3SOF

Good morning !

I was studying stocks and found SYX, which is way undervalued, considering the recent turnaround in fundamentals. The stock was advancing firmly, but then the company said it would delay the Q2 results presentation so it fell 50% in just 2 weeks  :o. Now, with results out, the stock is coming back ...

Here's the full analysis I made with the trading plan at the end:

«1. Introduction

SYX has been a big mover, with big gaps up and down. I want to know what's up with this stock, why so much volatility? Also, on August 30 something relevant happened, because the average volume was consistently higher since that day.

SYX also made a partnership with 8X8, a current holding of the 3 Stocks on Fire Portfolio.

2. Profile

Systemax, Inc. (SYX) operates as a direct marketer of personal desktop computers, notebook computers, computer related products, and industrial products in North America and Europe.(complete profile here (http://finance.yahoo.com/q/pr?s=SYX))

3. Technical Analysis
3.1. All History Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29050;image)

SYX made its IPO around $18 in 1995 and rose to $50 in 1996. Then the share price collapsed to $1 :o. Made a long term base and recently bulls took control of it again.

3.2. Medium Term Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29051;image)

The stock was moribund until something happened in late August, 2006. I want to know which news were out on points 1, 2 and 3 on the chart.

Point 1) Systemax Reports First Quarter 2006 Results Net Income Increases to $17.6 Million from $2.6 Million (http://biz.yahoo.com/bw/060829/20060829005754.html?.v=1)
Point 2) Systemax Delays Reporting of Second Quarter Results (http://biz.yahoo.com/bw/061011/20061011005950.html?.v=1)
Point 3) Systemax Reports Second Quarter 2006 Results Net Income Increases to $.19 Vs $.04 Per Diluted Share (http://biz.yahoo.com/bw/061122/20061122005551.html?.v=1)

3.3. Short Term Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29056;image)

The short term trend is bullish.

4. Fundamental Analysis
4.1. Number of Shares Outstanding

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29060;image)

The share count remained stable since 1995, which is remarkable. This means the share price correctly reflects the company's value on an historical context. The current market cap is 36.98 million*$14.2 = $525 M.

4.2. Liquidity

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29059;image)

Working capital is now $203 M, with $52 M in cash, $148 M accounts receivable and $217.5 M in inventories. There's no long term debt, just $225 M of accounts payable.

The balance sheet is ok.

4.3. Revenues

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29061;image)

Revenues are up since 2002 and annualizing the first 6 months results I get $2.24 B in revenues for full fiscal 2006. Probably the number will be higher than this because there's some seasonality on Q4, so, say revenues will be $2.4 B in fiscal 2006, up 13.5% from 2005 levels.

The revenue multiple is $525 M/$2.4 B = 0.22. The industry average is 0.7.

4.4. Profits

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29062;image)

I'm expecting fiscal 06 EPS of at least $1.12. The earnings multiple is $14.2/$1.12 = 12.7. The industry average is 24.

5. General Overview

Technical analysis shows a bullish picture. SYX passed the share count test and the balance sheet test. There's double digit revenue growth and EPS is coming back after big restructuring in the 2000-2004 period. I estimate EPS of $1.12 for full fiscal 06 (without special items, which were positive), but this number can come in higher because I'm not taking into account the seasonal effects. It can be $1.20 or $1.30 a share ...

The revenue multiple should rise from 0.22 to 0.70, because the company is back on profits and there's strong revenue and EPS growth. This implies a 218% advance on the share price, from the current $14.2 to $45 a share.

I consider SYX an attractive investment.»

6. Trading Plan

Buy SYX around today's open, 6.66% of capital as always.

It's hard to buy a stock and immediately see it tank 6.7% as SYX did, I know. Perhaps, since this was no breakaway gap (a gap over a resistance level), I could have wait to buy when the gap filling process developed, and not right at the open. A lesson for the future on short term timing.

I guess the stock will close the gap, at $12.58. After that I expect the bullish trend to resume and the stock to push much, much higher than current levels.

Fundamentals say it should rise 200% to be correctly valued. This inefficiency will be corrected, but of course it will take time. I have time.

I'll continue holding SYX.

looks like Revenues are down past 2 quarters
582k 574l and 554k last quater.
take away the tax rate break on the 1st quarter and i don't see much growth going forward.
What am I missing?

Quote from: yukiii on November 28, 2006, 05:32:20 PM
looks like Revenues are down past 2 quarters
582k 574l and 554k last quarter.
take away the tax rate break on the 1st quarter and i don't see much growth going forward.
What am I missing?

Thanks for your question yukiii, I love questions :)

Let's see.

Quotelooks like Revenues are down past 2 quarters
582k 574l and 554k last quarter.

Correct. This is a seasonal effect, revenues always go down in Q1 and Q2 and then jump a lot in Q4, check this quarterly revenue graph:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=29182;image)

Quotetake away the tax rate break on the 1st quarter and i don't see much growth going forward.

Tax break? I don't think it was that significant:

«Income tax expense was $9.9 million in the first quarter of 2006 and $1.9 million in the year-ago quarter. The effective income tax rate for the first quarter of 2006 was 36.2%, compared to 42.5% in the year ago period. The effective income tax rate was lower in 2006 primarily as a result of income earned in the United Kingdom for which the tax provision has been offset by the reversal of a deferred tax valuation allowance previously recorded against the deferred tax asset for our United Kingdom carryforward losses. Changes in the mix of U.S. and non-U.S. earnings over the balance of the year and changes in the valuation of deferred tax assets could have a significant impact on the effective tax rate for the year.

As a result of the above, net income for the first quarter was $17.6 million, or $.51 per basic share and $.48 per diluted share, compared to $2.6 million, or $.08 per basic and $.07 per diluted share, in the first quarter of 2005.»

Ok, we had $0.48 EPS in Q1 and $0.19 in Q2. Q4 is always the strongest quarter, so we'll probably get at least another $0.67 for the remaining two quarters of the year. This means $1.34 EPS, the earnings multiple would be $12.95/$1.34 = 9.66 (the industry average is 23.3). Also, the revenue multiple at SYX is 0.22 and the industry average is 0.68.

Technically the stock almost closed the gap at $12.58, but the low of the day was $12.64. I don't know if the decline phase is over, but I remain confident that in 2 weeks or so SYX will be trading above $15.

I'll continue holding SYX.

Their big dip in Oct (when I owned it) was due to reporting delays.  Their business is very competitive.  Their numbers look good, but I am concerned that their problems go beyond reporting delays.

Quote from: snowcat on November 28, 2006, 09:10:17 PM
Their big dip in Oct (when I owned it) was due to reporting delays.  Their business is very competitive.  Their numbers look good, but I am concerned that their problems go beyond reporting delays.

Yes, I share that concern snowcat. But I put everything in historical context and I don't see any problem with the company, just not filing when they should. Let's see if they deliver on that promise of reporting Q3 in mid December, they're catching up.

QuoteTechnically the stock almost closed the gap at $12.58, but the low of the day was $12.64. I don't know if the decline phase is over, but I remain confident that in 2 weeks or so SYX will be trading above $15.

I said I remain confident that the stock will be trading above $15 in two weeks. That was on Monday, so I'll do nothing and wait until Monday, December the 11th to see if I was right or wrong.

Will continue holding SYX.

in at 12.90.  let's go to 15!  soxguy

I'm in @ $14.25 let's go to $18.55....please

hey td,20 would be even sweeter. we'll see.  soxguy

hehe, don't get emotional on this guys :)

SYX wasn't able to close the gap completely, which is even better ! There were too many people trying to buy the dip, so it couldn't reach $12.58. I like that.

Also, the stock is coming back on higher volume after touching the 50 day SMA support.

The company released a press release yesterday: TigerDirect.com Launches Huge Holiday Sweepstakes - Giving Shoppers a Chance to Win one of 20 Sony PlayStation(R) 3's, 20 Nintendo Wii's, and 20 Microsoft Zunes over the Next 20 Days (http://biz.yahoo.com/bw/061130/20061130005811.html?.v=1)

Don't you like their website, www.tigerdirect.com? I do. I think this profitable business with $2.24 B annual revenues should be worth more than $474 M, don't you?

I'll keep on holding SYX.

I'm in on SYX at 12.95.  Okay SYX.......you can go up now  ;D

I shouldn't have modified my original buy order at 12.80.  O well..........

Good luck all!

Thai

I'm glad you joined us on SYX thai626 :)

I was surprised to see it trading down on Friday, despite the weakness in the general market. Anyway, support at $12.68 held, and the stock still didn't close the gap at $12.58. Perhaps that's what its missing for a trip above the $14.72 high.

I'm not willing to let go of this stock that easily, since fundamentals are very attractive. I'll continue holding SYX whatever happens to the share price.

Finally, SYX closed the gap !

I said this on Friday's update:

QuoteI was surprised to see it trading down on Friday, despite the weakness in the general market. Anyway, support at $12.68 held, and the stock still didn't close the gap at $12.58. Perhaps that's what is missing for a trip above the $14.72 high.

I read this thread again and searched for more information on the stock, since I'm down 12.1% on this trade. Whenever I start losing more than 10% I start feeling I should take the loss and move on. But here I need to consider my short term timing was awful. The stock hasn't been deteriorating all that much, I was already down 8% the day after I recommended SYX.

I confirmed the fundamentals and the story, and everything seems fine. I guess that when SYX reports Q3 results it will jump if nothing new happens. People are discounting the reporting delays are due to some negative issue hidden below the carpet. But nobody knows for sure (just the corporate insiders, I guess).

In fact, now that I mention insiders, I see they were exercising options to buy shares around $15 last October, which is a positive ingredient.

Well, we've been waiting for the gap to be closed (since it wasn't a breakaway gap), it is closed now, let's expect the stock to rebound from current levels.

I'll continue holding SYX.

HI David,

I agree 100%.  I think the gap needed to be closed before we can make some money.  That's totally fine with me.   ;D

Money will be made and it'll be during this week.  Like my profile pics says.........show me the money!   :D

Thai

Quote from: thai626 on December 04, 2006, 07:05:54 PM
HI David,

I agree 100%.  I think the gap needed to be closed before we can make some money.  That's totally fine with me.   ;D

Money will be made and it'll be during this week.  Like my profile pics says.........show me the money!   :D

Thai

I'm glad we agree on SYX Thai :)

After closing the gap, the bids kicked in today and I let out a sigh of relief. It was technically important to get a bullish reaction from this critical short term point.

I'm starting to think SYX came down obviously to close the gap, but perhaps also because all retailers went down some after Black Friday. Now they seem to be coming back, and SYX will probably recover all the lost ground and more.

Losing exactly 10% on this trade now, due to bad short term timing. But the technicals are still constructive and fundamentals are supportive. So I won't use anything like an automatic stop loss, I moved away from that tactic. Any trader knows how to set a stop loss rule, but a wise trader knows when to take a loss.

The second quarter 10-Q file was published today at 13:23 ET. I read it, and it's clean, or at least they're cleaning it the best they can, introducing several financial internal controls.

I'm pretty confident that the two day's fall from $19 was groundless. This is also demonstrated by insiders activity exercising options to buy shares around $15 in October. It is a matter of time for SYX to push higher towards $19 and probably go beyond that level.

There's nothing to add to what I wrote yesterday on SYX. A small day in the market, both in terms of intraday price range and volume.

Nothing new on SYX, as I and the market continue to expect the company to deliver on the promise it made when it reported second quarter results, on November 22:

"The Company continues to work diligently to become current in its financial reporting and intends to release third quarter results before the end of December 2006."

Ok, it's before the end of December 2006, so they still have twenty days. The best thing that could happen would be if on the 3Q earnings release they said that 4Q results will be released on schedule. That would completely take out the cloud over this company's valuation.

I'll continue waiting and holding SYX.

Quote from: David Randolph on December 10, 2006, 05:45:17 PM
"The Company continues to work diligently to become current in its financial reporting and intends to release third quarter results before the end of December 2006."

You know, I'm starting to feel very apprehensive about SYX.  If they drop another bombshell about another financial release delay, that would just suck to the nth degree.  I can't afford to lose 50% in two trading days.   :-\

With that said, I still have faith that they will release by the end of December and that the numbers will blow us out.  I just wanted to let it out that I do feel some apprehensiveness as the end of December is coming near. 

Nothing for me to do now but hold and watch SYX very closely.

Signed,
Mr.  Apprehensive

Think that goes for the most of us. Wouldn't a stop be a good idea. I'm thinking at $ 12,50?

Would like to hear your view on that David.

Amarens

QuoteYou know, I'm starting to feel very apprehensive about SYX.  If they drop another bombshell about another financial release delay, that would just suck to the nth degree.  I can't afford to lose 50% in two trading days. :-\

Well Mr. Apprehensive, first of all, thank you for your post :)

Second, I think that if you read the initial analysis made on SYX, you'll see that the stock is now trading at a deep discount to its industry average. This means that probably, even if something comes out bad from the company, the fall won't be large, because that's priced in.

What's not priced in is the positive view that the company is coming back on track, both on its numbers and release schedule.

So I don't see a lot of risk, but the upside potential is quite attractive.

Quote from: Amarens on December 11, 2006, 11:07:21 AM
Think that goes for the most of us. Wouldn't a stop be a good idea. I'm thinking at $ 12,50?

Would like to hear your view on that David.

Amarens

Thanks for your suggestion Amarens :) I don't think a stop would be a good idea. If I had that $12.5 stop loss order before I would have sold at, say, $12.45, and the stock yesterday closed at $12.81.

I know the short term timing was bad, buying after that big gap up that wasn't a breakaway gap, but the stock has been fairly stable lately. Anytime, we can have a white marubozu that takes us back to the $14 - $15 level.

If the company reports Q3 by the end of December and says it will report Q4 on schedule, I have no doubts it will run to $20 plus. If they don't, if they say there will be more reporting delays, I see it going down another 10% from here or so ... I'll take my 20% loss then, I was wrong.

But at this moment I think of SYX this way: my short term entry point wasn't good, but everything I said on the long and medium term technicals and fundamentals still stands.

So I'll continue holding SYX.

Feeling a bit better on SYX today? Well, it was up while the general market was down.

I like the fundamentals and I like the chart, I'll continue holding SYX.

Let's cheer up everybody on SYX, the stock is coming back (http://mdteague.com/DancingSmile)

November retail sales came out stronger than expected so people started nibbling online retailers too.

Just look at the current design of www.tigerdirect.com, I think it shows a lot of enthusiasm, don't you?

There was a bullish breakout of a short term descending resistance, volume picked up, I think I'll make my money back on SYX, plus more, in a short period of time.

I have been waiting for an entry point for SYX.  I will buy SYX tomorrow.

Quote from: buddjas1 on December 13, 2006, 07:25:56 PM
I have been waiting for an entry point for SYX.  I will buy SYX tomorrow.

Great timing buddjas1 :)

SYX is coming back strongly, patience is paying. As I once said, I don't know if it was on this thread or not, everybody can set a mathematic stop loss rule, but an experienced trader knows when to take a loss. I didn't thought it was wise to stop the loss on SYX, since that loss occurred due to bad short term timing, not because of a change in the technical trend or the fundamentals.

Just look at the aggressiveness of www.tigertrading.com ... If I had not four or five computers at home I would buy another one for sure. Or maybe a webcam, I need one ... I'll check it out later.

I love this business. I'm glad the stock is up again, since I would like to hold it for a somewhat long period. For now I'll just say hold SYX.

SYX had a small consolidation day today. I see that they change the website's homepage (http://www.tigerdirect.com/) everyday, with new products and promotions.

If the company is able to get back on track on its reporting schedules I see this baby flying over $20 in no time, as the stock is undervalued and has great potential (as you can read on the initial analysis and the rest of this thread).

I'm happy holding SYX, I'll keep it that way.

http://biz.yahoo.com/bw/061218/20061218005586.html?.v=1

3Q 06 earnings release tommorrow after market close.

Are you holding through?

I think David will be holding through.  This was one of the things he was looking for before year end so I doubt that he will sell now unless he has some bad feelings about what might take place.

Quote from: thai626 on December 18, 2006, 10:40:37 AM
I think David will be holding through.  This was one of the things he was looking for before year end so I doubt that he will sell now unless he has some bad feelings about what might take place.

You're right thai626 :)

I don't care much about the actual earnings figures (the 3Q is seasonally weak), what I would like to see is if they say, on the press release or on the conference call, that they will file 4Q results on schedule. I think that would be a tremendous boost for the stock. If they don't, I believe the stock stays about the same, because the bearish scenario is already build into the valuation.

Apparently a lot of people dont want to hold through earnings.  After the announcement today about earnings, the stock seemed to freefall 10%.  Currently to 10ema is holding it up, sort of  :-[ 


----------------
Webcast Announcing 2006 Third Quarter Results

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--December 18, 2006--

  Systemax Inc. (NYSE:SYX), announced today that it has scheduled a conference
call for Wednesday, December 20 at 8:30 a.m. EST to discuss the company's
operating results for the third quarter of 2006.


  To participate in the call, interested parties can dial 866-314-4483
(domestic) and 617-213-8049 (international), access code: 68167949 to register
ten minutes before the call is scheduled to begin. This call is being webcast
by CCBN and can be accessed at Systemax's web site at www.systemax.com.


  If you are unable to listen to the live presentation, a telephone replay will
be available from December 20, 2006 at 10:30 am ET until the close of business
on December 27, 2006 and can be accessed by dialing 888-286-8010 (domestic) and
617-801-6888 (international) and entering access code: 93591488.


  The webcast is also being distributed over CCBN's Investor Distribution
Network to both institutional and individual investors. Individual investors
can listen to the call through CCBN's individual investor center at
www.fulldisclosure.com or by visiting any of the investor sites in CCBN's
Individual Investor Network. Institutional investors can access the call via
CCBN's password-protected event management site, StreetEvents
(www.streetevents.com).

   About Systemax Inc.


  Systemax Inc. (www.systemax.com) has developed an integrated system of
branded e-commerce web sites, direct mail catalogs, infomercials and
relationship marketers to sell PC hardware, related computer products and
industrial products in North America and Europe. Systemax is a Fortune 1000
company.

    CONTACT: Systemax Inc.
             Steven M. Goldschein, 516-608-7000
             [email protected]

    SOURCE: Systemax Inc.
Copyright Business Wire 2006


  (END) Dow Jones Newswires

  12-18-06 1057ET

10:57 121806

SYX is delivering on its promise of releasing 3Q results before the end of December. You can see on the following quote that I had been expecting this:

QuoteNothing new on SYX, as I and the market continue to expect the company to deliver on the promise it made when it reported second quarter results, on November 22:

"The Company continues to work diligently to become current in its financial reporting and intends to release third quarter results before the end of December 2006."

Ok, it's before the end of December 2006, so they still have twenty days. The best thing that could happen would be if on the 3Q earnings release they said that 4Q results will be released on schedule. That would completely take out the cloud over this company's valuation.

And the news yesterday was:

• Systemax to Announce Third Quarter 2006 Earnings (http://biz.yahoo.com/bw/061218/20061218005586.html?.v=1)
Business Wire (Mon 10:07am)

Results will be out today after the close. The market reaction told me people are afraid of the results, as the stock fell 8% yesterday, touching support again and recovering a bit of ground towards the close. Volume was above average, at 666,700 shares. There wasn't any technical damage to the chart, as the stock remains stuck in a trading range.

I'm not afraid of earnings at all. I expect them to be weak due to seasonal factors (the market has that expectation priced in). What matters most for me is the guidance for Q4, almost always the strongest for retailers. And really bullish would be if they promised to deliver Q4 and full year results on schedule.

All in all, I'm not willing to let go of this online retailer (http://www.tigerdirect.com/) trading at 1/5 of its annual revenues, without any dilution since 1995 and with EPS coming back up after big restructuring efforts over the 2000-2004 period. Not because I fear the earnings results.

Anyone that says "I'll never hold through earnings" will never be able to hold a stock for more than one quarter and will be cursed to be a short term trader for life, just watching quotes and never making any real big money out of it !

I won't fall into that common sense trap, I'll keep on holding SYX.

david,nice call on syx.  looks like this will be way up tommorrow. congrats.  soxguy

Systemax Reports Third Quarter 2006 Results; Net Income Increases to $.33 Vs. $.11 Per Diluted Share
Tuesday December 19, 5:27 pm ET
Third Quarter Highlights:
-- Quarterly sales: $575 million, up 18%, North America up 21%
-- Net income: Triples to $12.5 million
-- Operating income: Up 139%
-- Trailing 12 month operating income: $69.1 million vs. $22.2 million last year
-- Diluted earnings per share: Up threefold
-- Internet sales: Up 30%

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Systemax Inc. (NYSE:SYX - News), a leading distributor and manufacturer of PC hardware, related computer products and industrial products in North America and Europe, today announced results for the third quarter and nine months ended September 30, 2006.

ADVERTISEMENT
Net sales for the quarter increased 18% to $575.0 million compared to $488.5 million in the same quarter last year. North American sales increased 21% to $395.5 million compared to the same period a year ago. In Europe sales totaled $179.5 million, an increase of 11% over last year. Income from operations more than doubled to $19.2 million compared to $8.0 million in the third quarter last year. Net income increased 221% to $12.5 million or $.33 per diluted share compared to $3.9 million or $.11 per diluted share in the third quarter last year.

For the nine months ended September 30, 2006, net sales increased 11% to $1.697 billion from $1.533 billion during the same period last year. Income from operations more than tripled to $50.6 million compared to $16.3 million in the same period last year. Net income increased 362% to $37.1 million or $.99 per diluted share compared to $8.0 million or $.22 per diluted share a year-ago. Results for 2006 include an after tax gain of $4.3 million or $.11 per diluted share from the sale of a warehouse facility in the first quarter of 2006. Excluding this gain, net income would have been $32.8 million or $.87 per diluted share compared to $8.0 million or $.22 per diluted share in the same period last year.

Richard Leeds, Chairman and Chief Executive Officer said, "I am extremely pleased with our third quarter results, highlighted by our 18% sales increase. Our internet sales continued their growth pattern accounting for 34% of total sales. Internet sales are the most efficient way to serve our customers and have contributed to our increased operating profit without significant additional costs. It is significant to note that our trailing twelve-month income from operations more than tripled to $69.1 million compared to $22.2 million during a comparable period a year-ago (See GAAP reconciliation table)."

Gilbert Fiorentino, CEO of Tiger Direct noted, "The sales growth of North American computer products during the third quarter of 2006 was due in large part to the strength of our e-commerce efforts and also reflects the success of our strategy of expanding product offerings. European sales increased 11% compared to the year-ago quarter with increases being achieved in all our markets. Industrial products sales were also strong, increasing 15% during the quarter."

Steven Goldschein, Chief Financial Officer, noted that the Company's overall financial condition remains solid as evidenced by its strong cash position and short-term borrowings only in certain European operations. Mr. Goldschein noted, "Our efforts to improve the timeliness and accuracy of our financial reporting both by adding personnel and strengthening our systems and procedures are continuing. We expect to report our full year 2006 results on time at the end of March 2007."

This is supposed to be their seasonally weak Q? I can't wait to see a strong one! Oh, and they included the note David wanted to see about filing on time. Wish I'd bought more yesterday.

They TRIPLED net income???  That deserves a triple :o :o :o

Stock up another 10% in AH trading, very nice!

Yes, this was a blowout quarter for SYX, much better than even I expected. I always thought it was my bad short term timing, and not my being wrong, that at some point in time showed me a paper loss of 13% in this stock.

I'm in the green now, and with this kind of results, I expect this to end up being an outstanding trade for the 3 Stocks on Fire Portfolio.

Putting Q3 results in its historical context, in terms of EPS, we get the following graph:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=30544;image)

You can see this was the best 3rd quarter ever for the company.

SYX already made an EPS of $0.99 for the nine months so far in 2006, and the best is yet to come, as the 4th quarter is always the strongest. If they make, say, $0.41 in Q4 (entirely possible, perhaps conservative), we're looking at a full year 2006 EPS of $1.4. The stock is trading now, let me see, at $16, so the estimated earnings multiple is 11.4, with earnings tripling !

The industry SYX is inserted has an average earnings multiple of 23. SYX should be trading with an above average valuation, not below ... I can clearly see, based on fundamentals, that SYX will rise at least 100% (from $16), to accurately reflect the change in fundamentals.

Also, as BigSully mentioned, the company said it will report Q4 results on schedule, so there isn't any motive to keep it with this undervaluation. Not anymore.

Take one more look at www.tigerdirect.com, the driving force of all this. It says it all, doesn't it?

I'm glad SYX is performing well, as it should, of course I'll keep on holding the stock.

David,

You're the man...applauds to you on how you traded SYX, your strategy, holding it all the way through..and continuing to do so....that's pretty awesome.  :)

with a sure gap-up in the morning tomorrow...I believe it will not fall less than $14.72 (near term high from your chart above)...that is...even if it decides to take a dip. 

SYX on FIRE!!!!!!!!!   :o :o  ;D ;D

The chart says it all...........no need to explain any further   ;D ;D

Congrats to all shareholders of SYX........it's been a long wait but it was well worth it!

Thai

Good Call David !!! Applause !!

In at 12.95, I'm following the plan, whatever it is...

Moment of truth time for SYX (1 day chart).  Looking for a descending triangle breakout!!  But if it doesn't, that fine as well.  I'll be holding regardless!

