its clients are relieved of the
technical burdens and risk of managing the hardware, database, network and
on-going maintenance required to run a best-in-class ecommerce application.
This burden has led directly to the pitfalls of legacy outsourcing
solutions, such as inflexible technologies and business processes, high
service costs, and difficulty keeping sites current with the latest
ecommerce innovations.
-- Fast launch of new global businesses: A global provider, PFSweb serves
customers that are expanding into international markets. PFSweb clients can
leverage Demandware's multi-site, multi-brand and multi-currency
capabilities to launch and drive new global brands quickly.
-- Simplified access to ecommerce innovation: Because ecommerce is
constantly evolving, outsourced providers must keep their clients at the
forefront of innovation. By selecting Demandware, PFSweb clients can
receive free automatic upgrades quarterly, enabling them to continually
implement ecommerce best practices.
-- Integration across customer touch points: As a provider of outsourced
contact centers and a leader in high-touch customer care, PFSweb required
that its ecommerce platform enable a seamless customer experience between
the site and contact center. With Demandware, PFSweb can fully integrate
pricing, promotions, product content and session behavior to the contact
center, for better customer service and higher conversion.
"Time after time, customers are asking for a new end-to-end ecommerce
solution, one that provides them with the freedom and flexibility to control
their brands and customer site experiences, while enjoying the benefits of
end-to-end process outsourcing," said Stephan Schambach, Chairman and Founder,
Demandware. "With PFSweb, the market now has a best-in-class solution -- full
control over the ecommerce storefront, with the backing of a leading end-to-end
provider."
Hi Rmagos, thanks for posting PFSW's press release (which was issued yesterday before the open, so it was already reflected in the share price):
• PFSweb Selects Demandware to Power New End-to-End eCommerce Solution (http://biz.yahoo.com/iw/080211/0359780.html)
Marketwire (Mon 2:09pm)
"The opportunity for a comprehensive technology and BPO product is significant," said Rob Garf, Vice President and General Manager, Retail Strategies, in the February 2008 AMR Research Article, "PFSweb + Demandware." "Some 69% of retailers will replace their current e-commerce platform (for order capture, catalog and content management, pricing and promotion management, and order inquiry) by the end of 2008, a recent AMR Research study shows."
I can't find the mentioned article on Google. DemandWare website (http://www.demandware.com/index.php) looks cool.
I'm glad that PFSW held $1. Now we just want to see it closing above $1.08 ... this is such a micro-cap that it can fly pretty quickly ... it can happen at any time.
I'll patiently keep holding PFSW for the long term.
http://www.amrresearch.com/Content/View.asp?pmillid=21126
PFSweb and Demandware Form Strategic Partership
PFSweb and Demandware have formed a strategic partnership that will let PFSweb target the enormously growing e-commerce technology market. For the deal, Demandware's software-as-a-service (SaaS) e-commerce platform will supplement PFSweb's own business process outsourcing (BPO) services, which include fulfillment and customer care. The partnership operates more like an OEM. PFSweb is integrating the technology with its existing services, bringing the whole suite to market as a bundled unit and serving as front-line support.
Targeted at organizations with less than $250M in annual online revenue, the complementary combination should give retailers a broad suite of technology and services, while providing flexibility to choose what makes sense or bring certain functions in-house when business dictates.
The opportunity for a comprehensive technology and BPO product is significant. Some 69% of retailers will replace their current e-commerce platform (for order capture, catalog and content management, pricing and promotion management, and order inquiry) by the end of 2008, a recent AMR Research study shows. At the same time, retailers are looking to outsource some of their core online business processes such as call centers and fulfillment. Call centers, an area that often doesn't exist prior to running a direct-to-consumer business, are outsourced to the tune of 36%. And 19% contract with a third-party to manage fulfillment.
This partnership, which will allow PFSweb to provide an embedded technology component to its new end-to-end ecommerce outsourcing offering, was necessary to compete with its largest competitor, GSI Commerce. GSI Commerce, unlike PFSweb, markets its own proprietary e-commerce platform which is bundled with its services. PFSweb sets itself apart by having more flexible components, increased control over merchandising and marketing functions, and the ability to move areas in house if need be.