Maybe it's lunch time! 

Wow.....that was brutal!!!   :o :'(

It's not going to shake me out of my shares...........not now anyways.  When you've found a gem, you've just got to hang on.

I see that you're making an effort to invest with a somewhat longer time frame thai626, I think that's good for you. In the old days you probably would have been shaken out of SYX by it's sudden break of the $17 level, right?

SYX made a big breakaway gap today. Will it come back down to close that gap or will it continue higher?

I think I shouldn't make that question, because, what's the scientific, rational base to answer it? Do you have one? I don't think you do, neither do I. Because short term moves, although they seem highly predictable, with time (perhaps a lot of time, unfortunately), you find out that ... they aren't predictable at all, they're a gamble :-\

Fundamentally, as I wrote on yesterday's analysis, the best is yet to come on SYX, since the 4th quarter is always the strongest, for most retailers and of course SYX is no exception. When I want to buy a new computer or a new television, especially with the US Dollar this low, I know I'll buy it at www.tigerdirect.com. It's just too competitive, and the company shows rising profit margins, even with the discounts you see on their website.

I see EPS of $1.4 for full fiscal 2006, which means SYX is trading at less than 12 times earnings. It should be at least double that, considering the annual revenue and EPS growth. I rationally expect this stock to be up 100% over the next 3 - 6 months, I couldn't rationally sell it here, could I?

I'll continue holding SYX.

People can't resist a fast buck, even when the stock is so attractive as SYX is. As we've been discussing, fast bucks may buy you some goods or short term pleasures, but you'll lose them all back to the markets, plus more.

SYX has everything in its favor:

- Technical analysis says the trend is bullish;
- Fundamental analysis says the stock is at least 50% undervalued;
- They have a sound and profitable long term business model

I almost can't resist browsing www.tigerdirect.com to buy some stuff that I don't really need. SYX is a fast growing company with estimated $2.4 B in sales for 2006 and EPS of $1.4 and just $563 M market cap.

I believe this trade is like taking candy from a baby. I wish there are more out there like this, I need to find them !

Quote from: David Randolph on December 21, 2006, 06:10:58 PM
I believe this trade is like taking candy from a baby.

You could not be more right.  SYX reappeared on the IBD 100 list this weekend at #4.  Our shares are beginning to look very cheap.  Great call David.  Do you have a target in mind?  I think $24-$25 is probable before the next 10Q.

 

To bad I was not visiting 3SOF the last couple of months. I had bought some SYX after the 2nd drop in October at 10.04...then bought more at around 11 and 12. I would have perhaps held my shares.

At the time I think I was looking for a quick profit, but I did realize it seemed to be a good company. But when you see a large drop (black candlestick) on the chart and then you see it followed by another...it kind of put some fear in the back of my head. So I ended up selling due to these concerns.

I have yet to read any helpful information about after hours strategies. After hours trading seems to be making and breaking many stocks these days. I am sure if a book comes out written by a professional trader on this subject it would sell off the chain. Has anyone seen any helpful info online?

QuoteYou could not be more right.  SYX reappeared on the IBD 100 list this weekend at #4.  Our shares are beginning to look very cheap.  Great call David.  Do you have a target in mind?  I think $24-$25 is probable before the next 10Q.

Hi buddjas1, you know I don't like to think in terms of price targets, I prefer to study the developments on a daily basis and keep adjusting my projections as more information becomes available.

But I can say that with the current public information SYX should be trading at $32 to be fairly valued, in my opinion. Because then it would be valued at 23 times projected 2006 full year earnings, which is its industry average.

On Friday the stock recovered all it lost on Thursday. I don't think this latest gap, being a breakaway gap, will be closed soon. SYX is currently the 3 Stocks on Fire Portfolio (http://www.3stocksonfire.org/3stocksonfire.php)'s biggest winner, and I tend to keep my winners.

I'll keep on holding SYX.

QuoteTo bad I was not visiting 3SOF the last couple of months. I had bought some SYX after the 2nd drop in October at 10.04...then bought more at around 11 and 12. I would have perhaps held my shares.

Yes, I think you would have held SYX HANDBALLJIM :) You see, I had been losing 13% on SYX and I held with full confidence that it would rally, because my trade was both technically and fundamentally based.

QuoteAt the time I think I was looking for a quick profit, but I did realize it seemed to be a good company. But when you see a large drop (black candlestick) on the chart and then you see it followed by another...it kind of put some fear in the back of my head. So I ended up selling due to these concerns.

Yes, the mistake was looking for a quick profit in the first place. If you're looking for a quick profit, you can't have much profound reasons to buy the stock, just short term motives. In the end you're thrown out of it with a small profit, or many times, a small loss (if you're disciplined enough to take the loss as quickly as you take the profit).

Over the long run you will never grow rich using a short term strategy. Let me invite you to read Reminiscences' chapter 5, it explains pretty well the difference between betting on small fluctuations and capturing the big swings, that is, the vital difference between gambling and speculating:

Reminiscences of a Stock Operator - Chapter 5 (http://www.3stocksonfire.org/trading/index.php?topic=7882.msg79516#msg79516)

QuoteI have yet to read any helpful information about after hours strategies. After hours trading seems to be making and breaking many stocks these days. I am sure if a book comes out written by a professional trader on this subject it would sell off the chain. Has anyone seen any helpful info online?

No, I haven't seen it, and I think it would be useless (but I agree it would sell well(http://mdteague.com/FlaminDevil)). That is another form of short term trading that would inevitably fail, even more given it is an illiquid time to trade. Taking SYX as an example, do you think it slowly climbed in AH, from $14 to $16? No, it went up immediately as the news was released and with very few shares traded.

Stick around, I feel you want to improve your trading style, and of course, results :)

SYX opened with a small gap up, tried to close it, but demand was too strong. I don't know if this latest gap will be closed or not, and frankly, I couldn't care less.

SYX is worth at least $32 with the current fundamental picture, of course I'll continue holding, even though I already have a 22% profit on the stock.

www.tigerdirect.com is getting traction, growing sales 30.7% from the year ago levels:

«Net sales for the nine months ended September 30, 2006 increased 10.7% to $1.7 billion compared to $1.5 billion in the year-ago period. Net sales in the first nine months of 2006 included approximately $583.4 million of internet-related sales, a 30.7% increase from $446.5 million of internet-related sales in the prior year's first nine months.»

That is helping to increase the gross profit margin:

«The gross profit margin was 15.3% in the current period, compared to 14.5% in the year-ago period. The increase in the gross profit margin resulted from a favorable change in product mix, increased internet sales, increased consideration from vendors and reduced warehouse costs for staff and supplies.»

Selling, general and administrative expenses are going down on a relative basis:

«Selling, general and administrative expenses as a percentage of net sales was 12.3% in the current nine month period compared to 13.2% in the year-ago period.»

Strong profits:

«Net income for the first nine months was $37.1 million, or $1.06 per basic share and $.99 per diluted share, compared to $8.0 million, or $.23 per basic and $.22 per diluted share, in the first nine months of 2005.»

I expect $1.40 EPS for fiscal 2006. So the current earnings multiple is 12. SYX's industry average is 23.

The best is yet to come on SYX.

Has 3SOF ever considered putting more than 6.66% of capital into low risk, high reward stocks like SYX?  I noticed that 3SOF will break the rule on the low end for pink sheet stocks; how about on the high end.  In other words, why treat all stocks the same?  After all, more SYX is better than 25% cash.

Quote from: buddjas1 on December 28, 2006, 11:34:09 AM
Has 3SOF ever considered putting more than 6.66% of capital into low risk, high reward stocks like SYX?  I noticed that 3SOF will break the rule on the low end for pink sheet stocks; how about on the high end.  In other words, why treat all stocks the same?  After all, more SYX is better than 25% cash.

Yes, we've considered that in the past, but never done it because of money management rules. Money management rules say that to be full invested 3 Stocks needs 15 different holdings. This reduces the overall risk of the portfolio. Imagine I invested 20 or 30% of capital in just one holding and that single stock collapsed due to some overnight news? The stock specific risk would be too high. And remember, as a stock goes up its weighting in the overall portfolio goes up with it. For example, SYX is now 7.9% of the portfolio.

But you're right, money invested in SYX is theoretically better than just sitting in cash, and certainly better than the crap I've been buying lately ???

Coming back to SYX, fundamentals are awesome, the stock just needs to cross above $19.25 for the world to see it. And I'm pretty positive it will do that ... as positive as I can be on a stock.

I'll continue holding SYX for the foreseeable future ... just a quick check at www.tigerdirect.com ... extremely aggressive and competitive as always, I love it :-*

SYX is probably the most legitimate holding of the Stocks on Fire Portfolio, both from a technical and fundamental standpoint, no surprise it is the biggest gainer.

I was curious to see how they could continue as aggressive as they've been selling their products, and they just don't seem to stop: www.tigerdirect.com

I want to make some long term estimates on SYX, considering its recent revenue growth, gross and net profit margins, but for now let me just keep on saying that SYX is worth at least $32 a share with the current public information as you can read on the rest of this thread.

SYX is the best and continues to prove it everyday. And I'm not talking about the share price, I'm talking that today, when I entered www.tigerdirect.com, there were new technical developments that will lead to increasing sales.

Watch how now you have your shopping cart and other appealing info on the right part of the website.

These guys are working everyday to increase shareholder value. They sure deserve my money.

Unfortunately I don't have much time for today's updates (it's my brother's birthday), so let me just say ... that SYX is a long term holding of the Stocks on Fire Portfolio.

This is just the beginning.  There are still 2.8 million shares short out there. 

Quote from: buddjas1 on January 04, 2007, 12:34:39 PM
This is just the beginning.  There are still 2.8 million shares short out there. 

Thanks for adding even more fuel to SYX's bullish case buddjas1 :)

We had more positive news today:

11:16am 01/04/07 TigerDirect Expands Payment Options with SECURE-eBill(TM) (http://www.marketwatch.com/news/story/tigerdirect-expands-payment-options-secure-ebilltm/story.aspx?guid=%7B64808F98%2D6297%2D4D20%2DB849%2D27F8648D0F2A%7D&sid=148197&symb=) - BusinessWire

And a marvelous bullish breakout of the all important $19.25 resistance level. The sky is clear, current fundamentals justify at least $32 price per share, I'll continue holding SYX.

Hello,

I was wondering if anyone has a good idea of good entry price for SYX. I am late to the party, but it has had a large run-up in the past four days. I am more of a fundamentalist than a technician and it looks due for a pullback, the 10-day average is currently around $17.50, so it does look extended short term. Any suggestions of a decent entry price would be appreciated?

Thanks

Quote from: eggman11 on January 05, 2007, 10:27:28 AM
Hello,

I was wondering if anyone has a good idea of good entry price for SYX. I am late to the party, but it has had a large run-up in the past four days. I am more of a fundamentalist than a technician and it looks due for a pullback, the 10-day average is currently around $17.50, so it does look extended short term. Any suggestions of a decent entry price would be appreciated?

Thanks

When you wrote this post I was about to write: "What's wrong with the current  market price? It looks like a great buy to me!"

But then I thought indeed it could retrace a bit ... it ended at $19. The fact is I don't have a clue about the short term. It can go down to the 10 days moving average, currently at $17.53 or it can run to new highs above $20 on Monday.

The only thing I know is the fundamental value of the stock is $30 plus and the short/medium and long term technical trend is bullish. Sure, perhaps you can catch it at $17.50. But you also risk watching it run to $30 without you on board.

I have nothing better to do but to buy and hold SYX. Good luck :)

Thanks David for your reply. After I posted it dipped sharply and was able to pick up some shares @ $18.42. It was due for a pullback and it looked it all happened in one day. dipped as low as $18.10, but came back and closed at $19. I think we will move to new highs next week.

Quote from: eggman11 on January 07, 2007, 09:15:49 PM
Thanks David for your reply. After I posted it dipped sharply and was able to pick up some shares @ $18.42. It was due for a pullback and it looked it all happened in one day. dipped as low as $18.10, but came back and closed at $19. I think we will move to new highs next week.

I'm glad you joined me on SYX eggman11, it sure looks like a great long term opportunity. www.tigerdirect.com is rocking and rolling and SYX is selling for 0.28 times revenues !!!

I don't see any analyst covering the stock. SYX is an hidden gem. When Q4 results are released I see it pumping to $30.

Online retailers will continue to grow, and grow, and grow for many years to come. It just makes sense to me and a growing consumer base across the world. I can compare products faster and get cheaper prices, because online retailing eliminates many costs of selling products.

I don't have to say I'll keep on holding SYX, you know it's my darling stock.

I tried to review the entire thread to see if this has been discussed and I couldn't find anything, but if this is a repeat, I apologize in advance.

http://www.stocklemon.com/10_12_06.html

If you don't have time to read it, the biggest worry would be that their pricing is rebate driven, and it is apparently a pretty big adventure to get the rebate according to many complaints.  The point from SL is that SYX owns the company that provides the rebates.  They also point out that this is a pretty big industry problem, and that some big boys are actually moving away from the rebate game. 

I bought this in the mid 12's, the #'s can't be argued, and Cramer gave it a Bull tonight as well, but I am glad I know some of the potnetial landmines I had not seen before.  I will probably bail in the low 20's, hoping of course it gets there, not necessarily because of the potential landmines, its just that my piggish ways have cost me in the past.

QuoteI tried to review the entire thread to see if this has been discussed and I couldn't find anything, but if this is a repeat, I apologize in advance.

http://www.stocklemon.com/10_12_06.html

If you don't have time to read it, the biggest worry would be that their pricing is rebate driven, and it is apparently a pretty big adventure to get the rebate according to many complaints.  The point from SL is that SYX owns the company that provides the rebates.  They also point out that this is a pretty big industry problem, and that some big boys are actually moving away from the rebate game.

I have time to scrutinize the entire article, but please take into account that the article was written in October 12, 2006, and a lot has changed since then.

From Q1 (the quarter StockLemon refers to), Cash levels increased by $21 M and Inventories decreased by $38 M.

I don't see anything strange in SYX owning the company that provides the rebates. Why shouldn't they? As for consumer complaints, they exist in every corporation in the USA, and if you Google every one of them for consumer complaints, you'll probably find thousands for each. Put Wall Mart at the top of the list (in fact, I did find 571,000 hits on a Google search for "wall mart consumer complaints"), and I don't have to say Wall Mart is one of the largest companies in the world with $198 B in market cap.

StockLemon also came up with those consumer reports on IIG, that's his modus operandi.

As for the reporting delays, the company is getting back on track and it promised to deliver 4Q results on schedule. Nothing serious came out of the internal investigation and those auditor's concerns were removed.

That StockLemon's article is talking about the past, those concerns are gone.

What he doesn't talk is: SYX is trading at 0.28 times revenues and 13 times 2006 earnings. That coupled with fantastic growth.

QuoteI bought this in the mid 12's, the #'s can't be argued, and Cramer gave it a Bull tonight as well, but I am glad I know some of the potential landmines I had not seen before.  I will probably bail in the low 20's, hoping of course it gets there, not necessarily because of the potential landmines, its just that my piggish ways have cost me in the past.

Yes, thanks for sharing the article, I wasn't aware of it. Call me a pig, but I'm not willing to sell this stock, not at $20, $30 or perhaps even $40 if fundamental trends persist.

I knew the date of the article, and I am not a big follower of SL, however, if you ask me if I think fundamentally owning the company who does the rebates is a conflict of interest, I would say yes, no matter who is doing it. 

They have the right to do it, all things being equal I would like an independent entity handling my rebate that has nothing to gain or lose from honoring it or denying it.

Quote from: oicpecnoc on January 09, 2007, 09:23:13 PM
I knew the date of the article, and I am not a big follower of SL, however, if you ask me if I think fundamentally owning the company who does the rebates is a conflict of interest, I would say yes, no matter who is doing it. 

They have the right to do it, all things being equal I would like an independent entity handling my rebate that has nothing to gain or lose from honoring it or denying it.

I don't understand this very well oicpecnoc. The mail in rebate is a promotion they give on the products they sell (I initially thought it had something to do with transportation costs, or a money guarantee). As I see it, it wouldn't make any sense if it were another company doing it for Systemax.

It works like this: for example, www.tigerdirect.com has many Gateway computers in inventory and wants to sell them quickly. So they give a "mail in rebate", which means the costumer can send them back information and documents, and they will send a check to the consumer with the rebate (meaning a promotion), say, $100.

They have very though restrictions on this "mail in rebate", so I understand why there are so many complaints, probably from people that didn't read the Terms & Conditions of the Mail in Rebate.

Check this example:

Click here to download rebate information for:
$50 (USD) Mail In Rebate on the Gateway GT4010 AMD Athlon 64 3500+ 2.2GHz Reburbished Desktop PC - G153-GT4010 (http://static.tigerdirect.com/Rebates/G153-GT4010_US_Jan31.pdf)

But SYX is much more than www.tigerdirect.com, it manufactures computers like Gateway or Dell, for example, check their website:

http://www.systemax.com/

Also, www.tigerdirect.com is responsible for just 34% of total sales of Systemax (of course, its share is growing, and that explains why the company is getting more and more profitable)

Technically SYX went over $20 today, but closed at $19.80, up 4.16% on the day. I'll keep on holding.

I probably don't understand it either, I just conceptually like the idea of a neutral party processing rebates.  If that is unusual, I think Stocklemon is dubious for criticizing what everyone else does. 

Was today's spike caused by the news that options will be trading for the first time on SYX beginning on Jan. 11, 2006?  Would this affect the stock during the short term?  Just curious, I don't do options, never will!

Thanks

Mbaugh

Quote from: oicpecnoc on January 10, 2007, 07:46:40 PM
I probably don't understand it either, I just conceptually like the idea of a neutral party processing rebates.  If that is unusual, I think Stocklemon is dubious for criticizing what everyone else does. 

The thing is on www.tigerdirect.com a "mail in rebate" means "promotion" or "discount". I would find it strange if it were another company making promotions or discounts on the products SYX is selling.

Quote from: mbaugh on January 10, 2007, 08:08:15 PM
Was today's spike caused by the news that options will be trading for the first time on SYX beginning on Jan. 11, 2006?  Would this affect the stock during the short term?  Just curious, I don't do options, never will!

Thanks

Mbaugh

Well, maybe some traders think that because of having options a company is more credible or liquid, but I don't think that has any major effect on SYX's share price, not even over the short term.

The thing is SYX is massively undervalued, given its revenue and earnings multiples and the growth it has been showing over the latest few quarters. Why is this? Because the company delayed results due to an internal investigation on internal controls, but that investigation just put in more internal control procedures, but concluded there was nothing wrong within the company.

When hey released Q2 and Q3 numbers (just in the end of November and December, 2006), they were awesome! The stock is responding to fundamental changes, but fundamentals improved a lot more than the current share price implies.

My take is SYX shares need to rise to $32 to be fairly valued by the market with the current public information, not considering its long term potential, which I believe is huge because www.tigerdirect.com sales are growing more than 30% a year, and it is a very profitable sales channel.

SYX closed at $20 a share today. Even though it has been up so much over the short term, I still think the current valuation is an insult.

We're at $20, but I already see $30 on my screen.

I have a question about SYX. I always thought tigerdirect.com was a separate company from Systemax, with tiger just acting as a online distributor for SYX. Am I incorrect in that belief? Some of the posts act as if they are one and the same.

I have been aware of numerous complaints in the past years about tigerdirect.com and many other various online electronics sellers. some of the complaints I have heard/read involve rebates, but there were many others such as claiming the item is in stock, billing your credit card and then giving the runaround, sometimes for months as to shipping dates. Others were shipping opened, returned, or refurbished as new and having a lousy return polcy, etc, etc.

Recently though, tigerdirect seems to have a much better reputation. I have many friends who have purchased from them with no problems and a City administrator told me they buy all their computer and products from them now with no problems (I don't know if they are Systemax computers though).

When dealing with an online electronics dealer, here are some suggestions;

1)Make sure the dealer is a manufacturer authorized dealer or the manufacturer rebates and warranties will NOT be honored by the manufacturer.

2) Make sure what you are buying is actually new and whether it is actually in stock.

3) Make sure your credit card will not be billed until product is shipped and that you can easily track the shipment.

4) try calling customer service beforehand, just to see how easily you can connect to them and how responsive they are.

5) Find out what the return policy is.

I intend to build my own next  computer and will probably try buying some, if not most, or all the components from tigerdirect, if they can beat newegg.com's (has excellent reputation) prices by very much.

For pre-built computers, Systemax has good pricing and uses quality components,  but I can't vouch for the quality of the build, tech support, proper burn in, testing, configuring etc.

Conerning to whole rebate issue.

SYX has their own rebate program, many retailers have their own rebate program. Circuit City one of the largest eletronic store chains in the US. Uses the same rebate strategy. On they're deeply discounted prices they offer 2 rebates. One is a manufacturers rebate and one is a circuit city rebate. I have bought things from Circuit City using their rebates. I did have a problem with them once. Comp USA uses the 2 rebate program as well and I think Best Buy does it too (I have never used it there). Using specific store rebates is a widely used practice in retailing, Its just a way to lure customers in with outrageously low prices and get them in the store or on your website.

QuoteI have a question about SYX. I always thought tigerdirect.com was a separate company from Systemax, with tiger just acting as a online distributor for SYX. Am I incorrect in that belief? Some of the posts act as if they are one and the same.

tigerdirect.com is owned by Systemax (SYX):

«About TigerDirect, Inc.

TigerDirect, Inc., a subsidiary of Systemax Inc. (NYSE:SYX), is part of an integrated system of branded e-commerce web sites, direct mail catalogs, and relationship marketing companies selling PC hardware, related computer products and industrial products to consumers and businesses in North America and Europe. TigerDirect can be found on the Web at http://www.TigerDirect.com.»

QuoteI intend to build my own next  computer and will probably try buying some, if not most, or all the components from tigerdirect, if they can beat newegg.com's (has excellent reputation) prices by very much.

For pre-built computers, Systemax has good pricing and uses quality components,  but I can't vouch for the quality of the build, tech support, proper burn in, testing, configuring etc.

I see you're a computer hardware expert and you're probably going to add to SYX's revenues BigSully1, cool :)

Quote from: eggman11 on January 12, 2007, 03:18:09 PM
Conerning to whole rebate issue.

SYX has their own rebate program, many retailers have their own rebate program. Circuit City one of the largest eletronic store chains in the US. Uses the same rebate strategy. On they're deeply discounted prices they offer 2 rebates. One is a manufacturers rebate and one is a circuit city rebate. I have bought things from Circuit City using their rebates. I did have a problem with them once. Comp USA uses the 2 rebate program as well and I think Best Buy does it too (I have never used it there). Using specific store rebates is a widely used practice in retailing, Its just a way to lure customers in with outrageously low prices and get them in the store or on your website.

Thanks for the clarification on rebates eggman11, initially I thought they meant that people paid the transportation of the product but then got a rebate for that value. Instead those rebates are like a delayed promotion.

I've never seen that "mail in rebate" marketing and selling tool here in Europe, but we're always learning from the US, so probably it is just a matter of time.

Anyway, it looks like a common practice, so let's move on.

«Results of Operations

Nine Months Ended September 30, 2006 Compared to Nine Months Ended September 30, 2005

Net sales for the nine months ended September 30, 2006 increased 10.7% to $1.7 billion compared to $1.5 billion in the year-ago period. Net sales in the first nine months of 2006 included approximately $583.4 million of internet-related sales, a 30.7% increase from $446.5 million of internet-related sales in the prior year's first nine months.»

So, www.tigerdirect.com now accounts for 34.4% of SYX's total sales, and tigerdirect.com has been growing about 30% a year.

That has been positively affecting profitability:

«Gross profit, which consists of net sales less product cost, shipping, assembly and certain distribution center costs, was $259.6 million compared to $221.6 million in the year-ago nine months, an increase of $38.0 million. The gross profit margin was 15.3% in the current period, compared to 14.5% in the year-ago period. The increase in the gross profit margin resulted from a favorable change in product mix, increased internet sales, increased consideration from vendors and reduced warehouse costs for staff and supplies.»

Technically, slowly, but surely, SIX continues to advance and is now above $20. I'll continue holding SYX.

Gap closed from today's gap up.  This thing is moving up but taking its time.  I may have to put in a stop limit at some point to protect my gains.  Good luck all.

Quote from: thai626 on January 16, 2007, 02:07:53 PM
Gap closed from today's gap up.  This thing is moving up but taking its time.  I may have to put in a stop limit at some point to protect my gains.  Good luck all.

Good luck to you too thai626 :)

The company released the following news at 14:18 ET:

• That Fish Place/That Pet Place Experiences Immediate Efficiencies With ''Go Live'' of ProfitCenter Software Solution (http://biz.yahoo.com/bw/070116/20070116006198.html?.v=1)
Business Wire (Tue 2:18pm)

I believe this news is awesome, because it is the first sale of ProfitCenter Software Inc., a wholly owned subsidiary of SYX.

From SYX's latest 10-Q:

«We also participate in the emerging market for on-demand, web-based software applications through the marketing of our PCS Profitability Suite™ of hosted software, which we began during 2004, and in which we have not yet recognized any revenues and have incurred considerable losses to date.»

So, SYX is now a computer maker (Systemax brand), a technology products online retailer (www.tigerdirect.com) and a business software company (ProfitCenter Software).

For as long as the stock is below $30 I don't have much work to do on this thread, because I'm not willing to change my bullish stance on the stock below that level (unless fundamental information changes a lot).

Here is Stocklemon's latest report on SYX;

http://www.stocklemon.com/01_16_07.html

It does appear that there are still numerous complaints about tigerdirect and OnRebate. Most are about rebates, but there are also others.

This is a becoming worrisome as Stocklemon is not letting this issue go. I think I will look for an exit, or at least put a stop on.

Stock lemon only paints the picture they want you to see. Their are rumors that Stock Lemon is not so trust worthy and has other motives, like manipulating the stock price for their own benefit.

Here are other popular retailing review websites they forgot to mention:

http://www.bizrate.com/ratings_guide/cust_reviews__mid--23939.html

Customer Certified 92% rating over 250,000 reviews (Higher Rating than Dell)

http://www.pricegrabber.com/rating_getreview.php/r=500

4.54 overall rating out of 5

As I mentioned in my earlier post their is a lot of retailers that offer and process rebates on the products they sell- i.e. Circuit City and on their filing they do not mention anything about rebates as well. I believe it falls under the Cost of goods sold in the financial report

I sold at 20.40 today, just in case there is any Stocklemon effect emboldening shorts and prodding profit takers.  It was pretty close to when I was planning on selling anyway.  I might buy it back if it dips, but I won't chase it if I lose out.  The run up and the possible effects of the article combined made me skittish or perhaps a chicken.  With stocks, it seems to me what people percieve is more important than the reality, so even if SL is wrong, it won't matter if people believe it. 

KRY is an example today.  Cramer created a perception that it's risky to do business with a lunatic. as if the guy was sane when he recommended it in the first place. Maybe he is right.  Maybe he is wrong.  It really doesn't matter because the sheep sold and the people afraid of the sheep selling sold based on their perception that the positives of the company could not overcome the fear in the market based on perception.   

Its pretty clear recently that the reality of the cash cow SYX has become is flattening any negative perception.  Lets see if it continues, but sometimes it doesn't hurt to take a time out.

You guys are giving me a lot of work here on SYX, which is great :)

As for StockLemon's article, which I read with great attention, I have the following to show:

- Wall Mart Sucks (http://www.google.pt/search?hl=pt-PT&q=wall+mart+sucks&btnG=Pesquisar&meta=)

- Microsoft Sucks (http://www.google.pt/search?hl=pt-PT&q=microsoft+sucks&btnG=Pesquisar&meta=)

- NewEgg Sucks! (http://www.google.pt/search?hl=pt-PT&q=newegg+sucks&btnG=Pesquisar&meta=)

You can do this for every listed company! (the bigger the company, the more results). The fact is, the company is not working for consumers, it is working for shareholders. If they're able to sometimes rob consumers (in a legal way) for shareholders benefit, shareholders love it ! (IIG is a good example)

QuoteOne thing for sure – disappointed stockholders will not be able to demand rebates on their share purchases at these lofty levels.

Lofty levels? Since when a company trading at 30% of one year's revenues can be considered lofty? Even more so when that company is a computer maker, an online retailer and a software company?

www.tigerdirect.com is still just 34% of SYX's revenues, and StockLemon confuses tigerdirect.com with the whole Systemax company.

QuoteWith stocks, it seems to me what people perceive is more important than the reality, so even if SL is wrong, it won't matter if people believe it.

Many people probably believed SL when he wrote his first article on SYX (October 12, 2006), when the stock closed at $11.8. That didn't prevent the following 70% rise. Many people may believe SL's article this time. But that won't prevent another huge bull run on the stock.

QuoteIts pretty clear recently that the reality of the cash cow SYX has become is flattening any negative perception.  Lets see if it continues, but sometimes it doesn't hurt to take a time out.

I respect your decision.

I'll continue holding SYX.

I also sold mine also as i do consider the stock risky now. When I bought, I didn't do my DD and didn't even know that Tiger direct was owned by SYX. I know better now. What's more, I won't be buying anything from Tigerdirect.

SYX is not the only stock I've sold in the last few days, I've lightened up many and have begun to look for good short prospects, just in case.

All the online electronics dealers have some complaints, but tigerdirect clearly has an over abundance of them.

Again, you have to keep in mind that if the dealer (this goes for any of them) , is not a factory authorized dealer, the manufacturer will not honor rebates or warranties. Most manufacturers do this to protect their brick and mortar dealers.

Any other rebates/warranties offered by the reseller/e-tailer should be honored by that reseller/e-tailer. Whether they do so or not, maybe a different story.

Of course StockLemon is biased in their opinion, but I also think it wise to open an ear to what they are saying. They probably have some clout and determination to pressure authorities to take some action. Very happy with my gain in SYX. THNX David.

I sold out today, for over a 50% percent gain on some shares, as well.  Nice call David.

I did not like the way SYX was trading.  There seemed to be one seller selling a ton of shares after lunch EST for the past three days.  And, now I know why (or at least think I do):

http://biz.yahoo.com/ap/070117/systemax_cfo.html?.v=1

The CFO has resigned.

Not sure what this means long term, but I am glad I sold today.

QuoteI sold out today, for over a 50% percent gain on some shares, as well.  Nice call David.

Thanks :)

QuoteThe CFO has resigned.

Resigned? He retired after 10 years on the job, that's quite different:

• Systemax CFO Retires, Replacement Announced (http://biz.yahoo.com/bw/070117/20070117006032.html?.v=1)
Business Wire (Wed 5:03pm)

QuoteNot sure what this means long term, but I am glad I sold today.

I'm glad you're glad, I'll continue holding SYX.

"Resigned? He retired after 10 years on the job, that's quite different:"

"Resigned" and "retired" mean the same thing to me.  I meant nothing negative by my choice of words.

My only point was that SYX was trading strangely the last three days, with huge blocks showing at the ask, and perhaps it has something to do with the CFO leaving. 

In any event, you're probably correct to continue to hold.  SYX has a huge upside.    I will probably end up buying some shares back, later.  I am just a little skittish this week, for some reason.

Quote"Resigned" and "retired" mean the same thing to me.  I meant nothing negative by my choice of words.

Ok, it's just that you scared me with that "The CFO has resigned" ;D

QuoteMy only point was that SYX was trading strangely the last three days, with huge blocks showing at the ask, and perhaps it has something to do with the CFO leaving.

I hope so, because if that's the case, the news is out now: sell the bad rumor, buy the news !

Anyway, look at SYX chart again. It may retest the $19.25 support level (prior resistance), without making any damage to the bull trend. But my guess is it will rally after tomorrow's lower open. Time will tell, and this is all short term thinking, and it doesn't change the fact that SYX is trading at 0.3 times revenues and 14 times 2006 earnings.

Retired and Resigned are to different things. When you retire from a company, that usually means that a person just does not want to work anymore and enjoy the rest of his years.

When you resign from a position it usually means that you will be seeking employment elsewhere. Which means that you rather work somewhere else.

In this case the CFO stated that he is retiring, but staying on part time for a year to help the transition. If there was any issues, he wouldn't want to stick around another year. This whole thing is just a case of a 61 year old man who made a lot of money of the years and wants to play more golf and enjoy the good life.

Tommorrow, we will probably open lower and move back into the green by the end of day with a positive close.

Hmm....looks like a lot of people are overreacting?? ??? ???

I don't quite see what the hurry is to sell!  Nothing negative reported nor did they have a big volume spike.  The stocklemon website sounds shady so I'm not a believer in what they claim.  It sounds like they are in it for the own good.......IMO, they got caught shorting the stock way back when.

I will take profit but will likely sell 1/2 shares when it breaks a support level or when something negative is reported.

Anyways, only time will tell if the sell was a good decision or not short term.  SYX still appears bullish to me........atleast for now!

Thai

Hmm....looks like a lot of people are overreacting??

Quote

I was in the mid 12's.  I'm simply taking profits.  Knowing when to sell is an imperfect science, and it evolves with most traders I think.  I'm not particularly good at it, but I have underreacted too many times and seen profits slip away, or in some cases taken losses.  The classic grabbing defeat from the jaws of victory.  Sometimes you just have to take a win for your "psyche", and this is one of those times for me anyway.  How I actually feel about it however will be in direct proportion to the direction the stock takes without me, unlike some who can simply "be glad" they sold before seeing the results.  I am constantly either patting myself on the back, or kicking myself in the butt, but I do neither until I see how it works out. 

I think saying "you're glad you sold", before seeing how it works out is psuedo bashing, albeit unintentionally.  It was/is a fabulous pick, and I would never want to give the impression that I can see the sky falling, when there is no evidence of it, particularly for the fine folks still holding.  Afterall, clouds often clear away before a day of sunshine, just as they sometimes appear before a storm.  Time ultimately provides the answer.

Stocklemon has a following, regardless of what anybody thinks about them.   Lots of stocks have tanked after they panned them.  Some stocks they have panned have not tanked.  The fact that they have been wrong before is entirely not the point.  It seems the higher the stock has run up, the more skittish retail traders become in reaction to their articles IMHO.  But retail investors often get skittish after run up without the Lemon, so what do I know.

Yea ... huge overreaction!  Down 10%?!?

Just bought some more; I am way overinvested in this one.

Quote from: danman3459 on January 18, 2007, 09:44:43 AM
Yea ... huge overreaction!  Down 10%?!?

Just bought some more; I am way overinvested in this one.

I think that's the way to go danman3459, I would be adding on this dip too.

Whoa!   :-\  I got stomped out on half my position.

Time to pick up more when the time is right!

Congrats to everyone who took a profit yesterday. 


Hmm......That's weird my stop limit order never got executed.  I guess I'm still fully invested in this one.   ???

I just added a little bit to my position as well. I can't believe the over reaction to the CFO announcement. I admit I expected it to be down, but not by this much. He is still staying with the company part time for the next year.

Quote from: eggman11 on January 18, 2007, 10:32:44 AM
I just added a little bit to my position as well. I can't believe the over reaction to the CFO announcement. I admit I expected it to be down, but not by this much. He is still staying with the company part time for the next year.

It wasn't just the CFO retiring. It is also some lag effect of stockLemon's article yesterday. And Cramer said very loud today on CNBC: "Sell all technology, except CSCO, AAPL, GOOG, MSFT and ... (I don't remember the other)". And Bernanke said the US budjet deficit may imperil the economy.

Four absolutely wrong motives to sell, but watch how the Nasdaq 100 is down 1.31%. I expect bears to get punished, and punished seriously, today, as the market rebounds towards the close.

"And Cramer said very loud today on CNBC: "Sell all technology, except CSCO, AAPL, GOOG, MSFT and ... (I don't remember the other)"."

I believe HP (Hewlett Packard) was the other, although I may not remember correctly. 

800,000 SYX sold already this morning.  There seems to be a pretty solid base at 18-18.25.

I missed the original entry on this one so I was happy to be able to grab some shares at 18.25. Now let's see a strong rebound! ;D

Bought some SYX @ 19.04

Bought some more too!
Cramer is an *!#!
It's really nice to hear how far you guys dig!
I'd never even heard of Stock Lemon! LOL!

Best
GMan

SYX chart... on watch for possible entry ;)

SYX tried to recover its losses after the morning slump, but the general market didn't let it. It closed a small gap that was opened between $17.7 and $17.72.

The technical trend, given by the 50 and 200 days moving average, remains bullish. I believe fundamentals are as attractive as they can be, the most attractive I've found in all stocks I've been covering (I guess, more than 100 already).

Moreover, SYX, especially www.tigerdirect.com, is a business that I would love to own myself. I wouldn't sell my business because someone writes something bad about it, or because a guy on TV says "sell tech". I would hold it because it is a business of the present and future, growing sales 30% a year and it is very profitable.

I'll continue holding SYX.

Firstly: sorry, this was too funny not to post here.

Secondly: There is a website www.thedailywtf.com that monthly has a section that points out funny web/computer errors.  Well, this month includes a SYX wtf:

(http://img.thedailywtf.com/images/200701/pup2/TigerDirectWTF.png)

HAHA.

If they could just sell a couple of those ....

Yeah, really funny danman3459 :) It's a pity not even Gates or Buffet could do the mistake of buying such a product ;D

Nice bounce at SYX on Friday. People that sold on Wednesday did well, but only if they were able to buy back the stock on the dip. Or else I guess they'll miss the ride, because the best is yet to come on SYX. At least that's my believe, given my perception of the fundamental position of the company.

On Friday the company filed a form 8-K with the SEC with more details about the CFO change, particularly specific information about the new CFO background:

«Lawrence P. Reinhold was appointed Executive Vice President and Chief Financial Officer, the principal financial officer of the Company, effective January 17, 2007. Mr. Reinhold, age 47, was a business, finance and accounting consultant in 2006. Previously he was Executive Vice President and Chief Financial Officer of Greatbatch, Inc., a publicly traded (NYSE:GB) developer and manufacturer of components used in implantable medical devices (principally pacemakers, defibrillators and neurostimulators) from 2002 through 2005; Executive Vice President and Chief Financial Officer of Critical Path, Inc. a publicly traded communications software company in 2001; and a Managing Partner of PricewaterhouseCooopers LLP with responsibility for its Technology, Information, Communications, Media and Entertainment industry practice in the Midwestern United States from 1998 until 2000 (and held other positions at that firm from 1982 until 2000). He received his BS in Business Administration (in 1982) and his MBA (in 1987) from San Diego State University.»

GB is a $630 M market cap company.

Moreover, the former CFO will stay with the company for an additional 12 months:

«Steven Goldschein retired effective January 17, 2007 as the Company's Senior Vice President and Chief Financial Officer, the principal financial officer of the Company. He has agreed to remain with the Company on a part-time basis for a one-year period. The employment agreement with Mr. Goldschein was amended effective January 17, 2007 to reflect Mr. Goldschein's role as a part time employee for 12 months (not to exceed 30 hours per week) ...»

So, nobody is running away and the new man at the helm has a notable background.

The fears about the CFO leaving look like complete nonsense. The stock will probably rise to $20 plus this week.

I'll keep holding SYX.

SYX opened with a little gap up and closed that gap as the session went on. Nothing new to add on the fundamental or technical front, I'll keep holding SYX on the Main Portfolio.

SYX is still hovering around $19. Take a look at www.tigerdirect.com again, but keep in mind it still represents just 34% of the company's sales.

I'll keep holding SYX.

I'll definitely hold SYX through earnings, as I expect full year 2006 EPS of $1.4 (as you can read on the rest of this thread).

I just hope they report on schedule as promised. It would also be great if they provide guidance for fiscal 2007, that can really put the stock on fire on a push to $30.

I just noticed that on Tuesday the stock was downgraded, from "strong buy" to "buy", by Matrix Research:

• Systemax Inc. downgraded by Matrix Research (http://finance.yahoo.com/q/ud?s=SYX)
Briefing.com (Tue, Jan 23)

Still it was up 2.27% yesterday, and that goes to show its relative strength.

Nothing new on SYX yesterday. Let's just check the business again: www.tigerdirect.com.

I'll keep holding.

I hope you were able to get back into SYX (if you have taken profits previously) or if you were waiting for a chance to get in on a dip, because SYX is roaring back up.

I maintain that there isn't much thinking to do about SYX for as long as the stock is trading below $30, because its fundamental value, with the current public information, is superior to $30.

On a micro technical level, SYX will probably close a gap opened at $20.15 on Monday or Tuesday, it will be "important" for short term technical players to see it close above that "fill the gap" number for them to get confidence to buy the stock.

Until SYX closes above $20.15 the current market action can be perceived just as a "fill the gap" rebound. If it closes above $20.15 it will be obvious to everybody that the sky is clear for the stock to make a new high above $21.

But that's just short term technical information, if you read this thread and focus on the fundamentals, as I've been doing, you won't have problems with buying and holding SYX, both a value and growth play.

SYX is really the best, isn't it? Look at that white candle and volume surge as it pushes to new highs above $21 :-*

QuoteOn a micro technical level, SYX will probably close a gap opened at $20.15 on Monday or Tuesday, it will be "important" for short term technical players to see it close above that "fill the gap" number for them to get confidence to buy the stock.

It did close above $20.15 on Monday (in fact, the close was $20.81, up 4.47%) and everybody is competing to get into the stock, which I consider a bargain at current levels.

QuoteI maintain that there isn't much thinking to do about SYX for as long as the stock is trading below $30, because its fundamental value, with the current public information, is superior to $30.

Just a quick peek at www.tigerdirect.com. Looking good.

I have a 45% profit on SYX and I'll continue holding.

New 52 week high for SYX today!  :)


I read somewhere that SYX is mentioned on IBD lately, someone with more info?

Quote from: Se7en on January 30, 2007, 10:28:12 AM
New 52 week high for SYX today!  :)

I read somewhere that SYX is mentioned on IBD lately, someone with more info?

Didn't see anything, and I don't think that IBD ranking is all that much relevant.

Yes, SYX crossing the $21 "resistance" (well, you know, bull trends have no resistance) level to a new seven year high !

As I've been saying, there's not much thinking to do on SYX for as long as it is trading below $30. I have a 50% profit on the stock and I'll keep holding.

Another advance day for SYX. Notice there are no analyst estimates for SYX on Yahoo Finance, and the market has been telling us that my full year 2006 EPS estimate of $1.4 is indeed plausible. They already made $1 EPS in the 9 months though September, so $1.4 is entirely possible, since Q4 is historically the strongest for the company.

If they do release EPS of $1.4, everybody will see that SYX, even at this seven year high prices, is trading at 15 times earnings and growing earnings 351% from 2005 levels.

Let's check www.tigerdirect.com today ... nice :)

I'll continue holding SYX. 

SYX released the following news yesterday:

• SearchHelp Teams with Systemax to Provide Preloaded Parental Control Software to New Computer Buyers (http://biz.yahoo.com/bw/070201/20070201005986.html?.v=1)
Business Wire (Thu 12:49pm)

I guess this comes to show that Systemax isn't just www.tigerdirect.com (as StockLemon has been writing), it is also a computer maker, check this: http://www.systemaxpc.com/

Yesterday the stock rose 4%. I have a 59% profit on SYX and I'll continue holding !

Apparently SYX is now IBD's Nr1 in their new top 100 list, this can give it some extra attention next week, if already needed!  :)

Quote from: Se7en on February 03, 2007, 09:06:39 PM
Apparently SYX is now IBD's Nr1 in their new top 100 list, this can give it some extra attention next week, if already needed!  :)

Number 1? Cool 8)

It's number 1 in the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php) too.

As I figure SYX, there's nothing to think about while the stock is trading below $30. It's too cheap (as you can read on the rest of this thread - I think it is an interesting thread, as I've been losing 15% or so in this stock). Now I have a 62% profit on SYX and I'll keep on holding!

Let's just check www.tigerdirect.com front window today ... selling non stop, 24/7, to the whole world from a single website.

Looks like IBD is indeed influential  >:D

David, what's the plan when SYX gets over $30? The way it is going, it may get there in no time.  ::)

This might be the first stock I have ever held (with a strong hand) to have 100% return, thanks a lot David!

QuoteLooks like IBD is indeed influential >:D

Indeed, it looks so, everybody pays attention to it. I probably should do that too.

Hmm, it looks like I need to be a subscriber of Investor's Business Daily to access the IBD-100 list (http://www.investors.com/?tn=top). I want to subscribe this, but forgot my wallet in the car, and my wife took the car :P

I'll do it when she gets back home.

QuoteDavid, what's the plan when SYX gets over $30? The way it is going, it may get there in no time.  ::)

Good question realcoolhead, I'm glad you're making it. The answer needs to take into account estimates for the future, respecting recent fundamental trends and valuation.

I need two fundamental tables for this, the historical revenue and historical EPS table:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=32921;image)

Revenues have been growing 9% a year since 2002. I expect this growth to accelerate to 13.5% this year (according to my 2006 total revenue estimate of $2.4 B) due to the positive influence of www.tigerdirect.com.

I also expect gross margin to improve a bit, but I'm not sure by how much. What I think doesn't make sense on SYX is the very low price to sales ratio of just 0.37. I can't compare it with the industry average because SYX is involved in several industries, but in general the Price to Sales Ratio should be more like 1, given that SYX is a growing and profitable company.

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=32922;image)

The future for SYX depends more on net profit margin expansion than on revenue growth. Revenues are already quite high, at about $2.4 B for 2006. What the company needs now is to make those margins a bit more fat.

I'm expecting net profit margin of 2.05% for 2006, but there's still plenty of room to improve this. Again, www.tigerdirect.com is helping the company expand its net profit margin, but I also wonder if the company is not improving net profit margin on their computer making business (http://www.systemaxpc.com/). I wonder if they're not taking just a bit of market share from Dell, which has been losing market share as everybody knows.

Going to the basis of this investment, the main reason is www.tigerdirect.com and its historical annual revenue growth rate of 30%. As this continues, the online retailer will be the biggest part of the company, hence making it more and more profitable.

I see $30 as a sure thing, and I still consider the stock undervalued. If SYX can be on the Main (http://www.3stocksonfire.org/3stocksonfire.php) beyond $30 depends on the net profit margin achievements the company can make on a quarter by quarter basis, because I don't want to see tigerdirect.com profits eroded by other divisions within the company.

I'll keep holding SYX as a long term investment and will review this position everyday with incoming information.

QuoteThis might be the first stock I have ever held (with a strong hand) to have 100% return, thanks a lot David!

You're welcome realcoolhead, keep that head cool and those hands strong :)

Applause !!!

Just passed 100% up on SYX...in at 12.85.

Great Call David and many Thanks !!

Quote from: JKN on February 06, 2007, 01:30:46 PM
Applause !!!

Just passed 100% up on SYX...in at 12.85.

Great Call David and many Thanks !!

You're welcome JKN, just doing my job. I wouldn't think too much of my buying point when holding stocks, that shouldn't be an input on a hold/sell decision process. The market doesn't care about your buying price, and to maintain objectivity, you shouldn't care about it too.

SYX is up 8 days in a row, and the trend, that good old friend of ours, is without a doubt bullish.

Fundamentally I still see it as cheap, and probably I wouldn't sell even if it were expensive, given that fundamental trends persist. The next 50% advance of SYX shares will mean another double for JKN.

I'll keep holding SYX.

SYX is up 9 days in a row, as institutions pile in shares. Of course, it won't continue rising at this torrid pace, there will be corrections along the way, but the technical trend is bullish and fundamental trends are very positive as you can read on the rest of this thread.

I've been doing well just holding this great stock. I'll keep letting the profits run.

SYX couldn't make 10 advancing days in a row, but I think we can excuse the stock :D

There were no news out ... let me check www.tigerdirect.com. Selling aggressively , as always.

SYX is now 11.2% of the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php) (due to its own merit), and I'll keep on holding the stock.

David,

Hope you have time to reply one more time. I'm going skiing tomorrow and won't have internet acces for a week. I want to put a stop at SYX, would be a bummer if something like ZQK happens. I find the stoplevel hard to determine (still learning). Was thinking at $ 23,20 b/c that is just below like what looks like a small gap to me.  ???

Would be very happy to hear your thoughts  :-*

Thanks,
Amarens

Sold my SYX for a 43% gain, need to have some funds to get in PFSW! :)
Great pick David, applaud!

Now that you put your photo of course I'll answer your question right away Amarens :-* (just kidding, I hope my wife doesn't see this post ;D)

That's such a hard question, you know?

Generally I'm not a fan of trailing stops or even stops in general. But I understand your need to go on vacations with a relaxed mind. That gap you mention closes at $23.26.

I don't think the stock will go that low next week, in fact I think there's more chance of it going beyond $30.

I would go without a stop, but if you want put your stop at $22.9, I'm pretty sure the stock won't touch it next week.

I wish you nice holidays :)

Tnx!!! Also for the compliment ;) ;)

Tried forever to upload one never worked, know now they were to big. Think it's fun to see the faces of everybody.

My mind will be more relaxed with a stop. Will follow your advice. Is pretty close to my idea anyway.