Unfortunately investors aren't attracted by PFSW's type of business in the current juncture. As it is now, the market values online retailers at no more than 10% of their annual revenues, so I figure www.ecost.com is worth about $10 M (since it sells just a bit more than $100 M a year).
To evaluate PFSW's other businesses I'll use GSIC's valuation, which is the largest operator in the sector, using an EBITDA multiple comparison. GSIC trades at 18.4 times EBITDA. PFSW trades at 4.7 times EBITDA.
If we attach GSIC's EBITDA multiple to PFSW and then add $10 M for eCost's value, we get a $194 M market cap, which is about four times more than PFSW's current market cap of $47 M.
PFSW is clearly and substantially undervalued. I'll continue holding PFSW for the long term.
hmm!!!
http://www.sec.gov/litigation/admin/33-8525.htm (http://www.sec.gov/litigation/admin/33-8525.htm)
this is the response from another person in yahoo boards
QuoteThomas J. Madden
Senior Partner - Chief Financial Officer and Chief Accounting Officer
Thomas J. Madden has served the roles of CAO and CFO for PFSweb since its inception. He previously worked as Chief Financial Officer of Daisytek from 1997 to 2000; acted as Vice President of Finance, Treasurer and Chief Accounting Officer of Daisytek from 1994 to 1997 and as Controller of Daisytek from 1992 to 1994. Prior to joining Daisytek, Mr. Madden served as a financial consultant and audit manager with Arthur Andersen & Co. for 11 years.
Tom received his Bachelor of Science in Accountancy degree from The University of Illinois.
So is this the reason why the stock has been going down?!!! >:(
Now this is Zack's PFSW's screen print.
PFSW closed below $1 for the first time since last August, which is a bearish technical development. Volume picked up a bit. We shall see if this makes investors bail out of PFSW or if it is just a technical trap.
I think the company is so undervalued at these levels that long term investors won't bail out and they'll push the price back above $1 soon.
People continue to see PFSW as eCost, but the way I see it the other parts of PFSW's business are more important and more valuable than eCost. If eCost can at least not lose money that would be good enough for now, and I think it is going to make a small profit in 2008.
The other parts of PFSW's business are currently valued at 3.5 times EBITDA, while competitors in the same industry are typically valued at 15 times EBITDA.
I'll keep holding PFSW for the long term.
(thanks for the information on PFSW pinoleropuro, I just saw it, it's nice to know that Zacks expects 8 cents EPS for PFSW this year)
Horrible reviews:
http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html
What is going on at ecost?
Ecost may not be a sufficient condition for stock shooting up, but it is a necessary condition.
Companies use EBITDA when they are not capable of making money.
Quote from: hyhl on February 28, 2008, 10:52:26 PM
Companies use EBITDA when they are not capable of making money.
Thanks for these informations hyhl.
PFSW indeed looks cheaper than its competitors on an EBITDA multiple comparison. However, PFSW's largest competitor has been going down sharply:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43995;image)
This tells me the service fee business will have problems. On the eCost side, investors are extremely pessimist on the US consumer and are valuing these businesses at very low multiples, as we can see with SYX and MALL.
I've been holding these stocks due to the attractive valuation, but hey, the homebuilders and the banks also had low p/e's while they were going down, because, as we know, with some time the "e" turned negative.
I'm not sure if this will happen or not, but I decide to sell PFSW and this is an easy one, the company couldn't show a decent profit when the good times were rolling, what about now?
I just give up on PFSW, taking a small 4% or so loss. I don't want to hold the stock as it may go down to the 40 cents area, BFLY style.
updated chart look.......
P&G and PFSweb to Launch E-Commerce Learning Lab...