Will be back in a week.
Amarens

Hey David, I decided it was time for a new monitor so I went searching the web for a great deal.  Guess what?  I found my deal at tigerdirect.com!  I wound up buying a wireless keyboard and mouse to go with it.  And trust me, I did not go to tigerdirect first, I searched some of the pricing engines and they wound up taking me to tigerdirect.  Count another $400 in revenue for SYX this quarter!   ;D 

Here is my new monitor if anyone is looking for something new too, what I really like is the video that tigerdirect uploaded to showcase the product.  Scroll down near the middle of the page on this link to see the video, great marketing by the company! ;)
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=2549197&CatId=1410&CMP=ILC-FPM02

Forgot to mention that the sale on this monitor ends Monday if anyone really wanted one... :P

I dont know if this has been mentioned or not yet, but I got my paper version of the Investors Business Daily delivered today and noticed that SYX was number 1 on the IBD 100!   ;D

Niiiice call again David, you picked this way before it was number one on IBD, but it has been steadily rising since then as I look through my back issues.  :D

The top 10 FYI in order are:

SYX, HMIN, KNOT, CPA, HRT , ICE, GES, MR, WFR, CNS

Quote from: trexkerry on February 12, 2007, 12:27:08 AM
Hey David, I decided it was time for a new monitor so I went searching the web for a great deal.  Guess what?  I found my deal at tigerdirect.com!  I wound up buying a wireless keyboard and mouse to go with it.  And trust me, I did not go to tigerdirect first, I searched some of the pricing engines and they wound up taking me to tigerdirect.  Count another $400 in revenue for SYX this quarter!   ;D 

Here is my new monitor if anyone is looking for something new too, what I really like is the video that tigerdirect uploaded to showcase the product.  Scroll down near the middle of the page on this link to see the video, great marketing by the company! ;)
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=2549197&CatId=1410&CMP=ILC-FPM02

The prices have sure come way down on the LCD panels, while the quality has gone way up.  Here is the next monitor on my wishlist for my tradestation.

http://www.digitaltigers.com/zenview-arenaelite.shtml

I'm going to settle for this one though

http://www.digitaltigers.com/zenview-powertrio-ultrahd.shtml

or this one

http://www.digitaltigers.com/zenview-powertrio24x.shtml

Even the smaller is very hardware hungry, at least 2x dual (quad) high quality GPU's with one dual supporting  the higher resolution center screen and the other powering both side panels. The seven monitor system would take a server board and multiple GPU's. I'm in the process of ordering parts for new pc, but everything is coming from Newegg. Prices about the same as TigerD, sometimes less, and have had excellent experiences with newegg. Please keep us informed how your experience goes with TD.

QuoteHere is my new monitor if anyone is looking for something new too, what I really like is the video that tigerdirect uploaded to showcase the product.  Scroll down near the middle of the page on this link to see the video, great marketing by the company! ;)
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=2549197&CatId=1410&CMP=ILC-FPM02

Yes, I think they're very efficient at www.tigerdirect.com. Doing a great work for the benefit of SYX shareholders. You did your part too, buying those $400 in product ;D (by the way, nice monitor)

Yes Tokyopua, that was mentioned, I guess it helped the stock going from about $23 to $27.

Yes BigSully1, www.newegg.com is probably the biggest competitor to www.tigerdirect.com, but I think Tiger will beat the competition.

Any space for www.ecost.com? Well, they're expected to sell $140 M in 2007.

Anyway, this is SYX's thread. We all know about the success Tiger has been achieving, but I think the upside surprise in 2007 might come from Systemax computers, which products you can check here: http://www.systemaxpc.com/

You see, the company sold something like $2.4 B in 2006, and the market cap, despite all the recent huge rise, is still under $1 B. If the other parts of the business, not just TigerDirect, but also the computer part and the industrial products division start to make some profit, oh yes, SYX could easily go to a revenue multiple of 1.

That would mean $2.4 B market cap which translates into $68 a share.

So don't you dare taking profits on SYX, just sit tight and keep holding.

Wasn't SYX overbought? It was. Did it rise 6% to a new high? It did.

As Livermore puts it, and I don't need to open the book to write this:

«It was never my thinking, but my sitting tight that made me the most money»

There isn't much to think about, just keep on holding SYX.

It's still hard to believe SYX is now a $28 stock, isn't it?

There was a small correction yesterday. The bull case remains intact.

I'll continue holding SYX, this company might trade at a Price to Sales Ratio of 1 (why not?), and that means more than $60 a share.

My biggest winner since I joined!
Up over 50%
Thanks Again David!

Quote from: guitarman on February 14, 2007, 01:39:20 PM
My biggest winner since I joined!
Up over 50%
Thanks Again David!

I'm glad you're making good money guitarman :)

Every time I look at www.tigerdirect.com I fell the power of a great business. It makes so much more sense to me to buy electronic products from an online retailer. That's because one can make a lot more comparisons with less effort and time. One can quickly compare specifications and prices on several products and choose exactly what he wants.

Moreover, the website has a global reach, and it costs a lot less than opening a store in every town around the planet.

SYX is now a $976 M company selling about $2.4 B in 2006. I'll keep holding this great investment.

SYX has been consolidating the recent gains on lower volume. Nothing new on the fundamental front either.

Something tells me SYX will beat my estimate of $1.40 EPS for the full year of 2006 (that means $0.40 EPS for the fourth quarter, since the company already earned $1 per share over the first nine months of the year).

Although SYX is now a $1 B market cap company, there are no analysts covering the stock.

www.tigerdirect.com represented 34% of sales in Q3, but since that is an online retailer, probably the 4th quarter was much stronger than the average of the previous three. That being said, www.tigerdirect.com is also the most profitable division of SYX.

We'll just have to wait for the results to find out, in the meantime, pay no attention to short term developments, focus on the fundamentals and keep on holding.

I am glad to see 100% on this. AWESOME!!!! Great pick and I have enjoyed the ride and will follow your guidance.

I did have one question...if memory serves me correctly you had said you were waiting for the $30 price level. I will have to read the thread to find out why but now that we are there...at least at the time of this post, what are your thoughts of the price expectation going forward? I still see no reason to sell but the $30 level sticks out in my mind.  Next time I will have to read before positing... 8)

ciao!

QuoteI am glad to see 100% on this. AWESOME!!!! Great pick and I have enjoyed the ride and will follow your guidance.

Thanks Lance :)

QuoteI did have one question...if memory serves me correctly you had said you were waiting for the $30 price level. I will have to read the thread to find out why but now that we are there...at least at the time of this post, what are your thoughts of the price expectation going forward? I still see no reason to sell but the $30 level sticks out in my mind.

Yes, since SYX was a $14 stock that I kept saying $30 was a very realistic target, it was more or less a sure thing to me. I kept writing that because of the following factor:

- I saw 2006 EPS of at least $1.4 and I thought SYX, given its growth rate, should be warranted an earnings multiple above 20.

But, I guess those $1.4 were a too conservative estimate, because the company already made $1 over the first 9 months of the year and the 4th quarter is seasonally the strongest (since Systemax is both an online retailer and a computer maker).

Q4 2006 can be a blowout quarter, the market is pointing to that. If SYX starts being more and more profitable, there's no reason for it to trade at such a low price to sales ratio (currently at 0.44), it could trade at a revenue multiple of 1. That would mean a price per share of $68.

I guess we'll just have to wait for the annual report to find out. The company has until March the 15th to publish annual earnings.

I'll continue holding SYX. 

Someday this would have to happen, because unfortunately no stock goes up everyday. A 6.2% one day fall is a significant event, but if we put it into context, not such a big deal. I would have sold SYX long ago had I paid too much attention to a 6% correction.

Let's check www.tigerdirect.com. Looking good, as always.

I'll keep holding SYX, I believe Q4 was a blowout quarter.

Nice shakeout at SYX yesterday. Left a bullish reversal candlestick on the chart, with volume above average. In a couple of weeks time SYX will be at new highs, with most of the people that sold yesterday buying at a higher price.

I'll continue holding SYX with strong hands.

No news out from SYX for the past couple of weeks. Let's check www.tigerdirect.com today. I'm expecting perhaps a little more than $1.4 EPS for 2006, but now I'm starting to get interested about how 2007 is going.

Since this is the full year report we'll probably only get earnings in mid March. I'll continue holding SYX.

SYX is still digesting recent gains. I believe it is just a matter of time before a new bull run, as www.tigerdirect.com continues to increase the company's profitability.

Any idea what's going on? Down 6%!

Got out at 26,78. Sorry too much profit to let it run away. ::) ::) ::) B.t.w. was my safety stop loss which was executed.

Will wait for an hour to see how things settle after the Chinese fall and Greenspan's words. Wow what a loss...

Amarens

Quote from: danman3459 on February 27, 2007, 09:43:39 AM
Any idea what's going on? Down 6%!

The stock was a big gainer over the last couple of months so people took profits on it to compensate for losses elsewhere. Anyway, my take is value will take it higher again by the end of the session (watch how it is trading above the open).

I'll hold SYX with strong hands (it's a pity Amarens got out, but can't blame her, great profit :))

If there's a consumption lead recession in the US later this year as I expect (http://www.3stocksonfire.org/trading/index.php?topic=9050.msg90421#msg90421), SYX will start going down.

It was a pity that I didn't had the nerve to sell at my initial $30 objective. Anyway, at yesterday's close SYX showed an 82% return, great by all means.

updated chart, will be interesting how deep will SYX fall in the next trading weeks

SYX is going back up now and there's a conference call today at 5pm.
spiritgate

syx getting clobbered after hours

Does anybody know what happened?

Amarens

GREAT TO SHORT !!!!! ;D

Here's Cramer's take: http://www.thestreet.com/_googlen/newsanalysis/winners/10345378.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
It's still a good buy in my opinion.
spiritgate

does anyone think that SYX will run up before its $1.00 dividend date which is payable to holders of April 2 and payable on April 19?  I believe the dividend price has already been factored into the share price and that we will see alot of buying pressure until April 2.  Any comments on this would be greatly appreciated.

thanks
mbaugh

After I took an 83% profit in SYX at $26.2 the stock had a bad 4th quarter and collapsed to the long term 200 days moving average, to a low of $16.06.

But now the stock is coming back strongly, because Q1 2007 numbers were a lot better than expected, since the company earned $0.37 EPS for the quarter against the seasonally stronger Q4 when it made just $0.23.

I know that Q2 is weaker from a seasonal standpoint, but I already missed a nice trade on MCZ thinking "I'll better wait for the weak quarter to buy". The point is everybody knows about seasonality, it's always priced in (unless we're talking about a micro cap company).

Everything that I wrote about SYX on this thread is still in place. For example, the company's market cap is $757 M, and over the last four quarters the company had revenues of $2.45 B. Therefore the Price to Sales Ratio is just 0.3.

www.tigerdirect.com continues to grow, as internet sales grew 18% from the year ago level (even though I expected 25%, this is still a nice number).

What the company needs now is margin expansion, because net profit margin in Q1 2007, for example, was just 1.92%. Out of $676 M in sales, just $13 M in net income. I think it will be possible to increase this margin, especially as competition goes bankrupt (that seems to be happening with PFSW and its www.ecost.com unit).

I know SYX quite well, it is a pleasure to have it back to the Main Portfolio.

The Trading Plan is:

Buy SYX, 6.66% of capital as always.

Hey, am I lucky, never got out of SYX  ;D ;D was too late to sell and decided it would go up again. How is that for a loooooong term view  ;)

Sometimes it's better to laugh about it, and since I keep a very diversified portfolio it does not heart too much. But all losses heart, let's be clear about that.

Amarens

wow 50% of the float is short

SYX    $ 20.94
Systemax Inc.   -0.09
Shares Short   5,494,100
Days to Cover (Short Ratio)   8.9
Short % of Float   49.54 %
Shares Short - Prior   4,659,200
Short % Increase / Decrease   17.92 %

Quote from: yukiii on June 28, 2007, 12:48:46 PM
wow 50% of the float is short

SYX    $ 20.94
Systemax Inc.   -0.09
Shares Short   5,494,100
Days to Cover (Short Ratio)   8.9
Short % of Float   49.54 %
Shares Short - Prior   4,659,200
Short % Increase / Decrease   17.92 %

Is Stocklemon still on their case?

David, nice comeback in SYX, applause. ;)

fyi:

SYX: Short Interest UP 17.9% to 5.5M in Jun 2007
Thursday , June 21, 2007 16:37ET

According to new short interest data from NYSE, short interest for Systemax Inc (NYSE: SYX) INCREASED 17.9% to 5,494,083 shares for the month ended mid-June, 2007.

SYMBOL    MAY            JUNE          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
SYX   4,659,157       5,494,083        +834,926    +17.92%          12

Based on SYX's 20-day average daily share volume of 484,080, it would require approximately 12 day(s) of buying to cover this short interest.

&

BUYINS.NET: NCI, SYX, BPA, ALLT, PPBL, VAPH Have Been On BUYINS.NET Naked Short List For 13 Consecutive Trading Days
Tuesday , June 26, 2007 09:38ET
......
Systemax Inc. (NYSE: SYX) and its subsidiaries operate as a direct marketer of brand name and private label products. It operates in three segments: Technology Products, Industrial Products, and Hosted Software. The Technology Products segment sells computers, computer supplies, and consumer electronics in North America and Europe. Its products include personal computers (PCs), servers, notebook computers, laser printer toner and ink jet printer cartridges, recordable disks, magnetic tape cartridges, hard disks, CD-ROM and digital versatile disc (DVD) drives, printers, scanners, memory upgrades, data communication and networking equipment, monitors, digital cameras, plasma and liquid crystal display TVs, MP3 and DVD players, PDA's, and packaged software. This segment also assembles its PCs and sells under the trademarks Systemax and Ultra, as well as markets and sells computers manufactured by other companies. The Industrial Products segment sells various material handling equipment, storage equipment, and consumable industrial items in North America. Its products include wire and metal shelving, bins, and lockers; hand carts, forklifts, and hand trucks; ladders, furniture, small office machines, and related supplies; and first aid items, safety items, protective clothing, and OSHA compliance items. The Hosted Software segment markets PCS ProfitCenter Software, a Web-based application, which delivers on-demand service over the Internet. Its product helps companies automate and manage the customer life-cycle across multiple sales channels. The company's customers include large, mid-sized, and small businesses; educational and government entities; and individual consumers. It markets its products through multiple channels, utilizing relationship marketers, e-commerce Web sites, mailed catalogues, and retail outlet stores. Systemax was founded in 1995 and is headquartered in Port Washington, New York. With 35.98 million shares outstanding and 4.66 million shares declared short as of May 2007, the failure to deliver in shares of SYX has not been resolved and a buy-in is imminent.

Thanks La-Onda, I expect SYX to breakout above $22 and that will make the shorts buy to cover on the way up.

I went to see if StockLemon (now Citron Research) has been on to SYX's back lately, but no, the latest article on Systemax is dated January 17, 2007. Hi guess he was convinced by the company's reply to his "on rebate" concerns. I'll look into it more deeply for the next updates.

But he's really on to HSOA and now HOKU. I'm going to read HOKU's story, I'm sure it is interesting, since that stock has been up so damn much lately (and I missed it  :'().

I need to derive my valuation model for SYX. I'm sure it will be easy to justify a much higher share price. Just a bit of a margin expansion and that would change the company's valuation completely. As for the downside, imagining SYX would report a quarterly loss or whatever, I don't think there's a big downside because of the very low price to sales ratio.

I'll do this for the next update, I don't know how I let this happen (since I had several days to write this update) but I'm late for lunch and need to send the newsletter.

I'll keep on holding SYX.

For the next update I'll start by SYX, because that way I'll make a better update. Consumer electronics seem to in high demand (or soon to be), because that's the second best performing industry in the DJ industries, look here:

10 Best Performing Industries (http://www.marketwatch.com/tools/industry/?bcind_ind=bc_top&bcind_period=3mo)

SYX is a $769 M market cap company with 2006 sales of $2.345 B. However, net profit margin in 2006 was just 1.92%. That's why the company had an EPS of "just" $1.22 and therefore trades at
17.5 times earnings.

But don't you find it strange, that it is so hard for an electronic products retailer to have a decent net profit margin, of say, 5%? It looks like such a great business, using common sense. Competition killed the net profit margin. But, there aren't more competitors entering the market and some of them are leaving or about to leave it, like for example www.ecost.com from PFSW. I think www.ecost.com won't survive, it isn't competitive enough (I thought differently in the past - but the company is losing too much money and it is running out of cash now).

If SYX could have a 5% net profit margin, it would then earn something like $125 M a year (considering just a bit of revenue growth) and be a $2.5 B business, that is, a $70 stock.

Impossible? No, I guess it is quite achievable.

I'm still in love with www.tigerdirect.com, by the way.

I'll keep on holding SYX.

I've derived the valuation model for SYX and was surprised by the attractiveness of the results:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=38721;image)

As for the 4 variables of the model:

1 - Dilution Factor

I inserted 1.01 (it means 1% average annual increase in the share count), because that has been the average increase since 2002, as you can check here: Systemax Inc.: Financial Statement (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=syx&lstStatement=10YearSummary&stmtView=Ann)

2 - Revenue CAGR

1.11 is my estimate, that is, 11% revenue CAGR for the next three years. That has been the revenue CAGR since 2002, as you can see on the same link: Systemax Inc.: Financial Statement (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=syx&lstStatement=10YearSummary&stmtView=Ann)

However, in Q1 2007 revenue growth, from Q1 2006 was 17.42%, so maybe revenue growth is accelerating on a long term basis and actual results may be better than my estimate.

3 - Net Profit Margin

This is my riskiest bet, because I expect net profit margin to rise from 1.92% in 2006 to 5% in 2009. I think it is time for the return of some pricing power to the electronics retail industry, as some competitors leave the space (specifically I expect www.ecost.com from PFSW to be shut down, as it is losing a lot of money each quarter - it is a direct competitor to www.tigerdirect.com).

The company recognizes the competitive pressures and is working to increase profit margins, as we can read on the Q1 2007 earnings release:

«We continued to see some competitive pricing pressures in our technology products business compared to last year; however, we were pleased that our consolidated gross margin improved significantly compared to last quarter. We also saw increased leverage in our cost structure as we lowered selling, general and administrative expense as a percentage of sales to 11.5% from 12.2% in 2006, excluding the aforementioned lawsuit settlement."»

4 - EPS Multiple

Well, as usual, here I put SYX's industry average, which is 23.89 (http://finance.yahoo.com/q/co?s=SYX).

Computing all this, I get a final estimated share price of $107.75, a 71.56% share price CAGR and an optimal selling price today of $69.03 :o

So I consider SYX extremely attractive, I'll hold it for the long term.

One of my motives to expect SYX's net profit margin to increase was:

Quote
This is my riskiest bet, because I expect net profit margin to rise from 1.92% in 2006 to 5% in 2009. I think it is time for the return of some pricing power to the electronics retail industry, as some competitors leave the space (specifically I expect www.ecost.com from PFSW to be shut down, as it is losing a lot of money each quarter - it is a direct competitor to www.tigerdirect.com).

And I was wrong. It's incredible, but PFSW was able to turn around operations at www.ecost.com, look at the news out yesterday:

• PFSweb Announces Preliminary Second Quarter Sales For eCOST.com (http://biz.yahoo.com/bw/070709/20070709005621.html?.v=1)
Business Wire (Mon 8:00am)

Sales are expected to grow 20% in Q2 2007 when compared to Q1 2007 at PFSW's ecost.com division. So I don't expect this division to be shut down, quite the opposite.

Anyway, what does this mean in terms of www.tigerdirect.com and SYX?

There are two ways to see the situation:

1) ecost.com was able to regain market share from its direct competitors;

2) The overall growth in e-commerce and the skills of PFSW's management and employees was enough to turn it around.

I guess it is a mix of the two. But I believe there's space in the market for three large websites that sell electronic goods, www.tigerdirect.com, www.ecost.com and www.newegg.com.

I remain faithful that SYX will be able to expand its net profit margin from 1.92% to 5% in three years and I'll keep holding the stock.

Over the next few updates I'll be interested in knowing more about Systemax, beyond www.tigerdirect.com. Not much time for that today.

I'll keep holding SYX, which was dragged down by the general market weakness yesterday, not a company specific issue.

One way for SYX to expand its net profit margin is for its Hosted Software division to start selling something meaningful and stop losing so much money:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=38871;image)

$81 K in revenues from that segment and $2.7 M in losses in Q1 2007. Anyway, revenues from the segment are up 170% from the year ago levels ;D

The company already invested $24 M in the hosted software segment:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=38872;image)

It should work!

Over the next few updates we'll learn more about this "Hosted Software" segment of Systemax, which basically is their ProfitCenter software: http://www.profitcenter.com/webpcs/home/

I'll keep holding SYX.

As we've seen, SYX invested a lot in this ProfitCenter software stuff, look here when they launched the initiative:

February 5, 2004
PC Maker Systemax Launches Software Unit (http://www.profitcenter.com/webpcs/news/pr_02_05_04.jsp)

Three and a half years later, the thing seems to be starting to get some market acceptance:

November 30, 2006
PCS Signs Four More Users (http://www.profitcenter.com/webpcs/news/pr_2006_11_30.jsp)

January 22, 2007
PCS Signs Current USA (http://january%2022,%202007
Of course, this still represents an incipient part of SYX's revenues (but not profits, it has been affecting them in a meaningful way), but it can be a way of expanding the overall company net profit margin from the current 1.92% to the 5% expected in my valuation model. This Software unit just needs to stop losing so much money and start making some and voila.

Nice technical development yesterday with SYX rising 6% on the day, I'll keep holding.

I'll focus my research for SYX in two major areas:

1) www.tigerdirect.com

2) www.profitcenter.com

The issue on SYX is net profit margin. The evolution of that is what will dictate if SYX will be at $70 or at $20 three years from now. I think $70 will be the case, because, like in other stocks, there's one harm of the company (ProfitCenter) that has been sucking resources and not contributing to the company's profits, and that will probably change going forward.

I'll continue holding SYX.

I'm getting really late for these updates today, let me just say that I'll hold SYX and leave the updated chart.

Nothing new on SYX, www.tigerdirect.com and www.profitcenter.com are there, working for us. I expect the stock to breakout above $22 anytime soon.

A bit of a comeback on SYX yesterday, with no news out. No changes to make to the trading plan of holding the stock.

SYX is really big, I was surprised to see they have a species of TigerDirect even for Portugal (called "minsco"), take a look at the company's subsidiaries:

Systemax Subsidiaries & Divisions (http://www.systemax.com/divisions.htm)

There were no news out or new technical developments. I'll continue holding SYX.

SYX: Short Interest UP 6.0% to 5.8M in Jul 2007
Thursday , July 19, 2007 17:52ET

According to new short interest data from NYSE, short interest for Systemax Inc (NYSE: SYX) INCREASED 6.0% to 5,824,824 shares for the month ended mid-July, 2007.

SYMBOL       JUNE            JULY          CHANGE       %CHANGE      DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
SYX       5,494,083       5,824,824        +330,741        +6.02%          16

Based on SYX's 20-day average daily share volume of 387,690, it would require approximately 16 day(s) of buying to cover this short interest.

cheers
Oliver

QuoteAccording to new short interest data from NYSE, short interest for Systemax Inc (NYSE: SYX) INCREASED 6.0% to 5,824,824 shares for the month ended mid-July, 2007.

Good morning la-onda, thanks for posting this :)

I guess people like to short SYX because of two factors:

1) Auditors expressed concerns about the company's weak internal controls.

But the company has been working and hiring people to fix this.

2) StockLemon's writing about the company's malpractices with rebates at www.tigerdirect.com.

Most websites that had costumer's complaints about www.tigerdirect.com have dismissed the complaints, because the company reimbursed many people and settled most of the issues.

We've talked about these issues way back on this thread. Unless there are new concerns (like for example, the weak US consumer), I don't think SYX's bears are right.

Technically the stock went down to touch the 50 days SMA support, which has been working well. SYX's pattern is an ascending pattern, which usually breaks on the upside.

Fundamentally, the company just needs to expand net profit margin from 1.92% to 5% to be worth $70 a share in my view. I believe this will be the case. I'll keep holding SYX for the long term.

SYX had a very nice reaction to the 50 days SMA support, rising 3.5% yesterday. I expect the stock to breakout above $22, sooner rather than later.

Brrr, terrible day for SYX, coming back down to the 50 days moving average (again). I also see support at $19.65, given by the ascending trendline on the chart below.

Fundamentally, I've been thinking that online retailers will start to shine, almost as much as people thought they would in late 1999, early 2000 :D

Take a look how Amazon, the biggest online retailer, has been doing.

I'll continue holding SYX.

SYX respected the 50 days SMA support, but I don't know about today, since the general market is setting up to open down big time. Perhaps the stock will touch the ascending triangle support, currently at $19.71 and the claws back up.

Longer term I love the company's business and I expect the stock to rise.

I don't have SYX this time (don't really like Tigerdirect), but PC connection had a real nice report this morn. Maybe bodes well for SYX.   PCCC

Quote from: BigSully1 on July 26, 2007, 10:09:02 AM
I don't have SYX this time (don't really like Tigerdirect), but PC connection had a real nice report this morn. Maybe bodes well for SYX.   PCCC

Hi BigSully1 :)

Why don't you like SYX, because of that onrebate stuff that StockLemon kept referring to? He didn't write anything else about SYX, and most people dismissed their charges. Or is there any other reason? Thanks :)

SYX held better than most yesterday and closed above its ascending trendline. I expect it to rise from this point on.

Quote from: David Randolph on July 27, 2007, 05:22:25 AM

Quote from: BigSully1 on July 26, 2007, 10:09:02 AM
I don't have SYX this time (don't really like Tigerdirect), but PC connection had a real nice report this morn. Maybe bodes well for SYX.   PCCC

Hi BigSully1 :)

Why don't you like SYX, because of that onrebate stuff that StockLemon kept referring to? He didn't write anything else about SYX, and most people dismissed their charges. Or is there any other reason? Thanks :)

SYX held better than most yesterday and closed above its ascending trendline. I expect it to rise from this point on.

I really shouldn't have such a negative attitude about Tigerdirect as I never had any personal experience with them. I just go by several friends very bad experiences several years ago (and not  just rebate related). It seems that once I have a negative first impression, it stays. I also have another friend who has bought several times recently from TD with no problems at all. Someday I will probablt try ordering something from them if I can't get it from Newegg, where I've always had great experiences. Otherwise I don't see any reason to switch to another vendor.

I just ordered another laptop, travel case, and wireless router Tues evening from Newegg. The laptop and router already arrived yesterday afternoon, the case hasn't yet as it is shipped out of Cal. Will probably be here today. No extra charge for fast shipping, even though they offer to take your money for faster.

TD offers the same price on it as Newegg, but I see no reason to switch.

QuoteI just ordered another laptop, travel case, and wireless router Tues evening from Newegg. The laptop and router already arrived yesterday afternoon, the case hasn't yet as it is shipped out of Cal. Will probably be here today. No extra charge for fast shipping, even though they offer to take your money for faster.

TD offers the same price on it as Newegg, but I see no reason to switch.

Yeah, I heard NewEgg has a great service. TigerDirect too. There's room for both in the market place (and for eCost too). Do you know which company owns www.newegg.com? Thanks BigSully :)

Thinking of online retailers, there's a company that I would like to buy again, if it dips much further, which is BFLY, remember that one? Starting to get cheap ... but I'll wait for a positive catalyst, for now the stock is trending down and losing money every quarter.

Coming back to SYX, the stock actually rose a bit yesterday on increasing volume, and I guess that's a good clue that it will respect the ascending support line on the chart below. With time, the ascending triangle will probably breakout on the upside, as it usually happens.

 Do you know which company owns www.newegg.com? Thanks BigSully :)


I always assumed Newegg to be privately owned, but don`t know for sure.

Quote from: BigSully1 on July 29, 2007, 02:10:01 PM
Do you know which company owns www.newegg.com? Thanks BigSully :)


I always assumed Newegg to be privately owned, but don`t know for sure.

Yes, they are private owned.

"Newegg.com opened for business in 2001 and achieved $1.5 billion in annual sales in its first 6 years of operation. Inc. Magazine recently distinguished Newegg in its list of America's 500 Fastest-Growing Private Companies. We are one of four companies in the list's 25-year history to qualify on growth merits while also recording $1+ billion in annual sales."

Quote from: BigSully1 on July 29, 2007, 02:10:01 PM
Do you know which company owns www.newegg.com? Thanks BigSully :)


I always assumed Newegg to be privately owned, but don`t know for sure.

This company reminds me of EggHead.com when it got bought by Onsale.com in early 1997 but in less than a year both companies went bankruptcy  ;D

I was one of the victims when I bought it 190 shares for $11 and sold it at $0.25   :D

bad experience ....

I thought Egghead.com became Newegg.com!? ???

I bought from Tiger Direct over a year ago. They were fast to ship and excellent price. I ordered the wrong memory card,  :P so I had to return it. The customer service was very good. As with any return, I had to pay for shipping to return the item.

Oh, I just did a search and found this "Despite frequent consumer confusion, Newegg has no connection with the former Egghead.com (a brand now owned by Amazon.)"

Place www.egghead.com in your address bar and it will take you to an Amazon page for egghead.com software.

Sorry if this is repeated information.
Newegg.com has a Chinese e-commerce website which is at http://www.newegg.com.cn/

I'm sorry, I'm very late for these updates today, SYX did very well yesterday, I expect it to cross above $22 soon and I'll keep holding the stock.

Good ER from PCMall.   MALL

Quote from: BigSully1 on July 31, 2007, 10:55:23 AM
Good ER from PCMall.   MALL

Probably why SYX gapped up this morning and then fell back into it's base. I just bought some SYX in anticipation of very good ER.

Quote from: BigSully1 on July 31, 2007, 11:50:57 AM

Quote from: BigSully1 on July 31, 2007, 10:55:23 AM
Good ER from PCMall.   MALL

Probably why SYX gapped up this morning and then fell back into it's base. I just bought some SYX in anticipation of very good ER.

Since it is impossible to buy the best (NewEgg), you opted to buy SYX BigSully (probably the second best). It's very nice to have you on board :)

SYX opened above $22, but that was a short term resistance level, and with the Dow going down by 150 points, the stock couldn't hold the line, unfortunately.

But over time the ascending triangle technical pattern should breakout one way and one way only: up!

Fundamentally we're starting to see several online retailers entering seriously in the black, like AMZN and now MALL. SYX's profitability probably will also improve ... even PFSW is starting to do well.

I'll continue holding SYX.

SYX continues to build inside that ascending triangle. Today the stock was removed from the naked shorts list:

BUYINS.NET: SYX, TTM, MPZ, THK, ARTE, ICOP Have Been Removed From Naked Short List Today (http://www.knobias.com/story.htm?eid=3.1.2501e41dc19686533feda6fa5b573871dbcb77f4a95c4d950352146b78ca899e)

It doesn't mean much.

Fundamentally SYX just needs to expand its net profit margin from 1.92% to 5% to be worth $70 a share. Amazon and other online retailers have been posting nice 2nd quarter numbers and I think that's a clue that online retailers are starting to get very profitable, finally.

I'll continue holding SYX, expecting it to close above $22 anytime now.

SYX traded down all day but then was able to finish marginally higher. I continue to expect the stock to breakout above $22.

I like SYX, but I have to sell two of the Main Portfolio holdings, due to the strategic move (http://www.3stocksonfire.org/trading/index.php?topic=10059.msg103651#msg103651) I'll be making today, and from the current 13 holdings of the Main, I pick SYX to sell, because of two weaknesses, one fundamental and the other one technical:

1) As one can read in my initial buying recommendation for SYX (http://www.3stocksonfire.org/trading/index.php?topic=7607.msg101654#msg101654), one of the buying motives was that I expected SYX to benefit from the potential bankruptcy of www.ecost.com (and other small players), owned by PFSW. Well, as we all know, that didn't materialize, since PFSW's management did a remarkable turnaround in the eCost division (and that's the main reason why we hold PFSW in the Main Portfolio). Also, if the US consumption slows down, SYX may see its profits turn into losses, because it has such a slim net profit margin.

2) Technically, I've been expecting SYX to break the $22 resistance level on the upside, due to the ascending channel technical pattern, but instead the stock broke the pattern on the downside:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=39453;image)

The trading plan for SYX is SELL.

Systemax CEO Buys Shares
Monday August 20, 5:27 pm ET
Systemax Chief Executive Richard Leeds Buys 10,000 Shares

NEW YORK (AP) -- The chairman and chief executive of Systemax Inc., which directly markets personal computers and other related products, exercises options for 10,000 shares of common stock, according to a Securities and Exchange Commission filing Friday.

In a Form 4 filed with the SEC, Richard Leeds reported he exercised the options Wednesday for $19.92 to $20.37 apiece.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

in total:

INSIDER TRANSACTIONS REPORTED - LAST TWO YEARS
Date Insider Shares Type Transaction Value*
15-Aug-07 LEEDS RICHARD
This is HUGE. They already own over 22,000,000 shares and add more. This is there first buy in a long time.

Officer 10,000 Indirect Purchase at $19.92 - $20.37 per share. $201,0002
15-Aug-07 LEEDS ROBERT
Officer 10,000 Indirect Purchase at $19.92 - $20.37 per share. $201,0002
15-Aug-07 LEEDS BRUCE
Officer 10,000 Indirect Purchase at $19.92 - $20.37 per share. $201,000

 ;)
Correction: Systemax Insider Story
Wednesday August 22, 8:24 am ET

NEW YORK (AP) -- In an Aug. 20 story about Systemax Inc.'s chief executive, The Associated Press erroneously reported that Richard Leeds exercised stock options to acquire shares. He bought the shares outright on the open market, according to a Securities and Exchange Commission filing.

SYX: Short Interest DN 19.3% to 4.7M in Aug 2007
Wednesday, August 22, 2007 10:52ET

According to new short interest data from NYSE, short interest for Systemax Inc (NYSE: SYX) DECREASED 19.3% to 4,698,226 shares for the month ended mid-August, 2007.

SYMBOL       JULY          AUGUST          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
SYX        5,824,824       4,698,226      -1,126,598       -19.34%           9

Based on SYX's 20-day average daily share volume of 525,340, it would require approximately 9 day(s) of buying to cover this short interest.

and yet, it seems that this stock is being pushed down...

Quote from: raspi on August 22, 2007, 01:41:52 PM
and yet, it seems that this stock is being pushed down...

How long do you think that will last? I'm a buyer today.

My biggest mistakes this year have been selling stocks that I loved from a fundamental standpoint, mostly because of technical factors. In this list I remember ASTI, JASO, EXM, TBSI, SILC ... well, there were also others that I've sold before they collapsed. Anyway, if I had held on to these big winners longer or bought back after selling, performance would be some meaningful points higher, say, about 10 pp.

SYX is one of those stocks that I've loved for a long time, from a fundamental standpoint. I think the stock can reach $70 in a couple of years time, as you can read in this thread. The last time I sold it, it was mainly because of technical factors, a stupidity really. My hands are a lot stronger now, as my confidence in fundamental analysis grew.

I've been watching the stock rise from the sidelines ... insiders have been buying, as you can read la-onda's writing just above. BigSully1, which at times was a skeptical on SYX, has bought too. These are all positive factors.

And I would like to add two more:

1) Online sales of electronic goods have been strong, even lifting the weakest ship, which is www.e-cost.com (which belongs to PFSW). I wonder what's happening with www.tigerdirect.com?

2) SYX closed above $22, it looks like it's going to breakout (not that significant, really).

With just 7% or so of available capital left, I feel I want SYX in the Main Portfolio. I can't afford loving it and watching it rise without me, like it happened with those other big gainers.

The Trading Plan is:

Buy SYX, 6.66% of capital.

Unfortunately SYX couldn't surpass that damn $22-$22.2 resistance level at this attempt. However, when people sell on the failed technical breakout, they should consider they're selling at the same prices insiders were willing to buy just recently.

I have no doubts that SYX will ultimately make a bullish breakout above the $22 resistance level, it is just a matter of time. Today I'm a bit short on time because it is a public holiday here in Portugal today (to celebrate the end of the Monarchy and start of the Republic in October 5th, 1905), but over the next update I'll put SYX's valuation model back in place.

I'll keep holding SYX for the long term.

Quote from: David Randolph on October 05, 2007, 08:23:30 AM
Unfortunately SYX couldn't surpass that damn $22-$22.2 resistance level at this attempt. However, when people sell on the failed technical breakout, they should consider they're selling at the same prices insiders were willing to buy just recently.

I have no doubts that SYX will ultimately make a bullish breakout above the $22 resistance level, it is just a matter of time. Today I'm a bit short on time because it is a public holiday here in Portugal today (to celebrate the end of the Monarchy and start of the Republic in October 5th, 1905), but over the next update I'll put SYX's valuation model back in place.

I'll keep holding SYX for the long term.

I think it just might make it through today or soon. I'm still holding...

I think it safe to say $22 is in the past now. BREAKOUT ;D

Quote from: BigSully1 on October 05, 2007, 01:06:32 PM
I think it safe to say $22 is in the past now. BREAKOUT ;D

Yeah, cool :)

There's a good lesson here too:

"If you sell a good stock just because your hands were weak, at least have the courage to buy it back at a higher price".

Nice breakout

Quote from: Garoh on October 05, 2007, 07:52:54 PM
Nice breakout

Indeed, now we just need to clear $24.23 to be free to run towards $30 plus. I put my valuation model back in place, it says that, according to my estimates, SYX will be at roughly $60 two and a half years from now. I'll keep holding SYX for the long term.

SYX will probably have to work a bit around this $24.23 technical resistance, but it looks clear that the medium term trend is up. I also enjoy the fundamentals of the company, which I know well as you can read on this thread and I'll keep holding SYX for the long term.

PC Mall (MALL) has been performing better than than SYX lately, but I believe SYX has the better fundamentals, and sold MALL today, still holding SYX.

http://stockcharts.com/h-sc/ui?s=MALL&p=D&b=5&g=0&id=p59191861522

Quote from: BigSully1 on October 09, 2007, 02:38:48 PM
PC Mall (MALL) has been performing better than than SYX lately, but I believe SYX has the better fundamentals, and sold MALL today, still holding SYX.

http://stockcharts.com/h-sc/ui?s=MALL&p=D&b=5&g=0&id=p59191861522

Hi BigSully, thanks for the information. I always thought MALL was a much larger market cap company, still just $220 M. Its fundamental trends and valuation are also quite attractive.

$0.22 EPS in Q2 2007, up from $0.03 in Q2 2006 was very significant. And Q2 2007 was the best quarter since Q4 2000 for MALL. You know I love SYX, but MALL also looks very attractive ... it seems like the whole industry (online retailing of electronic products) is coming to life, doesn't it?

Well, SYX has other ingredients, like Systemax computers and the ProfitCenter software unit.

Can't you own both, SYX and MALL?

I must say that I was very positively surprised by MALL's fundamentals. If you have some time, why do you think SYX is better than MALL? Thanks :)

Anyway, SYX looks good too ... the stock has been resilient and insiders have been buying, so I expect better than expected 3rd quarter results. It's weird, but I see there are no analysts covering SYX, so, no numbers to beat ... just EPS multiple comparisons to make when SYX reports numbers.

I'll continue holding SYX for the long term.

Quote from: David Randolph on October 10, 2007, 08:21:51 AM

Quote from: BigSully1 on October 09, 2007, 02:38:48 PM
PC Mall (MALL) has been performing better than than SYX lately, but I believe SYX has the better fundamentals, and sold MALL today, still holding SYX.

http://stockcharts.com/h-sc/ui?s=MALL&p=D&b=5&g=0&id=p59191861522

Hi BigSully, thanks for the information. I always thought MALL was a much larger market cap company, still just $220 M. Its fundamental trends and valuation are also quite attractive.

$0.22 EPS in Q2 2007, up from $0.03 in Q2 2006 was very significant. And Q2 2007 was the best quarter since Q4 2000 for MALL. You know I love SYX, but MALL also looks very attractive ... it seems like the whole industry (online retailing of electronic products) is coming to life, doesn't it?

Well, SYX has other ingredients, like Systemax computers and the ProfitCenter software unit.

Can't you own both, SYX and MALL?

I must say that I was very positively surprised by MALL's fundamentals. If you have some time, why do you think SYX is better than MALL? Thanks :)

Anyway, SYX looks good too ... the stock has been resilient and insiders have been buying, so I expect better than expected 3rd quarter results. It's weird, but I see there are no analysts covering SYX, so, no numbers to beat ... just EPS multiple comparisons to make when SYX reports numbers.

I'll continue holding SYX for the long term.

Mostly going by Sales+profit margins+ R.O.E. Yes I think MALL is still attractive overall, and what I probably should have said instead was that I believe SYX has the greater potential for further share price appreciation at this point. A couple months ago, MALL was much more attractive.

Yes I could keep both, but I'm at the point now where I need to look to sell those I feel have less price potential in order to make any new purchases, AUY was one that I felt the need to buy back yesterday.

Yes it is weird, the circumstances surrounding the lacking analyst coverage of SYX.  I think SYX still holds a certain stigma about it, maybe will for a long time to come.

QuoteYes it is weird, the circumstances surrounding the lacking analyst coverage of SYX.  I think SYX still holds a certain stigma about it, maybe will for a long time to come.

Nah, if we can surpass $30 in six months, like I think we will, I'm sure analysts will start covering the stock, after all, they won't be able to ignore a $1 B plus market cap company pushing up to new ... well, I was going to write "all time high", but I see now that was in 1996 at $53. Let's say new 10 year high.

SYX was doing well yesterday, crossing the $24.23 resistance level, but the general market took most things down by the close. Anyway, I think the general market will have just one more dip this morning and climb back up and rise another 3-5% until the end of the year. The bull market is alive and kicking. SYX should close 2007 above $30, I'll keep holding the stock.

SYX closed above the $24.23 short term resistance level. No new fundamental information out. I'll continue holding the stock for the long term.

But, didn't SYX close above the $24.23 resistance level and didn't that mean it would go higher? Well, no, that bullish breakout didn't mean anything.

I need to learn to disregard short term technical information both when it goes against my views and also when it agrees with me. But you know, it isn't easy to say something new about the fundamentals each day, I just do these daily updates so that you have something to read about the stocks you possibly own. I think this work increases your confidence in the holdings, you know I won't just say hold and forget, but face the facts every trading day.

Let's just check www.tigerdirect.com for a change. It looks cool, as always.

I'll continue holding SYX.

The following press release was out more than a month ago:

• ProfitCenter Software Announces Appointment of John Marrah as President & Chief Executive Officer (http://biz.yahoo.com/bw/070827/20070827005937.html?.v=1)
Business Wire (Mon, Aug 27)

I'm just referring to it again to say that I deposit great hope on this business unit, to expand SYX's net profit margin from the current 1.92% to something like 5%, because as we all know, the software industry almost always sports a fat net profit margin.

I'll keep holding SYX for the long term.

Nothing new for SYX today, I'll continue holding the stock.

If SYX goes down some more these bears will be selling at prices insiders were buying just a few weeks ago. I'm pretty positive SYX will post good 3rd quarter earnings, or else why would insiders be buying?

I'll continue holding SYX for the long term.

No new information on SYX ... I wonder why there aren't any analysts covering SYX, despite being a $800 M plus market cap company. This compresses the company's valuation.

I just wrote investors relations to know if there are any efforts being made to get analyst coverage.

I'll continue holding SYX.

PC Connection, Inc. Reports Third Quarter Results
Thursday October 25, 6:30 am ET 
Company Announces Record Revenue, Improved Gross Margin, and Growth in Earnings
THIRD QUARTER HIGHLIGHTS:
-- Record net sales: $456.5 million, up 10% year over year
-- Gross margin: 12.6%, up from 12.3% last year
-- Net income: $7.7 million, up 75% year over year
-- Diluted earnings per share: $.28, up from $.17 last year


MERRIMACK, N.H.--(BUSINESS WIRE)--PC Connection, Inc. (NASDAQ: PCCC - News), a leading direct marketer of information technology (IT) products and services, today announced results for the quarter ended September 30, 2007. Net sales for the three months ended September 30, 2007 increased by $41.3 million, or 9.9%, to $456.5 million from $415.2 million for the three months ended September 30, 2006. Net income for the quarter was $7.7 million, or $.28 per share, compared to $4.4 million, or $.17 per share, for the corresponding prior year quarter.
ADVERTISEMENT


"We are pleased with our record-setting Q3 performance," said Patricia Gallup, Chairman and Chief Executive Officer. "We achieved the largest revenue quarter in the Company's 25-year history, and at the same time, we experienced a 76% increase in operating income and a 65% increase in earnings per share over the third quarter of 2006."

Net sales for the nine months ended September 30, 2007 increased by $92.0 million, or 7.6%, to $1,295.8 million from $1,203.8 million for the nine months ended September 30, 2006. Net income for the nine months ended September 30, 2007 was $16.8 million, or $.62 per share, compared to $9.2 million, or $.36 per share, for the nine months ended September 30, 2006.

Quarterly Sales Growth by Business Segment:


Net sales for the SMB segment increased by 6.1% to $234.9 million compared to the third quarter of 2006. Although sales to consumers declined, corporate outbound sales within the segment grew 15.7% year over year, reflecting our focus on business customers.
Net sales for MoreDirect, Inc., our Large Account segment, increased by 14.4% to $130.0 million compared to the third quarter of 2006. This segment continues to obtain new customers and a greater share of existing customers' business.
Net sales for GovConnection, Inc., our Public Sector segment, increased by 14.2% to $91.6 million compared to the third quarter of 2006. Double digit growth was generated with federal, state, and local government and education customers.
Quarterly Sales Growth By Product Mix:


Desktop computer and server sales increased 16.3% year over year, accounting for 14.4% of net sales in the third quarter of 2007 compared to 13.6% for the corresponding prior year quarter.
Sales of storage devices increased 19.5% year over year, accounting for 9.0% of net sales in the third quarter of 2007 compared to 8.3% for the corresponding prior year quarter.
Notebooks and PDAs, our largest product sales category, accounted for 15.7% of net sales in the third quarter of 2007 compared to 17.4% for the corresponding prior year quarter.
Software sales represented 12.8% of net sales in the third quarter of 2007 compared to 12.4% for the corresponding prior year quarter.
Gross profit was $57.5 million for the third quarter of 2007 compared to $51.1 million for the third quarter of 2006. Gross profit margin, as a percentage of net sales, was 12.6% in the third quarter of 2007 compared to 12.3% in the third quarter of 2006. As noted in our first quarter 2007 earnings release, we recorded substantially all vendor consideration in 2007 as a reduction to cost of inventory purchases, pursuant to Issue No. 02-16 of the Emerging Issues Task Force. Accordingly, this additional consideration accounted for a 22 basis-point increase in gross margin compared to the third quarter of 2006. Larger agency fee revenues in the third quarter of 2007 were largely offset by lower back-end vendor rebates.

Overall annualized sales productivity increased 17% in the third quarter of 2007 compared to the third quarter of 2006. Sales productivity in our Large Account segment increased 28% in the third quarter of 2007 compared to the third quarter of 2006. For our SMB and Public Sector segments, productivity increased 15% and 9%, respectively. On a consolidated basis, the total number of sales representatives, after the inclusion of inside sales representatives, was 654 as of September 30, 2007, compared to 713 sales representatives at September 30, 2006. We estimate sales representative headcount at December 31, 2007 to grow to approximately 685.

Selling, general and administrative expenses ("SG&A") totaled $45.6 million for the third quarter of 2007 compared to $43.3 million for the third quarter of 2006. SG&A improved as a percentage of net sales to 10.0% for the third quarter of 2007 compared to 10.4% for the third quarter of 2006, reflecting our continuing effort to leverage our cost structure.

Gallup concluded, "PC Connection remains committed to making the investments necessary to continue to grow our business and improve operating performance. We believe we have the strategies and talent in place to position us well for future success and enhance long-term shareholder value."

About PC Connection, Inc.

PC Connection, Inc., a Fortune 1000 company, owns three sales companies: PC Connection Sales Corporation, MoreDirect, Inc., and GovConnection, Inc., headquartered in Merrimack, NH, Boca Raton, FL, and Rockville, MD, respectively. All three companies can deliver custom-configured computer systems overnight. Investors and media can find more information about PC Connection, Inc. at http://ir.pcconnection.com.

PC Connection Sales Corporation (1-800-800-5555), the original business of PC Connection, Inc. serving the small- and medium-sized business sector (SMB), is a rapid-response provider of information technology (IT) products and services. It offers more than 150,000 brand-name products through its staff of technically trained sales account managers and catalog telesales representatives, catalogs, and publications, and its website at www.pcconnection.com. The subsidiary serves the Apple/Macintosh community through its MacConnection division (1-800-800-2222), which also publishes specialized catalogs and is online at www.macconnection.com.

MoreDirect, Inc. (561-237-3300), www.moredirect.com, provides corporate technology buyers with a comprehensive web-based e-procurement solution and in-depth IT supply-chain expertise, serving as a one-stop source by aggregating more than 300,000 products from the inventories of leading IT wholesale distributors and manufacturers. MoreDirect's TRAXX® system is a seamless end-to-end interface that empowers clients to electronically source, evaluate, compare prices, and track related technology product purchases in real-time.

GovConnection, Inc. (1-800-800-0019) is a provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, catalogs, and publications, and online at www.govconnection.com.

pccc-g

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of changes in market demand and the overall level of economic activity, or in the level of business investment in information technology products, competitive products and pricing, product availability and market acceptance, new products, fluctuations in operating results, and the ability of the Company to hire and retain essential personnel, and other risks detailed under the caption "Risk Factors" in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission for the quarter ended June 30, 2007. More specifically, the statements in this release concerning the Company's outlook for 2007 and the statements concerning the Company's gross margin percentage, productivity, and selling and administrative costs and other statements of a non-historical basis are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties include the ability to realize market demand for and competitive pricing pressures on the products and services marketed by the Company, the continued acceptance of the Company's distribution channel by vendors and customers, continuation of key vendor and customer relationships and support programs and the ability of the Company to hire and retain qualified sales representatives and other essential personnel. The Company assumes no obligation to update the information in this press release or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise.

CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS 
At or for the Three Months Ended September 30,     2007              2006           
(Dollars and shares in thousands, except operating data, price/earnings ratio, and per share data)   % of    % of  %   
      Net Sales      Net Sales  Change 
         
Operating Data:       
Net sales  $  456,470     $  415,213    9.9  % 
Diluted earnings per share  $  .28     $  .17    64.7  % 
         
Gross profit margin   12.6  %     12.3  %   
Operating margin   2.6      1.6     
Return on equity (1)   14.5      9.8     
         
Catalogs distributed   3,199,000      3,641,000    (12.1  )% 
Orders entered (2)   363,700      381,700    (4.7  )% 
Average order size (2)  $  1,543     $  1,295    19.2  % 
         
Inventory turns (1)   22      22     
Days sales outstanding   45      43     
         
         
Product Mix:       
Notebooks & PDAs  $  71,730   15.7  %   $  72,123   17.4  %  (0.5  )% 
Desktops/Servers   65,776   14.4     56,545   13.6   16.3   
Storage Devices   41,233   9.0     34,508   8.3   19.5   
Software   58,104   12.8     51,692   12.4   12.4   
Net/Com Products   37,924   8.3     34,610   8.3   9.6   
Printers & Printer Supplies   43,449   9.5     43,535   10.5   (0.2  ) 
Video, Imaging & Sound   65,236   14.3     57,250   13.8   13.9   
Memory & System Enhancements   20,460   4.5     19,028   4.6   7.5   
Accessories/Other     52,558   11.5         45,922   11.1     14.5   
$  456,470   100.0  %   $  415,213   100.0  %  9.9  % 
         
         
Net Sales of Enterprise Server and Networking Products (included in the above Product Mix): 
         
$  146,913     32.2  %   $  125,766     30.3  %  16.8  % 
         
         
Stock Performance Indicators:       
Actual shares outstanding   26,815      25,695     
Total book value per share  $  8.10     $  7.16     
Tangible book value per share  $  5.84     $  4.77     
Closing price  $  12.50     $  11.55     
Market capitalization  $  335,188     $  296,777     
Trailing price/earnings ratio (3)   16      32     
         
(1) Annualized 
(2) Does not reflect cancellations or returns 
(3) Earnings is based on the last four quarters 
SELECTED SEGMENT INFORMATION                         
For the Three Months Ended September 30,     2007        2006 
  Net     Gross   Net     Gross 
(Dollars in thousands)   Sales   Margin (%)   Sales   Margin (%) 
           
PC Connection Sales Corporation (SMB)   $  234,850   14.3  %   $  221,330   13.3  % 
MoreDirect (Large Account)    130,027   11.5     113,690   11.4   
GovConnection (Public Sector)      91,593   9.8         80,193   10.8     
Total   $  456,470   12.6  %   $  415,213   12.3  % 
CONSOLIDATED INCOME STATEMENTS                             
Three Months Ended September 30,     2007     2006 
(Amounts in thousands, except per share data)   Amount     % of Net Sales   Amount     % of Net Sales 
           
Net sales   $  456,470    100.0  %    $  415,213    100.0  % 
Cost of sales      398,940      87.4          364,070      87.7     
Gross Profit    57,530    12.6      51,143    12.3   
           
Selling, general and administrative expenses    45,572    10.0      43,291    10.4   
Special charges      -      -          1,050      0.3     
Income From Operations    11,958    2.6      6,802    1.6   
           
Interest expense    (218  )   (0.1  )     (394  )   (0.1  ) 
Other, net    192    0.1      38    -   
Income tax provision      (4,247  )   (0.9  )       (2,058  )   (0.4  ) 
Net Income   $  7,685      1.7  %    $  4,388      1.1  % 
           
           
Weighted average common shares outstanding:           
Basic      26,814            25,446       
Diluted      27,017            25,667       
Earnings per common share:           
Basic   $  0.29         $  0.17       
Diluted   $  0.28         $  0.17       
CONSOLIDATED INCOME STATEMENTS                             
Nine Months Ended September 30,     2007     2006 
(Amounts in thousands, except per share data)   Amount     % of Net Sales   Amount     % of Net Sales 
           
Net sales   $  1,295,772    100.0  %    $  1,203,785    100.0  % 
Cost of sales      1,134,287      87.5          1,055,481      87.7     
Gross Profit    161,485    12.5      148,304    12.3   
           
Selling, general and administrative expenses    134,770    10.4      129,780    10.8   
Special charges      -      -          2,391      0.2     
Income From Operations    26,715    2.1      16,133    1.3   
           
Interest expense    (668  )   (0.1  )     (1,475  )   (0.1  ) 
Other, net    653    0.1      34    -   
Income tax provision      (9,877  )   (0.8  )       (5,487  )   (0.4  ) 
Net Income   $  16,823      1.3  %    $  9,205      0.8  % 
           
           
Weighted average common shares outstanding:           
Basic      26,765            25,330       
Diluted      27,009            25,459       
Earnings per common share:           
Basic   $  0.63         $  0.36       
Diluted   $  0.62         $  0.36       
CONSOLIDATED BALANCE SHEETS     September 30,     December 31, 
(amounts in thousands)        2007         2006     
         
ASSETS       
Current Assets:       
Cash and cash equivalents    $  23,685    $  17,582   
Accounts receivable, net      187,020     170,222   
Inventories–merchandise      75,537     69,407   
Deferred income taxes      4,403     3,837   
Income taxes receivable      675     627   
Prepaid expenses and other current assets      3,578         3,882     
Total current assets    294,898     265,557   
Property and equipment, net     20,319     19,542   
Goodwill      56,867     56,867   
Other intangibles, net      3,559     4,363   
Other assets        264         355     
Total Assets     $  375,907      $  346,684     
         
LIABILITIES AND STOCKHOLDERS' EQUITY     
         
Current Liabilities:       
Current maturities of capital lease obligations:     
To affiliate     $  504    $  464   
To third party      73     395   
Accounts payable      117,013     110,977   
Accrued expenses and other liabilities    18,527     17,389   
Accrued payroll        7,874         9,367     
Total current liabilities    143,991     138,592   
Capital lease obligations, less current maturities:     
To affiliate      4,453     4,836   
Other liabilities      2,883     -   
Deferred income taxes        7,430         6,352     
Total Liabilities      158,757         149,780     
Stockholders' Equity:       
Common stock    272     269   
Additional paid-in capital    93,145     89,537   
Retained earnings    125,798     109,321   
Treasury stock at cost      (2,065  )      (2,223  ) 
Total Stockholders' Equity      217,150         196,904     
Total Liabilities and Stockholders' Equity   $  375,907      $  346,684     
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 
Nine months ended September 30, 2007 (amounts in thousands) 
Common Stock
    Additional     Retained     Treasury Shares
     
   Shares     Amount   Paid-In Capital     Earnings     Shares     Amount     Total 
                 
Balance – January 01, 2007  26,862   $269   $89,537   $109,321   (352)   ($2,223)   $196,904 
               
Cumulative effect of change in               
accounting principle  -   -   -   (346)   -   -   (346) 
               
Stock

compensation expense
-   -   202   -   -   -   202 
               
Exercise of stock options, including               
income tax benefits  305   3   3,430   -   -   -   3,433 
               
Issuance of stock under Employee               
Stock Purchase Plan  10   -   134   -   -   -   134 
               
Nonvested stock awards      (158)     25   158   - 
               
Net income  -   -   -   16,823   -   -   16,823 
               
Balance – September 30, 2007  27,177   $272   $93,145   $125,798   (327)   ($2,065)   $217,150 
CONSOLIDATED STATEMENTS OF CASH FLOWS             
Nine Months Ended September 30, (Amounts in thousands)        2007           2006     
       
Cash Flows from Operating Activities:     
       
Net income   $  16,823    $  9,205   
Adjustments to reconcile net income to net cash provided by operating activities:     
     
Depreciation and amortization    5,158     5,227   
Provision for doubtful accounts    1,482     2,094   
Deferred income taxes    512     1,536   
Loss on disposal of fixed assets    53     63   
Stock compensation expense    202     277   
Gross excess tax benefit from exercise of stock options    (359  )    (1  ) 
Income tax benefits from exercise of stock options    889     231   
       
Changes in assets and liabilities:     
Accounts receivable    (18,280  )    1,415   
Inventories    (6,130  )    6,945   
Prepaid expenses and other current assets    256     1,142   
Other non-current assets    91     36   
Accounts payable    6,036     (14,723  ) 
Accrued expenses and other liabilities      2,182         5,533     
Net cash provided by operating activities      8,915         18,980     
       
       
Cash Flows from Investing Activities:     
       
Purchases of property and equipment    (5,184  )    (6,401  ) 
Proceeds from sale of property and equipment      -         20     
Net cash used for investing activities      (5,184  )      (6,381  ) 
       
       
Cash Flows from Financing Activities:     
       
Proceeds from short-term borrowings    3,313     317,280   
Repayment of short-term borrowings    (3,313  )    (330,159  ) 
Repayment of capital lease obligations    (665  )    (614  ) 
Exercise of stock options    2,544     2,822   
Gross excess tax benefit from exercise of stock options    359     1   
Issuance of stock under Employee Stock Purchase Plan      134         120     
Net cash provided by (used for) financing activities      2,372         (10,550  ) 
Increase in cash and cash equivalents    6,103     2,049   
Cash and cash equivalents, beginning of period      17,582         9,770     
Cash and cash equivalents, end of period   $  23,685      $  11,819     




Contact:
PC Connection, Inc.
Stephen Baldridge, 603-683-2322
VP of Finance & Corporate Controller

Thanks for the info Sully :)

There's intense competition in the online electronics retailing industry, and that probably explains the extremely slim profit margin of the business. It doesn't mean it's a bad business.

QuoteI just wrote investors relations to know if there are any efforts being made to get analyst coverage.

I got this reply from SYX:

«Although historically we have had no research coverage, we have a relatively new CFO, Larry Reinhold, who has been reaching out to sell side analysts connected to the industry and perhaps one or more of them will decide to cover the company.

Donna Gehnrich

Systemax Inc.
(516) 608-7020»

So, they're working on it.

I'll continue holding SYX for the long term.

SYX crossed the $22 resistance level with elegance and then it came back down to test the new support, prior resistance. Now it is going back up ... if everything continues "by the book" it will close above $26 in a short period of time.

Anyway, I need to strengthen my fundamental case on this one. It isn't as strong as in other holdings.

I'll keep holding SYX.

When I looked at SYX today at the Main's list I thought to myself: "SYX doesn't have a lot of potential" ... but then I've checked www.tigerdirect.com and it really looks cool, look at the promotional video they now have for the "Carl's Deal of the Day".

I truly enjoy SYX as a business and will keep on holding it for the long term.

PC Mall Reports Record Third Quarter Diluted Earnings Per Share of $0.22 on 19% Revenue Growth
Tuesday October 30, 9:00 am ET 
Highlights:
-- Record third quarter operating profit of $5.8 million in Q3 2007 compared to Q3 2006 operating profit of $4.1 million.
-- Record third quarter diluted earnings per share of $0.22 in Q3 2007 compared to $0.15 in Q3 2006.
-- Record consolidated net sales of $287.7 million for Q3 2007, an increase of 19%, compared to consolidated net sales of $242.2 million for Q3 2006.
-- Commercial net sales for Q3 2007 increased 12% from Q3 2006.
-- Public sector net sales for Q3 2007 increased 79% from Q3 2006.
-- Consumer net sales for Q3 2007 increased 3% from Q3 2006.


TORRANCE, Calif.--(BUSINESS WIRE)--PC Mall, Inc. (NASDAQ:MALL - News) today reported Q3 2007 diluted earnings per share of $0.22 compared with $0.15 for Q3 2006. Net income for Q3 2007 was $3.0 million, an increase of $1.1 million or 56% from Q3 2006. Consolidated net sales for Q3 2007 were $287.7 million, an increase of $45.5 million or 19% from consolidated net sales of $242.2 million in Q3 2006.
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Frank Khulusi, Chairman, President and CEO of PC Mall, Inc. said, "We are very pleased with our record third quarter 2007 results. Our laser-sharp focus on profitability and sales growth has contributed to this strong performance."

Khulusi continued, "On September 17, 2007, we completed the acquisition of SARCOM, Inc., one of the nation's largest independent IT solutions providers. We believe that SARCOM, now a wholly-owned subsidiary of PC Mall, Inc., will enhance PC Mall's capabilities as a reseller of advanced technology product solutions and services. Additionally, we look forward to the fourth quarter as we enter the holiday season on the heels of Apple's OS X Leopard launch, and we remain focused on profitability and sales growth. We are very pleased that we have achieved a 2% consolidated operating profit margin for Q3 2007. We expect that there will be fluctuations in our quarterly operating profit margin, in part as a result of probable fluctuations in sales and the various components of gross margin, and other factors."

Q3 2007 consolidated net sales were $287.7 million compared to $242.2 million in Q3 2006, an increase of $45.5 million. Core business (which excludes OnSale.com) net sales for Q3 2007 were $283.3 million compared with $239.9 million in Q3 2006, an increase of 18%. Public sector sales increased by 79% primarily due to the products business acquired from GMRI in September 2006 and a strong finish in the federal government sales season. Commercial net sales grew 12% in Q3 2007 compared to Q3 2006, primarily due to increases in account executive productivity and approximately $8 million of SARCOM's sales from September 17 through the end of the quarter. Consumer net sales increased by 3% in Q3 2007 compared to the same quarter last year primarily due to increased sales of Apple products, offset by some delayed purchases due to the pending release of Apple's OS X Leopard, which started shipping in late October. OnSale.com net sales were $4.4 million in Q3 2007, an increase of 94% from Q3 2006.

Consolidated gross profit in Q3 2007 increased to $34.2 million compared to $31.6 million in Q3 2006 primarily due to the increase in sales discussed above. Consolidated gross profit margin for Q3 2007 decreased to 11.9% from 13.0% in Q3 2006 primarily due to a reduction in a single vendor consideration program beginning in the fourth quarter of 2006. This reduction was previously anticipated and announced last year. Consolidated gross profit margin for Q3 2007 also includes the effect of a significant year-over-year increase in federal government sales at lower product margins.

Consolidated SG&A expenses as a percent of net sales declined to 9.9% in Q3 2007 compared to 11.3% in Q3 2006, primarily due to decreases in labor costs as a percentage of net sales, and operating leverage in other areas of our business.

Commercial and public sector account executive headcount included in SG&A, excluding SARCOM, at the end of Q3 2007 amounted to 569 employees, down 37 account executives from Q3 2006 and down 5 account executives from Q2 2007. Total account executives, including those focused on commercial, public sector and consumer customers, excluding SARCOM, numbered 665 at the end of Q3 2007, down 37 account executives from Q3 2006, but up 19 account executives from Q2 2007. Average tenure for a commercial and public sector account executive at the end of Q3 2007 was 36 months, with 7% of the commercial and public sector workforce in training, 33% with less than one year experience and 45% with less than two years experience.

We had cash and cash equivalents of $9.8 million at September 30, 2007 compared to $5.8 million at December 31, 2006. Accounts receivable at September 30, 2007 of $160.5 million increased by $46.3 million from December 31, 2006, primarily due to the acquisition of SARCOM as well as increased sales to commercial customers. Our inventory of $59.7 million at September 30, 2007 represents an increase of $8.4 million from December 31, 2006. Accounts payable increased by $34.6 million from December 31, 2006, primarily due to timing of vendor payables and the addition of payables of SARCOM. Total outstanding borrowings under our line of credit and term note increased by $29.6 million to $64.3 million at September 30, 2007 from December 31, 2006, primarily due to financing related to the SARCOM acquisition.

Conference Call

Management will hold a conference call on Tuesday, October 30, 2007 at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) to discuss the third quarter results. To listen to PC Mall management's discussion of the third quarter results live, access the PC Mall website, www.pcmall.com, and click on the Investor Relations section.

A conference call replay will be available immediately following the call until November 19, 2007 and can be accessed by calling: 888-286-8010 and inputting pass code 25739057.

About PC Mall

PC Mall, Inc., together with its subsidiaries, is a rapid response supplier of technology solutions for businesses, government and educational institutions as well as consumers. More than 100,000 different products from companies such as Apple, HP, IBM, Lenovo and Microsoft are marketed to customers using relationship-based selling, direct marketing, catalogs and the Internet (www.pcmall.com, www.macmall.com, www.pcmallgov.com, www.gmri.com, www.wareforce.com, www.sarcom.com and www.onsale.com). Customer product orders are rapidly filled by our distribution center strategically located near FedEx's main hub or by our extensive network of distributors, which is one of the largest networks in the industry.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding our expectations, hopes or intentions regarding the future, including, but not limited to, expectations or statements relating to the impact of the SARCOM acquisition on our capabilities and our hopes regarding the fourth quarter of 2007, future sales, our positive operating results trend line, future gross margin, and future operating profits or future operating profit margin. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ materially include without limitation the following: uncertainties relating to the relationship between the number of our account executives and productivity; decreases in revenues related to consumer, commercial and public sector sales including, but not limited to, potential decreases in sales resulting from the loss of customers; risks related to our ability to retain key personnel; risks associated with acquisitions of other businesses (including our recent acquisition of SARCOM), including the challenges and costs of closing, integration and achieving synergies expected from such acquisitions; the impact of acquisitions on relationships with key customers and vendors; potential decreases in sales related to changes in our vendors products; increased competition and pricing pressures, including, but not limited to, increased competition from direct sales by some of our largest vendors; risks of decreased sales related to the potential lack of availability of government funding applicable to our public sector contracts; availability of key vendor incentives and other vendor assistance; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; risks of business and other conditions in the Asia Pacific region and our limited experience operating in the Philippines, which could prevent us from realizing expected benefits from our Philippines operations; increased expenses, including, but not limited to, uncertainties relating to our ability to replace any part of our existing Canadian labor subsidy, which expires in December 2007; interest expense; our advertising, marketing and promotional efforts may be costly and may not achieve desired results; uncertainties relating to our ability to identify suitable acquisition targets, to complete acquisitions of identified targets and to integrate companies we may acquire, including SARCOM; risks due to shifts in market demand or price erosion of owned inventory; risks related to foreign currency fluctuations; litigation by or against us; availability of financing, including availability under our existing credit lines; and inability to convert back orders to completed sales. Additional factors that could cause our actual results to differ are discussed under the heading "Risk Factors" in Item 1A, Part II of our Form 10-Q for the quarterly period ended June 30, 2007, on file with the Securities and Exchange Commission, and in our other reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements.

PC MALL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)

       
    Three Months Ended

September 30,
  Nine Months Ended

September 30,

    2007        2006        2007        2006 
Net sales  $  287,688     $  242,171   $  807,426     $  710,512 
Cost of goods sold   253,509    210,615    707,503    620,533 
Gross profit   34,179    31,556    99,923    89,979 
Selling, general and administrative expenses   28,413    27,480    84,315    83,339 
Operating profit   5,766    4,076    15,608    6,640 
Interest expense, net   800    912    2,530    2,912 
Income before income taxes   4,966    3,164    13,078    3,728 
Income tax expense   1,988    1,256    5,233    1,480 
Net income  $  2,978   $  1,908   $  7,845   $  2,248 
             
             
Basic and Diluted Earnings Per Common Share             
Basic  $  0.24   $  0.16   $  0.63   $  0.19 
Diluted   0.22    0.15    0.58    0.18 
             
Weighted average number of common shares outstanding:             
Basic   12,626    12,214    12,480    11,978 
Diluted   13,735    12,927    13,611    12,842 
PC MALL, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except per share amounts and share data)

       
  September 30,
2007
  December 31,
2006
 
ASSETS         
Current assets:         
Cash and cash equivalents   $  9,799   $  5,836   
Accounts receivable, net of allowances of $4,583 and $4,630    160,524    114,184   
Inventories, net    59,711    51,268   
Prepaid expenses and other current assets    9,322    8,497   
Deferred income taxes    4,564    4,594   
Total current assets    243,920    184,379   
Property and equipment, net    9,255    8,055   
Deferred income taxes    1,034    6,248   
Goodwill    34,024    3,525   
Intangible assets, net    5,538    931   
Other assets    480    429   
Total assets   $  294,251   $  203,567   
         
LIABILITIES AND STOCKHOLDERS' EQUITY         
Current liabilities:         
Accounts payable   $  110,452   $  75,837   
Accrued expenses and other current liabilities    23,661    20,215   
Deferred revenue    16,243    11,964   
Line of credit    58,915    32,477   
Note payable – current    775    500   
Total current liabilities    210,046    140,993   
Note payable and other long-term liabilities    4,873    1,750   
Total liabilities    214,919    142,743   
Commitments and contingencies         
Redeemable common stock, $0.001 par value, 633,981 shares issued and outstanding    7,500    —   
Stockholders' equity:         
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding    —    —   
Common stock, $0.001 par value; 30,000,000 shares authorized; 13,611,035 and 12,648,720 shares issued; and 13,316,835 and 12,354,520 shares outstanding, respectively    14    13   
Additional paid-in capital    89,438    87,465   
Treasury stock, at cost: 294,200 shares    (1,015  )   (1,015  ) 
Accumulated other comprehensive income    1,430    241   
Accumulated deficit    (18,035  )   (25,880  ) 
Total stockholders' equity    71,832    60,824   
Total liabilities and stockholders' equity   $  294,251   $  203,567   




Contact:
PC Mall, Inc.
Frank Khulusi, Chairman, President and CEO
Brandon LaVerne, Interim CFO
310-354-5600
or
Genesis Select
Budd Zuckerman, 303-415-0200

--------------------------------------------------------------------------------
Source: PC Mall, Inc.

QuotePC Mall Reports Record Third Quarter Diluted Earnings Per Share of $0.22 on 19% Revenue Growth

Thanks for this information Sully. MALL didn't react well to earnings, since it went down 8.8% yesterday. But SYX is different, it didn't have the same kind of run up as MALL did.

Since insiders bought shares in the open market this quarter I expect SYX to deliver strong 3rd quarter results and a positive outlook for the seasonally stronger 4th quarter.

I'll keep holding SYX.

Quote from: David Randolph on November 01, 2007, 07:47:40 AM

QuotePC Mall Reports Record Third Quarter Diluted Earnings Per Share of $0.22 on 19% Revenue Growth

Thanks for this information Sully. MALL didn't react well to earnings, since it went down 8.8% yesterday. But SYX is different, it didn't have the same kind of run up as MALL did.

Since insiders bought shares in the open market this quarter I expect SYX to deliver strong 3rd quarter results and a positive outlook for the seasonally stronger 4th quarter.

I'll keep holding SYX.

Yes David, my expectations are very high on SYX. If I'm disappointed, I'll have to assume Tigerdirect and Systemax still have problems. I estimate ER to be out about 11/8 and am holding through them.

QuoteYes David, my expectations are very high on SYX. If I'm disappointed, I'll have to assume Tigerdirect and Systemax still have problems. I estimate ER to be out about 11/8 and am holding through them.

Me too. No chance selling before 3rd quarter earnings release, regardless of what the general market does. I'll keep holding SYX.

SYX closed back below $22, but I consider this "short term technical noise". Anyway, my fundamental case here isn't as strong as in other holdings, I just "hope" net profit margin will expand.

But I'll hold through the 3rd quarter earnings release, I want to know more how SYX's operations are going, insiders bought shares for a (positive) reason, didn't they?

Fortunately SYX's earnings will be released tomorrow, because the stock is starting to get on my nerves:

• Systemax Inc. Schedules Earnings Conference Call and Webcast Announcing 2007 Third Quarter Results (http://biz.yahoo.com/bw/071105/20071105006789.html?.v=1)
Business Wire (Mon 5:58pm)

Systemax gave us some more news today:

• Novint Technologies and TigerDirect Sign Agreement to Sell Innovative Falcon Game Controller (http://biz.yahoo.com/prnews/071106/aqtu098.html?.v=27)
PR Newswire (Tue 6:00am)

«Replacing a mouse or joystick, the Novint Falcon is the only controller that lets users feel realistic high-fidelity touch sensations when playing enabled games.»

Hmm, this news is obviously a non-event for SYX, I just wonder if this Novint (NVNT.OB) has a licensing agreement with IMMR. If not they'll probably suffer a patent infringement lawsuit, just like Sony and its PlayStation controller.

I'll hold SYX through earnings, I guess insiders bought for a (good) reason.

SYX reacted positively after touching the 50 days SMA support, but I guess all this will be somewhat irrelevant after today's earnings release, scheduled to happen after the close:

• Q3 2007 Systemax Earnings Release - After Market Close (http://biz.yahoo.com/research/earncal/20071107.html?t=syx)
CCBN (Wed 7:07am)

SYX posted $0.37 EPS in Q1 and Q2 2007, so $0.74 in the 1st half. If the second half resembles the first, SYX will earn $1.48 for the full year of 2007, so it would be currently trading at 14.7 times 2007 earnings, which is attractive.

But I think SYX needs more than this to move significantly higher. I want to see at least $0.40 EPS in Q3 2007.

We'll see what we'll get, I'll naturally hold through earnings.

Well at least SYX's report looks excellent. Not sure how much credit the market will give them though under the current conditions.

Source: Systemax Inc.


Systemax Reports Record Third Quarter Results
Wednesday November 7, 4:02 pm ET 
Third Quarter Highlights:
-- Sales: $687 million, up 20% - all time record
-- Operating Income: $26 million, up 35% - all time record
-- Net Income: $ 17.6 million, up 42% - all time record
-- Diluted Earnings Per Share: $.47 vs. $.33, up 42%


PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Systemax Inc. (NYSE:SYX - News) today announced results for the third quarter and nine months ended September 30, 2007.
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Net sales for the quarter increased 20% to $687 million compared to $575 million in the third quarter of 2006. Sales of technology products (computers, computer supplies and consumer electronics) grew by 20% and sales of industrial products grew by 18%. Gross margin for the quarter improved to 16.1% from 15.9% in the third quarter of 2006. Operating income was $25.8 million in the quarter compared to $19.2 million in the third quarter of 2006, and net income for the quarter was $17.6 million, or $.47 per diluted share, compared to $12.5 million, or $.33 per diluted share, in the third quarter of 2006.