CINCINNATI, Jan. 15, 2010 /PRNewswire via COMTEX/ -- The Procter & Gamble Company (PG, Trade ) and e-commerce services leader PFSweb, Inc. (PFSW, Trade ) will begin piloting an online store this month. Named the eStore, the online shopping site will be owned and operated by PFSweb and exclusively feature P&G products to consumers in the U.S. The eStore is planned to launch this spring, following a pilot of the site with 5,000 consumers that will begin in the coming weeks.
"We are very excited about the eStore's potential to reach more consumers and create new online experiences and innovations that build our brands online," said Kirk Perry, P&G's Vice President, North America. "Ultimately, our goal in working with an experienced e-commerce business like PFSweb is to test concepts and programs that can be reapplied with all of our online retail partners in ways that exponentially grow consumer affinity for our brands and mutually increase sales for P&G and our retailer partners."
"As the growth in consumer web commerce continues to evolve, we are seeing a strong trend towards the broadening of consumer purchase interests into more product categories," said Mark Layton, PFSweb's CEO. "With each new product category comes the opportunity to develop and test marketing, selling and retention concepts. In working with P&G on our eStore, we're looking forward to uncovering new insights and innovations that deliver on the potential of e-commerce as a powerful sales channel for a wide range of consumer products."
P&G initiated the eStore concept and has been working its ideas for test concepts and programs with PFSweb. Product pricing, promotion, shelving and distribution will be at the sole discretion of PFSweb. P&G will work closely with PFSweb to identify new concepts, programs and marketing efforts to test via the eStore.
The eStore is another example of P&G's commitment to drive innovation to touch and improve the lives of more consumers in more parts of the world more completely. The eStore will test a number of concepts seeking to strengthen relationships with consumers and deliver e-commerce insights for categories such as beauty and grooming, health and well-being, and household care. These test-and-learn initiatives include subscription models and cross-selling capabilities, targeted iMedia and search ads, and the integration of social media with the online store.
According to PFSweb research, consumers expect the brand websites they frequent to be the best sources of information about the full range of products offered, including access to packaging, size and product variations that meet their needs.
"Consumers today also want to be 'in-the-know' about upcoming new products and advancements and be able to readily gain access to promotional offers and other new and exciting product information," said Layton. "We will power the eStore through the Demandware e-commerce platform with best-of-breed features and functionality. The flexibility of the Demandware platform in combination with the PFSweb retail services and world-class infrastructure will enable the eStore to be an ideal environment to test and develop new concepts to address the ever expanding consumer dynamics."
About Procter & Gamble
Four billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers(R), Tide(R), Ariel(R), Always(R), Whisper(R), Pantene(R), Mach3(R), Bounty(R), Dawn(R), Gain(R), Pringles(R), Charmin(R), Downy(R), Lenor(R), Iams(R), Crest(R), Oral-B(R), Duracell(R), Olay(R), Head & Shoulders(R), Wella(R), Gillette(R), Braun(R) and Fusion(R). The P&G community includes approximately 135,000 employees working in about 80 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
About PFSweb, Inc.
PFSweb develops and deploys comprehensive end-to-end eCommerce solutions for Fortune 1000, Global 2000 and brand name companies, including interactive marketing services, global fulfillment and logistics and high-touch customer care. Through a strategic relationship with Demandware, Inc. the company offers clients access to the only enterprise-class, on-demand e-commerce software platform. PFSweb serves a multitude of industries and company types, including such clients as LEGO, AAFES, Riverbed, InfoPrint Solutions Company (a joint venture company owned by Ricoh and International Business Machines), Hawker Beechcraft Corp., Roots Canada Ltd. and Xerox.
SOURCE Procter & Gamble
updated chart look.......
52wk Range: 0.70 - 2.68
Volume: 905,336
Avg Vol (3m): 17,045.3
Technicals
Record Price High
Percentage Gainer
Last Price Quote is:
58.08%above 13-day MA
67.75%above 50-day MA
RS Rating: 12
Fundamentals
Key Data:
Market Cap (M): $16.29
P/E Ratio: 8.75
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: Buy
chart...
updated chart look...
this stock is in need of some volume :-[