For the nine months ended September 30, 2007, net sales increased 18% to $ 2.0 billion from $1.7 billion during the same period last year. Gross margin was 15.3% in the first nine months of both 2007 and 2006. Operating income was $67.4 million compared to $50.6 million in the third quarter of 2006. Net income increased 22% to $45.3 million or $1.20 per diluted share compared to $37.1 million or $.99 per diluted share a year ago. Included in net income for the nine months ended September 30, 2007 is an after tax gain of approximately $1.5 million or $.04 per diluted share related to a favorable lawsuit settlement. Included in net income for the nine months ended September 30, 2006 is an after tax gain of $4.3 million, or $.11 per diluted share from the sale of a warehouse facility.

Richard Leeds, Chairman and Chief Executive Officer, said "Our all time record third quarter 2007 results, highlighted by our 20% growth in sales, improved gross margin and 35% growth in operating income, is the result of continued execution of our growth plan and demonstrates the leverage in our business model. Our consolidated gross margin has now improved for each of the last three consecutive quarters, increasing from 12.9% in the fourth quarter of 2006 to 14.3% in the first quarter of 2007, 15.3% in the second quarter and 16.1% in the third quarter. We also leveraged our cost structure as selling, general and administrative expense as a percentage of sales in the third quarter was 12.3% compared to 12.6% in the third quarter 2006, including increased consulting and staffing costs associated with the requirements of Section 404 of the Sarbanes-Oxley Act."

Gilbert Fiorentino, Chief Executive Officer of TigerDirect.com and the technology products segment, noted, "strong sales growth in both the North American and European markets continued in the third quarter. North American technology product sales grew 20% in the quarter, driven by growth in all sales channels. European sales grew 27% overall, 19% after exchange rate effects, in the third quarter, driven primarily by growth in internet sales and public sector customers."

Richard Leeds, commenting on other operations, noted "in the industrial products segment, sales grew 18% in the third quarter compared to 2006, driven primarily by increased internet sales and continuing competitive advantages due to our worldwide sourcing and aggressive pricing strategies."

Larry Reinhold, Chief Financial Officer, noted that the Company's overall financial condition remains solid as evidenced by its working capital of $253 million, including cash and equivalents of $98 million. Cash flow from operations for the quarter was approximately $18.0 million and for the first nine months of 2007 was over $63 million. In the last twelve months we have generated cash from operations of $101 million while investing $8 million in capital expenditures. This strong cash generation enabled our $37 million dividend for our shareholders earlier this year and our current strong and liquid balance sheet. Days sales outstanding were 25 days at September 30, 2007, and inventory turned at an annual rate of approximately 9 times during the quarter. Our effective tax rate was 35.5% for the first nine months of 2007, down slightly from the prior year.

Systemax Inc. (www.systemax.com), a Fortune 1000 company, sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. It also manufactures and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based, on-demand application for multichannel direct marketing companies.

SYSTEMAX INC.

Condensed Consolidated Statements of Operations – Unaudited 
(In thousands, except per share amounts) 
             
Three Months Ended   Nine Months Ended 
September 30,
  September 30,

2007
  2006
  2007
  2006

Net sales  $687,317   $575,041   $2,010,541   $1,697,191 
Cost of sales  576,664   483,527   1,703,896   1,437,544 
Gross profit  110,653   91,514   306,645   259,647 
Gross margin  16.1%   15.9%   15.3%   15.3% 
Selling, general and administrative expenses  84,847   72,349   239,233   209,030 
Operating income  25,806   19,165   67,412   50,617 
Operating margin  3.7%   3.3%   3.4%   3.0% 
Interest and other (income) expense, net  (1,113)   (343)   (2,811)   (7,111) 
Income before income taxes  26,919   19,508   70,223   57,728 
Provision for income taxes  9,275   7,057   24,922   20,614 
Effective tax rate  34.5%   36.2%   35.5%   35.7% 
Net income  $17,644   $12,451   $45,301   $37,114 
Net margin  2.6%   2.2%   2.3%   2.2% 
         
Net income per common share:         
Basic  $.49   $.36   $1.26   $1.06 
Diluted  $.47   $.33   $1.20   $.99 
   
Weighted average common and common equivalent shares: 
Basic  36,055   35,054   35,928   34,887 
Diluted  37,734   37,967   37,667   37,666 
SYSTEMAX INC.

Condensed Consolidated Balance Sheets 
(In thousands) 
   
     
   
 
September 30,

2007
  December 31,

2006

(unaudited)   
Current assets:     
Cash and cash equivalents  $97,784   $86,964 
Accounts receivable, net  181,259   164,615 
Inventories, net
234,877   233,136 
Prepaid expenses and other current assets  34,731   34,646 
Total current assets  548,651   519,361 
Property, plant and equipment, net  49,356   48,586 
Deferred income taxes and other assets  15,537   16,214 
Total assets  $613,544   $584,161 
     
Current liabilities:     
Short-term debt  $494   $12,788 
Accounts payable and accrued expenses  295,248   277,174 
Total current liabilities  295,742   289,962 
Long-term debt  259   483 
Other liabilities  6,373   4,226 
     
Shareholders' equity  311,170   289,490 
Total liabilities and shareholders' equity  $613,544   $584,161 

QuoteWell at least SYX's report looks excellent. Not sure how much credit the market will give them though under the current conditions.

$0.47 EPS is awesome. Now, what did the guys selling today knew? Nothing. This market is getting more and more unpredictable for people using a chart ... "buy the rumor, sell the fact", "nothing new ever occurs in the market" are things of the past.

With SYX's growth rate I would say they're going to make more than $2 EPS over the next 12 month period. Trading at 10 - 11 times earnings.

SYX's results were awesome:

• Systemax Reports Record Third Quarter Results (http://biz.yahoo.com/bw/071107/20071107006390.html?.v=1)
Business Wire (Wed 4:02pm)

Everything is going as I expected, that is, gross and net profit margin has been expanding on a sequential basis.

After profiting $1.21 in the first nine months of the year, I see SYX having a full year 2007 EPS of about $1.61 and I estimate $2 EPS for 2008.

SYX closed yesterday with a 10 times earnings multiple, while EPS grew 42% from the year ago level. This is very attractive.

I've also listened to the conference call (by the way, www.earnings.com is a great website) and learned that SYX has been opening retail stores in the US. They already have 8 stores and will open another 2 in this quarter. Management said the retail stores, because there are more impulsive buys there, carry a higher gross margin than internet sales, which is compensated by a higher cost of maintaining a store vs website.

Anyway, the call was pretty quick (not a lot of people listening), if you have some time you can listen here: http://www.fulldisclosure.com/conferencecall.asp?date=20071107&client=cb#

I'm going to maintain my valuation model estimates (http://www.3stocksonfire.org/fundamental.model.php?ticker=SYX&portfolio=main) for now, even though revenue is growing by 20% a year and I have just 11% in the model. I also expect net profit margin to reach 5% two years from now and in Q3 2007 it was 2.6%, up from 1.92% when I initially derived my estimates.

Insiders have been buying shares for a good reason, people selling over the last few days ... they didn't know what they were doing in my opinion.

I'm much more confident in SYX's long term outlook now and I'll hold the stock for the long term.

I too am very impressed by the results. 2B in sales already for 2007. Great job.

I visited tigerdirect again. Love their product videos, but their product descriptions, specs and pictures could use some improvement, and when looking for products, their subcategory groups need some help.

Also, they don't carry the variety that my favorite does, like the new Intel X38 chip MOBO's. Tiger has one, Newegg has 9 to choose from. Some of the newest video card selections are also lacking at TD. Serious gamers will often pay above manufacturer's suggested retail prices for the latest and greatest, when they first come out, and online retailers are more than happy to mark up the price to accomodate them. Tiger should get on the ball there.

One of these days, I'll order something from them. In the meantime I'm happily holding their stock. They are definitely doing something right.  ;D

Can you believe that people were still selling this in the low 20's this morn? Thank you for being stupid, whoever you were.  >:D

Upside reccomended a buy on SYX last week.

Wouldn't surprise me at all to see it back on the IBD 100 again soon. It was actually #1 for awhile early this year.

Quote from: BigSully1 on November 08, 2007, 11:52:47 AM
Can you believe that people were still selling this in the low 20's this morn? Thank you for being stupid, whoever you were.  >:D

Yep, some people don't even know how to make an earnings multiple comparison ... heck, some people don't even know what an earnings multiple is and what it means, and yet they trade stocks. They totally ignore fundamental information and trade "on the chart", "on the tape" or on gut feeling. And that's why they sold you shares in the low $20 >:D

Anyway, even though my fundamental reasoning was right on target, I'm still losing (albeit just barely) on SYX, so I'm not so sure who's stupid here ::)

But, with SYX's new fundamental information and "natural" $2 EPS expectation for 2008, I say the stock will move up to at least $30 for a 15 times earnings multiple, which would still be cheap.

I'll keep holding SYX for the long term.

Unbelievable, people are so bearish on the US consumer that they're selling SYX at 10 times earnings, even though the company has been consistently growing revenues by 20% a year and expanding its profit margins.

Once these macroeconomic fears subside, and I'm convinced that they will, SYX will have to move towards $30 a share, for a 15 times earnings multiple, and it would still be cheap there.

I'll keep holding SYX for the long term.

SYX has been doing as I expected, or perhaps even better than I expected, from a fundamental standpoint. However, I'm losing 11% in this investment, because the mood of investors got negative and they're selling shares for a cheap price, instead of buying them.

They think there will be a recession in the US. Even if they're right, the US economy has been growing say, 3% a year, on average, and SYX has been growing revenues by 20% a year. If the US economy shrinks 1% in 2008 (I don't think so), I expect SYX to still grow revenues, why not? Anyway, I have just 11% revenue CAGR expected in my valuation model.

I believe SYX is extremely cheap at this point and it should be bought, not sold. I'll keep holding SYX for the long term.

SYX had, by far, its best quarter ever in Q3 2007. Yet, the stock is still very far away from its all time high, set in October 1996 at $53 a share.

$0.47 EPS in Q3 2007 tells me SYX will earn at least $2 EPS in 2008, which means the stock is trading at just 10 times forward earnings.

If you're a long term investor and believe the US economy won't fall apart, now is a great time to invest in SYX.

Quote from: David Randolph on November 15, 2007, 08:20:24 AM
SYX had, by far, its best quarter ever in Q3 2007. Yet, the stock is still very far away from its all time high, set in October 1996 at $53 a share.

$0.47 EPS in Q3 2007 tells me SYX will earn at least $2 EPS in 2008, which means the stock is trading at just 10 times forward earnings.

If you're a long term investor and believe the US economy won't fall apart, now is a great time to invest in SYX.

I had to think about what you said and asked myself, what stocks would I be willing to hold through hard times or a recession? Unfortunately SYX was not on the list. No matter what I think SYX is worth, or will be worth at some point in the future, I'm not going to argue against the market. Sold half yesterday at small loss, and wasn't going to let the other half turn into a loss, sold the other half this morn, so basically a wash. By the way, MALL has been getting totally devastated. Unfortunately SYX never got the runup that MALL had.

QuoteI had to think about what you said and asked myself, what stocks would I be willing to hold through hard times or a recession? Unfortunately SYX was not on the list. No matter what I think SYX is worth, or will be worth at some point in the future, I'm not going to argue against the market. Sold half yesterday at small loss, and wasn't going to let the other half turn into a loss, sold the other half this morn, so basically a wash. By the way, MALL has been getting totally devastated. Unfortunately SYX never got the runup that MALL had.

I understand your reasoning and respect your decision BigSully1, even though I fully disagree with it, since I don't use macro calls to judge my investments.

Well, if you don't want SYX's shares, insiders do:

CFO bought 1,000 shares last Thursday (http://www.sec.gov/Archives/edgar/data/945114/000089968107000771/xslF345X02/edgar.xml)

I know this isn't much, but it's a start. At least he's not receiving a lot of stock options, he's buying his shares in the open market like we do.

SYX has been doing everything right from a fundamental standpoint, growing revenue at a 20% annual clip and expanding gross and net profit margins in the process, better than I expected on the revenue front. Now, the market isn't responding as expected, because investors foresee a recession in the US economy. But, as SYX's management said, retailers in general are seeing their market rise about 4% from the year ago levels, while online commerce is growing 20%. If, instead of growing, say, 3% a year, the US economy grows just 1% a year, I say that online commerce will grow not 20%, but 10% a year. This is roughly what I expect for SYX over the long term and it is enough for the company to continue expanding its net profit margin, from the current 2.6% to 5% in a couple of years time.

Technically the stock touched its slowly ascending support, it should rebound from these levels. Fundamentally I believe SYX is a stock to own for the long term and that's what I'll do.

The CFO buys, the stock goes down anyway. Valuation is very attractive, it doesn't matter, investors are selling. I believe this is all due to the general market weakness and nothing else, and, as I wrote at the new SPY's thread (http://www.3stocksonfire.org/trading/index.php?topic=10600.0), I believe this weakness will soon turn into strength.

I'll keep holding SYX for the long term.

Online retailers, or e-tailers, are doing better than expected this shopping season:

Cyber Monday online sales jump 21% (http://money.cnn.com/2007/11/27/technology/bc.apfn.holiday.onlinesa.ap/index.htm?postversion=2007112718)

As I read SYX's earnings release (http://biz.yahoo.com/bw/071107/20071107006390.html?.v=1), I see they don't say anything about the physical stores they're opening. I believe this could be a huge growth driver in the upcoming years, as the company just opens more and more stores across the US and then the World. I think there can be interesting symbioses between an e-tailer and a brick and mortar retailer. Management said things are going very well on these aspects. The company has 10 stores now, I believe. I wonder if one of you could visit one of Systemax's stores ... I'll give you the locations over the next update.

SYX trades at about 10 times earnings and EPS grew 42% from the year ago levels in Q3 2007. This is very cheap on my book. Technically the stock finally started to respond, rising 6.5% yesterday.

I'll continue holding SYX for the long term.

SYX's EPS in the 3rd quarter grew 42% from the year ago level and yet the stock trades at a forward p/e of about 10. It doesn't get much cheaper than this.

SYX's fundamental developments have been exactly as I expected ever since I first bought the stock, around $15 I believe. The only thing not right is that it should be a $30 - $40 stock, instead of $20, to be fairly valued. I believe it's just a matter of time for this to happen.

SYX closed unchanged and there weren't any news out. I'll keep holding.

1 to 5 million consumers are defaulting on their credit cards and will be unable to buy electronic goods in the upcoming years. The other 250 million consumers are enjoying lower interest rates and their appetite for shopping online keeps growing.

SIX is growing EPS 42% from the year ago levels. It trades at a trailing p/e of 13.2 and a forward p/e of less than 10. The company's growth will continue for many more years in my view. The stock is incredibly cheap, it will go higher over the long term. 

SYX is within an interesting technical pattern. We have 5 touches on its medium term ascending support and 4 touches on its descending trendline. Which way will it break?

Fundamental analysis tells me there will be a bullish breakout. We'll see what happens.

I'll keep holding SYX for the long term.

QuoteSYX is within an interesting technical pattern. We have 5 touches on its medium term ascending support and 4 touches on its descending trendline. Which way will it break?

Fundamental analysis tells me there will be a bullish breakout. We'll see what happens.

As expected, bulls, backed by positive fundamentals, won the bull/bear fight on SYX, at least over the short term. Still on the technical side I notice that SYX had volume above average on Monday, when we had just half a session.

Fundamentally I see SYX earning $2 per share in 2008 (I expect about $1.64 EPS for full year 2007) and that should put the stock in the $30 - $40 range.

I'll keep holding SYX for the long term.

Big news out for SYX, it seems they're buying a part of CompUSA for bargain prices:

• Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA (http://biz.yahoo.com/bw/080106/20080106005131.html?.v=1)
Business Wire (Sun 1:43pm)

This comes on the wheels of the following news:

CompUSA bought by Gordon Bros. Group, to close stores (http://www.marketwatch.com/news/story/compusa-bought-gordon-bros-group/story.aspx?guid=%7B3D1E7D2F%2D60CD%2D4F5A%2D93AA%2D2BA918BFCF7D%7D)

This acquisition will make SIX add www.compusa.com to www.tigerdirect.com and potentially 16 new retail stores to its existing 11 stores. The price, even though not objective, seems compelling:

«The direct costs of the acquisition will depend on the specific retail store locations that are ultimately taken over and are expected to approximate $30 million. The indirect costs of the acquisition – primarily integration and recruiting costs, legal fees, inventory purchases, and other expenses – will be incremental to the direct costs.»

My view on eCommerce is that it will be a long term winning story, but to increase profit margins, there has to be some consolidation in the sector. Systemax seems to be one of the few survivors of this battle, taking over competitors.

Technically, after a bullish breakout, the stock came down to touch support for the 6th time and test a new support, prior resistance trendline.

I wonder how the stock will react to today's news, given that investors are so negative on consumer spending going forward, but I believe that longer term this acquisition was a good move and made on the right timing in terms of the business cycle.

I'll keep holding SYX for the long term.

SYX: New 52-Wk Low @ $16.030 dn 7.87%
Wednesday, January 09, 2008 14:15ET

This is the 1st 52 WEEK LOW alert for SYX in the past 7 calendar days.

The share price for Systemax Inc (NYSE: SYX) reached a new 52-week low today, trading at $16.030, down $-1.370 (-7.87%) from its previous close of $17.400.

The Company's previous 52-week low of $16.040 was set 246 days ago on May 08, 2007.

One year ago, the Company's shares closed at $19.010. The price has declined more than 15 percent since then.

At the time of this alert, the stock had traded 216,150 shares via 1,294 trades, 13.30% below it's 20day average of 249,305 shares.

This new 52-week low currently puts the stock:

16.23% below its 20day Moving Average of $19.136
19.16% below its 50day Moving Average of $19.830
20.75% below its 100day Moving Average of $20.227

The Company last released news on January 06, 2008:

"Systemax Announces Definitive Agreement to Acquire Selected Assets and Retail Stores from CompUSA"

oversold imho, stochastics turning positive

Check out MALL also. Looks like a possible bottom. I'm considering buying back.

QuoteSYX: New 52-Wk Low @ $16.030 dn 7.87%
Wednesday, January 09, 2008 14:15ET

Yep la-onda, SYX has been all over the place on the technical side, since in mid December it made a bullish breakout, followed by the current bearish breakdown.

The stock was able to bounce from the $16 support level on volume above average, we'll see what the next few days bring.

Quote from: BigSully1 on January 09, 2008, 10:48:24 PM
Check out MALL also. Looks like a possible bottom. I'm considering buying back.

Jesus, MALL fell 68% in a couple of months ... awesome exit timing BigSully1:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43058;image)

Was there any news causing this sell-off?

Well, gross margin declined a bit in Q3 and the stock's fall started after that earnings release, but I don't see it as enough of a cause for a 68% drop, since EPS still came in above expectations.

Since then the news releases have been fairly positive, like this one for example:

• MacMall Reports Strong Thanksgiving Weekend/Cyber Monday Sales (http://biz.yahoo.com/bw/071127/20071127006228.html?.v=1)
Business Wire (Tue, Nov 27)

Considering analysts 2008 estimates, MALL is trading at 6.8 times forward earnings:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43059;image)

Investors are extremely negative on the US consumer to be pricing these online retailers at such low valuations. I'm not going to play macroeconomist here (they're wrong most of the times anyway), and yes, I find MALL very attractive at this ridiculously low $94 M market cap.

Going back to SYX, which recently acquired part of compUSA (http://biz.yahoo.com/ap/080106/compusa_systemax.html?.v=2). I enjoy this consolidation in the sector ... somebody will have to make money selling computers over the internet ... "no, wait a minute, nobody will ever buy a new computer ever again" hahahaha

Trying to get serious, because the loss on the Main is serious. SYX is fundamentally attractive, but MALL seems even more attractive using a valuation and growth rate comparison.

I just don't feel like throwing more money into this sector ... good luck BigSully1 (not that you need it) :)

I'll hold SYX.

Retailers are out of favor in the market now, because everybody is pessimistic on the US consumption outlook. It makes sense to think that a good deal of the past consumption was made using credit and with the current overload of debt it will be difficult for consumption to expand meaningfully. It may even contract by 1 or 2 percentage points in 2008.

There's nothing new or dramatic about this, the US economy had 13 recessions in the past 100 years, and it always came out stronger.

Anyway, the number of people using the internet to purchase their computers and other electronics will continue to expand, in my view. Perhaps e-commerce won't grow 18% a year going forward, like it did in 2007 vs 2006, but I doubt that it will grow at single digits in 2008.

Say there's going to be 10% growth in e-commerce in 2008.

With 18% e-commerce growth, SYX grew EPS by 42%. So I think it is legitimate to think that with 10% e-commerce growth SYX's EPS will probably rise by about 23% in 2008. This would mean 2008 EPS of about $1.98 and the forward earnings multiple would then be 8.

In my view the growth rate is 23% and the p/e is 8, which is very attractive.

Concerning risk, the fact that SYX has revenue of about $2.8 B in 2007 and its net profit margin is very low (in the 2 to 3% range) tells me that EPS doesn't change a lot due to changes in the revenue level. In other words, I believe that if SYX sells less, its costs will decline almost in the same proportion, so EPS won't be all that affected. With precise cost cutting measures EPS may even rise even if revenues fall (which I don't think it will happen).

The current crisis gave SYX the opportunity to buy CompUSA assets at what seems to be a deep discount price.

As for the chart, as I didn't put much emphasis when the stock had a bullish breakout, I'm not going to be overly concerned with the current weakness either.

I'll continue holding SYX.

SYX closed positive yesterday ... I'll keep the faith.

Strong day for MALL. They might just be pegging it to $7.50 for "max pain"

Wow, MALL is really fired up today. Just took some off the table at $9.00.

Quote from: BigSully1 on January 18, 2008, 12:27:09 PM
Wow, MALL is really fired up today. Just took some off the table at $9.00.

Indeed Sully, MALL was just too cheap. Unfortunately it seems it will need to work some more on that chart ... perhaps a double bottom around $7? So far and from a technical standpoint it looks like just a bounce towards resistance, prior support:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43219;image)

I would have bought MALL if I had some more cash available ... good luck on your trades :)

As I see SYX, it is as cheap as MALL, selling at 7.3 times my 2008 EPS estimate of $2. I know, I know, you may say "but the economy is terrible, the market is crashing down, consumption will fall, etc", but my take is that e-commerce will still grow, probably not at a 18-25% rate like in the past few years, but say, something like 5-10%?

This will be more than enough for SYX to achieve $2 EPS in 2008.

I'll keep holding SYX for the long term, despite the horrible short term setback.

Quote from: David Randolph on January 22, 2008, 07:26:26 AM

Quote from: BigSully1 on January 18, 2008, 12:27:09 PM
Wow, MALL is really fired up today. Just took some off the table at $9.00.

Indeed Sully, MALL was just too cheap. Unfortunately it seems it will need to work some more on that chart ... perhaps a double bottom around $7? So far and from a technical standpoint it looks like just a bounce towards resistance, prior support:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43219;image)

I would have bought MALL if I had some more cash available ... good luck on your trades :)

As I see SYX, it is as cheap as MALL, selling at 7.3 times my 2008 EPS estimate of $2. I know, I know, you may say "but the economy is terrible, the market is crashing down, consumption will fall, etc", but my take is that e-commerce will still grow, probably not at a 18-25% rate like in the past few years, but say, something like 5-10%?

This will be more than enough for SYX to achieve $2 EPS in 2008.

I'll keep holding SYX for the long term, despite the horrible short term setback.

Yep, MALL is now trading right at that $9.65 resistance level, I should have held to there. Whoops! Maybe SYX will soon take off for you guys very soon.

QuoteYep, MALL is now trading right at that $9.65 resistance level, I should have held to there. Whoops! Maybe SYX will soon take off for you guys very soon.

Yep, we still have some more work to do around the $16 resistance level, but I remain confident that the breakdown was a trap and not a reliable signal that SYX will keep going down. I mean, this company sells $3 B a year and its profit margin has been steadily rising, how much lower can it go?

I'll hold SYX.

What do you guys think of Mall back down around 7?  I just picked some up at 7.07.

I'm still waiting. It will probably go lower yet, maybe Monday.

fyi:
Systemax stock may be hit by rebate probe-Barron's
Sun Jan 27, 2008 5:59pm EST

NEW YORK, Jan 27 (Reuters) - Shares of Systemax Inc (SYX.N: Quote, Profile, Research), a seller of computer hardware, electronic and industrial products, may dip in response to inquiries into the rebate-accounting practices of its TigerDirect retailer, according to Barron's.

Widespread complaints, customer lawsuits and now an investigation by Florida's attorney general allege that TigerDirect fails to pass on manufacturer's rebates to customers, Barron's said.

If these allegations pan out, then the end of that practice could hurt Systemax's profits, the financial weekly said in its Jan. 28 edition. (Reporting by Lisa Lee; Editing by Braden Reddall)

David,
Any thoughts to this article or movement in SYX today?

Tiger Direct has been ripping off its customers for years in shamelessly refusing to honor rebates. Google 'Tiger Direct Rebate Complaints' to see the vast number of disgruntled victims who posted their horrible experiences. I do not believe in investing in dishonest companies that have a disdainful attitude towards its customer base. David, please liquidate this position on moral grounds if for no other reason.

Quote from: das317 on January 28, 2008, 02:26:24 PM
David,
Any thoughts to this article or movement in SYX today?

This is the complete article from Barrons:

Can This Tiger Keep Roaring? (http://online.barrons.com/article/SB120131705411519063.html?mod=yahoobarrons&ru=yahoo&page=1)    
Monday, January 28, 2008

I didn't write anything about it yesterday because when I saw the article the market was already open, but mainly because this is an old story. StockLemon issued exactly the same warning one year ago:

Stocklemon Reports on Systemax (NYSE:SYX) Part II (http://www.citronresearch.com/index.php/2007/01/17/stocklemon-reports-on-systemax-nysesyx-part-ii/#more-5)
Posted in Citron Reports by Stocklemon on the January 17th, 2007

At the time we've analyzed the situation thoroughly and it appeared to me that the "rebates" issue was much less serious than it was being painted. SYX replied everybody's complaints, replied Citron Research and the stock went up and down but I guess the issue was forgotten. I never thought Barrons would turn an old story into a "new" one and make the stock dive 13.3% to an even cheaper territory.

QuoteTiger Direct has been ripping off its customers for years in shamelessly refusing to honor rebates. Google 'Tiger Direct Rebate Complaints' to see the vast number of disgruntled victims who posted their horrible experiences.

You can do the same for Wal Mart (http://www.google.pt/search?hl=pt-PT&q=wal+mart+complaints&btnG=Pesquisa+do+Google&meta=) or McDonalds (http://www.google.pt/search?hl=pt-PT&q=mcdonalds+complaints&btnG=Pesquisar&meta=) and get to the same easy and erroneous conclusion.

QuoteI do not believe in investing in dishonest companies that have a disdainful attitude towards its customer base.

Me either. But who said SYX is dishonest and have a disdainful attitude towards its clients?

Barrons said it. You said it. But the costumers themselves didn't, they seem pretty happy:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=43310;image)

TigerDirect.com Customer Reviews (http://www.bizrate.com/ratings_guide/cust_reviews__mid--23939.html)

Tiger's Costumer service responds to all valid critics on several websites. Of course, they don't reply to shorts and bashers of all kind, who are not complaining because they had a bad buying experience, but because they want the stock to go down:

Tiger Direct Customer Reviews (http://www.resellerratings.com/store/Tiger_Direct)

QuoteDavid, please liquidate this position on moral grounds if for no other reason.

On moral and patriotic grounds (even though I'm not an American) I'm not going to sell SYX trading at 6.7 times earnings!!! Much less so because a magazine comes up with an old and biased story.

I see almost all costumers happy with TigerDirect and that wouldn't be the case if the allegations were true. Moreover, if a 2.1% net profit margin is high ... I don't know what would be low. Perhaps all online retailers must lose money, or else their business is a fraud ???

Now, the insidious shorts are using all their weapons to take this marvelous company down and perhaps they'll succeed over the short term, which is quite sad.

Longer term, SYX sells too much and insiders own too much of the company (why would they want to inflate earnings since they don't dilute shareholder's value?) for it to be down for long. If SYX wanted to inflate earnings, all they had to do was shut down their ProfitCenter software division, which loses a lot every quarter. That would be easy over the short term. But no, SYX's management is creating long term value, yet that is not reflected by the share price because of the shorts campaign and the general market conditions.

I'll continue holding SYX for the long term.

SYX looks hopeless here :-\

Capricho and other bears on this stock were right, I was dead wrong.

I've been estimating that SYX will earn $2 per share in 2008, but I'm not so sure anymore, the market probably knows something that I don't. People believe the American consumer is going to fall of a cliff.

I've just noticed www.tigerdirect.com now also sells in the UK, Germany and France. I guess online retailers are adapting to a new World, one that isn't US-centric. I have this firm believe that the rest of the World will pick up the slack from the US consumer, as domestic demand in other countries rises (especially in the BRIC countries, where the savings rate is very high).

SYX is my "contrarian play" and I'm paying a big price for going against the crowd. But I mean, SYX sells about $2.8 B a year and the market cap is just $436 M. The earnings multiple is 6 or something (even though some people question the way earnings are achieved - I disagree with those people).

Can SYX's earnings multiple go to 3 or 4? I guess everything is possible. But it is also possible and far more likely in my view that a couple of years down the road the p/e will be more like 20.

The setback in SYX is absolutely horrible, but I feel it's too late to sell now and I love the business, so I'll keep holding, just like business owners don't close doors and go away because there's a bear market.

Lets see how much this moves MALL

Source: PC Mall, Inc.


PC Mall Reports Record Fourth Quarter Results
Thursday February 7, 9:00 am ET


TORRANCE, Calif.--(BUSINESS WIRE)--PC Mall, Inc. (NASDAQ:MALL - News):
Fourth Quarter Highlights:

-- Consolidated net sales for the quarter were a record $408.0 million, up 38% year-over-year. 
-- Commercial net sales for the quarter increased 42% year-over-year. 
-- Public sector net sales for the quarter increased 37% year-over-year. 
-- Consumer net sales for the quarter increased 21% year-over-year. 
-- Gross profit for the quarter was a record $47.9 million, up 41% year-over-year. 
-- Operating profit for the quarter was a record $8.7 million, up 131% year-over-year. 
-- Operating profit margin for the quarter was 2.1%, up 62% year-over-year. 
-- Net income for the quarter was $4.6 million, up 169% year-over-year. 
-- Diluted EPS for the quarter was $0.32 per share, up 146% year-over-year. 


PC Mall, Inc. (NASDAQ:MALL - News) today reported record fourth quarter sales, gross profit, and operating profit, resulting in diluted earnings per share of $0.32 in Q4 2007 compared with $0.13 for Q4 2006. Net income for Q4 2007 was $4.6 million, an increase of $2.9 million or 169% from Q4 2006. Results in the prior year include an after-tax charge of approximately $1.0 million related to a lawsuit settlement. Consolidated net sales for Q4 2007 were $408.0 million, an increase of $112.7 million or 38% from consolidated net sales of $295.3 million in Q4 2006.

Frank Khulusi, Chairman, President and CEO of PC Mall, Inc., said, "Once again, we are very pleased to report another record quarter for PC Mall. Our fourth quarter 2007 net sales of over $408 million represents the largest revenue quarter ever for our Company, and our fourth quarter 2007 earnings per share of $0.32 represents an increase of 146% over the fourth quarter of 2006."

Khulusi continued, "On the heels of completing our acquisition of SARCOM in September 2007, we worked efficiently and expeditiously to begin the integration of SARCOM with PC Mall, and continued to drive our focus on sales growth and profitability. SARCOM contributed approximately $0.04 per share to our EPS in Q4 2007. As compared to the rest of the business, SARCOM's business model is more project oriented, which may result in a greater degree of variability in its results on a quarterly basis."

Q4 2007 consolidated net sales were $408.0 million compared to $295.3 million in Q4 2006, an increase of $112.7 million or 38%. Core business (which excludes OnSale.com) net sales for Q4 2007 were $402.7 million compared with $293.5 million in Q4 2006, an increase of 37%. Commercial net sales grew 42% to $283.9 million in Q4 2007 compared to Q4 2006, primarily due to $59 million of SARCOM's sales during Q4 2007 and increases in our SMB sales which resulted primarily from increased account executive productivity. SARCOM was acquired on September 17, 2007. Public sector sales increased by 37% to $45.4 million in Q4 2007 compared to Q4 2006, primarily due to several large sales in the fourth quarter of 2007 under new contracts won during the current year. Consumer net sales increased by 21% to $73.4 million in Q4 2007 compared to the same quarter last year primarily due to increased sales of Apple products, driven by increased Apple demand in the marketplace and our aggressive promotional strategy. OnSale.com net sales were $5.3 million in Q4 2007, an increase of 189% from Q4 2006, which we believe resulted primarily from our efficient marketing and advertising efforts and our aggressive pricing strategy to increase OnSale.com's market share.

Consolidated gross profit in Q4 2007 increased to $47.9 million compared to $33.9 million in Q4 2006 primarily due to the increase in sales discussed above. Consolidated gross profit margin increased to 11.7% in Q4 2007 from 11.5% in Q4 2006. The increase in gross profit margin resulted primarily from higher gross margins achieved by our new SARCOM business, partially offset by a decrease in gross margin for our Core business excluding SARCOM which resulted primarily from an aggressive consumer pricing strategy and promotional offers. Consolidated gross profit margin for Q4 2007 also includes the effect of a year-over-year increase in certain federal government sales at lower gross margins. Other factors which may cause our gross profit margin to vary in future periods include the continuation of key vendor support programs, including price protections, rebates and return policies, our product or customer mix, product acquisition and shipping costs, competition and other factors. We expect that there will be fluctuations in our quarterly operating profit margin, in part as a result of probable fluctuations in sales and the various components of gross margin, and other factors.

Consolidated SG&A expenses as a percent of net sales declined to 9.6% in Q4 2007 compared to 10.2% in Q4 2006. SG&A expenses in the prior year included approximately $1.7 million of expenses related to a lawsuit settlement. Further, SG&A expenses as a percentage of net sales are higher for our new SARCOM business, but were offset by decreases in SG&A as a percentage of sales due to increased account executive productivity and operating leverage in other areas of our business.

Commercial and public sector account executive headcount included in SG&A, excluding SARCOM, at the end of Q4 2007 amounted to 644 employees, up 70 account executives from Q4 2006 and up 75 account executives from Q3 2007. Total account executives, including those focused on commercial, public sector and consumer customers, excluding SARCOM, numbered 738 at the end of Q4 2007, up 72 account executives from Q4 2006, and up 73 account executives from Q3 2007. The increase in account executives was primarily driven by additional hires at the end of the quarter in our Canadian call center supporting our SMB business. Average tenure for a commercial and public sector account executive at the end of Q4 2007 was 36 months, with 10% of the commercial and public sector workforce in training, 31% with less than one year experience and 46% with less than two years experience.


We had cash and cash equivalents of $6.6 million at December 31, 2007 compared to $5.8 million at December 31, 2006. Accounts receivable at December 31, 2007 of $159.4 million increased by $45.2 million from December 31, 2006, primarily due to the acquisition of SARCOM as well as increased receivables from our government customers. Our inventory of $64.5 million at December 31, 2007 represents an increase of $13.2 million from December 31, 2006. Accounts payable increased by $34.9 million from December 31, 2006, primarily due to timing of vendor payables and the addition of payables of SARCOM. Total outstanding borrowings under our line of credit and term note increased by $24.4 million net to $59.1 million at December 31, 2007 from December 31, 2006, primarily due to financing related to the SARCOM acquisition.

MALL is firmly above the $10.00 resistance now. +29%

I feel like crying over SYX's loss, which now amounts to 46.7% :'(

It doesn't pay to be a contrarian in individual stocks, it hurts to go against the trend and the herd mentality.

People believe US consumption will go down in 2008. I disagree, I think it will be up 0.5%-1%. And with the US consumption up by this much, online spending should be up 5-10%. And with online spending up by this much, SYX's revenues would be up 15% and SYX's EPS would be up 25% to $1.9 in 2008.

This would put SYX at 6.2 times earnings while it grows them by 25%.

I firmly believe in this macroeconomic scenario and the continuous growth of online spending, much faster than traditional consumption, therefore I find this stock extremely attractive at these prices.

The market doesn't share my views and that's hurting. But if I'm right I expect to be paid handsomely. If I'm wrong, if there's a deep economic recession and SYX turns its profits into losses, I'll lose.

I see the pessimistic scenario as almost completely priced in already.

I should have been much more patient before buying and should have understand that multiples can contract to the 5 area when investors are really pessimistic about the outlook. 10 times EPS isn't cheap enough. "Wait for 5", is my lesson.

But I'm not willing to correct a mistake with what seems to be another mistake, which would be selling now at this deep discount price.

I'll patiently keep holding SYX.

Just registering that SYX closed 2.4% below its support level of $11.55, which isn't enough of a movement to consider this a valid technical breakdown.

Anyway, no doubt the medium term trend is bearish.

I wonder if I shouldn't go back to my old money management rule of never letting a loss exceed 2% of total equity, or about 32% for an individual holding. This way perhaps I would free myself of the losers and focus on finding new and more promising opportunities.

This is something to think about in the future but not right now. Right now the best thing to do is to just stand still and keep holding all stocks one believes in.

The Main Portfolio is now just a bit shy of the S&P 500 and better than the Russel 2000 in 2008. Even with all my mistakes. And my take is, with the general market rising from this point, the Main will outperform, and the most depressed stocks will probably rally the most in the upcoming months.

We'll see in the next few days if SYX's break was a real one or a fake. I'll keep holding SYX.

QuoteJust registering that SYX closed 2.4% below its support level of $11.55, which isn't enough of a movement to consider this a valid technical breakdown.

We'll see in the next few days if SYX's break was a real one or a fake.

SYX was just one small step shy of closing back above the $11.55 prior support, now resistance level. Volume was above average yesterday.

I felt some more confidence yesterday in consumer related stocks, as the market reacted positively to poor consumer sentiment data. But today the bears are coming back with a vengeance, as the general market is set to open sharply lower.

We're not out of the woods yet, but I think this is just the bottoming process running its course. 6 months down the road we'll be at all time highs and sellers at this point will be scratching their heads, thinking "how did I sell that stock for 6 times earnings?"

At least this is my expectation at this point. I'll keep holding SYX.

SYX looks perfectly bearish from a technical standpoint. I think this has happened because most people have very negative expectations for US consumption in 2008.

If I had incorporated the macro-economic outlook in my company specific analysis I probably would have avoided SYX. I didn't and so the Main is losing 53% on this holding, which is quite a lot in a short period of time.

I'm still unsure if a potential decline in sales (which I don't think it will happen, because the way I see things, online shopping will continue to grow in 2008, probably at a more moderate single digits pace, but still growth) will hurt SYX's profitability or not. I say this because SYX sometimes reports lower sales and higher profits or higher sales and lower profits. I believe the company's profit margins are more due to their internal costs controls than the level of sales.

Anyway, I'm glad that we'll know more tomorrow when the company reports 4th quarter results:

• Systemax Inc. Schedules Earnings Conference Call and Webcast Announcing 2007 Fourth Quarter and Full Year Results (http://biz.yahoo.com/bw/080303/20080303006034.html?.v=1)
Business Wire (Mon 4:31pm)

There aren't any analysts following the stock, so no estimates to beat or miss. I say that anything more than the $0.23 EPS SYX reported in 4th quarter 2006 would be great, given the stock's price ...

I'll hold SYX through earnings.

I have a big book here, which is this:

Contrarian Investment Strategies: The Next Generation (http://www.amazon.com/Contrarian-Investment-Strategies-Next-Generation/dp/0684813505/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1204719117&sr=8-1), by David Dreman

The author shares an extensive study covering thousands of stocks for several decades which concludes that low p/e stocks are the best long term category of stocks. He defends this happens because analysts and investors are many times wrong in their predictions of the future and positive surprises is what propels stocks to move higher.

SYX will disclose 4th quarter results today after the close. Obviously everyone is pessimistic about SYX's future, why else would the stock be trading at just 7 times 2007 estimated EPS? (I'm expecting $0.30 EPS in the 4th quarter - for a full year EPS of $1.51, which would still be the worst quarterly result of 2007).

There's room for positive surprises in SYX, since the stock is already discounting a very bleak scenario for 2008 and beyond.

I'll keep holding SYX!

Systemax Inc. Reschedules Earnings Conference Call and Webcast Announcing 2007 Fourth Quarter and Full Year Results to Monday, March 10, 2008
Wednesday March 5, 3:37 pm ET


PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Systemax Inc. (NYSE:SYX), announced today that it has rescheduled its conference call that was originally scheduled for today at 5:00 p.m. until Monday, March 10 at 5:00 p.m. EST to discuss the company's results for the fourth quarter and full year of 2007, which they will be releasing at the close of market on March 10. The reason for rescheduling the call is to allow for additional time to complete the consolidation and review of its worldwide financial results. To participate in the call, interested parties can dial 888-713-4213 (domestic) and 617- 213-4865 (international), access code: 44070001 to register ten minutes before the call is scheduled to begin. This call is being webcast by CCBN and can be accessed at Systemax's web site at www.systemax.com.
ADVERTISEMENT


If you are unable to listen to the live presentation, a telephone replay will be available from March 10, 2008 at 7:00 pm ET until the close of business on April 10, 2008 and can be accessed by dialing 888-286-8010 (domestic) and 617-801-6888 (international) and entering access code: 45587577.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

About Systemax Inc.

Systemax Inc. (www.systemax.com), a Fortune 1000 company, sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. The primary brands are TigerDirect, CompUSA, Misco and Global Industrial. It also manufactures and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based, on-demand application for multichannel direct marketing companies.



Contact:
Systemax Inc.
Donna Gehnrich, 516-608-7020
[email protected]

--------------------------------------------------------------------------------

Do we interpret this positively or negatively? I fear the worst,based on market sentiment.

Quote from: soxguy on March 05, 2008, 06:54:46 PM
Do we interpret this positively or negatively? I fear the worst,based on market sentiment.

And you were right soxguy.

Considering yesterday's news ...

Systemax Inc. Reschedules Earnings Conference Call and Webcast Announcing 2007 Fourth Quarter and Full Year Results to Monday, March 10, 2008 (http://biz.yahoo.com/bw/080305/20080305006152.html?.v=1)
Business Wire(Wed, Mar 5)

... it would be mostly irrelevant if we were talking about any other company, but because of SYX's past, this reminded investors of SYX's poor internal controls and the auditors remarks on this issue.

I mean, the following justification for changing the earnings release date is weak:

«The reason for rescheduling the call is to allow for additional time to complete the consolidation and review of its worldwide financial results.»

So, they were going to release earnings without the completion of this consolidation and review? Didn't they know this before announcing the earnings date?

I'm pretty sure that 4th quarter earnings will be good and SYX is now trading at about 6 times 2007 EPS. Probably there will be a pop when the company reports earnings next Monday (the pop would be on Tuesday).

The problem is people won't trust SYX's numbers.

And investors are wary about the future of this business, they think US consumption will go down sharply in the quarters to come and these online retailers will return to losses, therefore considering the very low p/e would be misleading, if bears are right.

I admit I was going to just dump SYX today, not without feeling very sorry for taking so long to see the disgrace, but since the earnings report will be on Monday after the close and I'm pretty sure numbers will look great on paper, I'll just hold this one for a few more days, hoping to sell a bit higher than what it is now.

I'll HOLD SYX for now.

QuoteI'm pretty sure that 4th quarter earnings will be good and SYX is now trading at about 6 times 2007 EPS. Probably there will be a pop when the company reports earnings next Monday (the pop would be on Tuesday).

QuoteI admit I was going to just dump SYX today, not without feeling very sorry for taking so long to see the disgrace, but since the earnings report will be on Monday after the close and I'm pretty sure numbers will look great on paper, I'll just hold this one for a few more days, hoping to sell a bit higher than what it is now.

SYX's results will be out today after the close and I expect them to be fairly good. I'll probably be a seller on the good news, respecting the technical trend and what that shows in terms of investors expectations about the future. I was exceptionally slow to accept the loss on this stock (and others) and obviously I'll have to pay a big price.

I'll hold SYX until tomorrow.

Quote from: David Randolph on March 10, 2008, 09:14:03 AM

QuoteI'm pretty sure that 4th quarter earnings will be good and SYX is now trading at about 6 times 2007 EPS. Probably there will be a pop when the company reports earnings next Monday (the pop would be on Tuesday).

QuoteI admit I was going to just dump SYX today, not without feeling very sorry for taking so long to see the disgrace, but since the earnings report will be on Monday after the close and I'm pretty sure numbers will look great on paper, I'll just hold this one for a few more days, hoping to sell a bit higher than what it is now.

SYX's results will be out today after the close and I expect them to be fairly good. I'll probably be a seller on the good news, respecting the technical trend and what that shows in terms of investors expectations about the future. I was exceptionally slow to accept the loss on this stock (and others) and obviously I'll have to pay a big price.

I'll hold SYX until tomorrow.

I decided to take a gamble on it and just bought below $9.20. Hoping to sell around 12, depending. I just hope they don't postpone again or will have to dump immediately.

Looks good AH so far

WOW! If this don't move the stock bigtime, nothing will.

Systemax Reports All-Time Record Results for Fourth Quarter and Full Year 2007; Announces Special $1.00 Per Share Dividend
Monday March 10, 4:02 pm ET 
Fourth Quarter Highlights:
-- Sales: $769 million, up 19% - all time record
-- Operating Income: $28 million, up 149% - all time record
-- Net Income: $ 24 million, up 201% - all time record
-- Diluted Earnings Per Share: $.64 vs. $.22, up 191% - all time record
Full Year Highlights:
-- Sales: $2.8 billion, up 19% - all time record
-- Operating Income: $95.5 million, up 54% - all time record
-- Net Income: $69.5 million, up 54% - all time record
-- Diluted Earnings Per Share: $1.84 vs. $1.22, up 51% - all time record


PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Systemax Inc. (NYSE:SYX - News) today announced its financial results for the fourth quarter and full year ended December 31, 2007.
ADVERTISEMENT


Net sales for the quarter increased 19% to $769 million compared to $648 million in the fourth quarter of 2006. Sales of technology products (computers, computer supplies and consumer electronics) grew by 19% and sales of industrial products grew by 13%. Gross margin for the quarter improved to 15.5% from 12.9% last year. Operating income increased 149% to $28.0 million compared to $11.3 million last year. Operating margin improved to 3.6% from 1.7% last year. Net income increased 201% to $24 million, or $.64 per diluted share, compared to $8.0 million, or $.22 per diluted share, last year. Included in net income during 2007 is a net gain of $4.2 million or $.11 per diluted share related to non-cash adjustments of valuation allowances for deferred tax assets.

Net sales for the full year ended December 31, 2007 increased 19% to $2.8 billion compared to $2.3 billion during 2006. Gross margin improved to 15.3% during 2007 compared to 14.6% last year. Operating income increased 54% to $95.5 million from $61.9 million last year. Operating margin improved to 3.4% from 2.6% last year. Net income increased 54% to $69.5 million, or $1.84 per diluted share, compared to $45.1 million, or $1.22 per diluted share, last year. In addition to the aforementioned gain related to deferred tax assets, included in net income during 2007 (in the first quarter) is an after tax gain of approximately $1.5 million or $.04 per diluted share related to a favorable lawsuit settlement. Included in net income during 2006 (in the first quarter) is an after tax gain of $4.3 million, or $.12 per diluted share from the sale of a warehouse facility.

Richard Leeds, Chairman and Chief Executive Officer, said: "Our all-time record fourth quarter 2007 results – highlighted by our 19% growth in sales, improved gross margin and 149% growth in operating income – is the result of continued execution of our growth plan and demonstrates the leverage in our business model. Our consolidated gross margin has improved significantly and consistently over the past year, increasing from 12.9% in the fourth quarter of 2006 to 14.3% in the first quarter of 2007, 15.3% in the second quarter, 16.1% in the third quarter and 15.5% in the fourth quarter. Our selling, general and administrative expenses have remained relatively flat as a percentage of sales, despite significantly increased consulting and staffing costs associated with the requirements of Section 404 of the Sarbanes-Oxley Act.

"As a result of our strong 2007 financial performance and our strong and liquid balance sheet, I am pleased to announce that our Board of Directors has declared a special dividend for our shareholders. This dividend was declared on March 3, 2008 by our Board to be $1.00 per share and will be paid on April 2, 2008 to shareholders of record on March 21, 2008."

Gilbert Fiorentino, President of Systemax's Technology Products segment, noted: "Strong sales growth in both the North American and European markets continued in the fourth quarter. North American technology product sales grew 18%, driven by growth in all sales channels. European sales grew 21% overall, 11% excluding the effect of exchange rate changes, driven primarily by growth in internet sales and public sector customers. We also have substantially completed the CompUSA acquisition; the new, improved CompUSA.com has been operational since mid January and we have begun to reopen the new and improved CompUSA retail stores. We are excited by the three strong brands that we now primarily operate under – TigerDirect and CompUSA in North America and Misco in Europe – and by the strong performance across our multiple sales channels – business to business, business to consumer, retail and television shopping."

Richard Leeds, commenting on other operations, noted that "in the industrial products segment, sales grew 13% in the fourth quarter, driven primarily by increased internet sales and continuing competitive advantages due to our worldwide sourcing and aggressive pricing strategies. In our ProfitCenter Software hosted application business, we have continued product development and are poised to bring several household name customers live in the coming months."

Larry Reinhold, Chief Financial Officer, noted that the Company's overall financial condition remains solid as evidenced by its working capital of $273 million, including cash and equivalents of $128 million. Cash flow from operations for the quarter was approximately $33.5 million and for the full year we generated cash from operations of approximately $97 million while investing $8 million in capital expenditures. This strong cash generation enabled our $37 million special dividend for our shareholders during 2007, and our current strong and liquid balance sheet enables another special dividend of $1.00 per share this year. Days sales outstanding were 24 days at December 29, 2007, and inventory turned at an annual rate of approximately 10 times during the fourth quarter. Our effective tax rate was 30.7% during 2007, down significantly from last year due primarily to the aforementioned gain related to deferred tax assets.

Systemax Inc. (www.systemax.com), a Fortune 1000 company, sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. The primary brands are TigerDirect, CompUSA, Misco and Global Industrial. It also manufactures and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based, on-demand application for multichannel direct marketing companies.

SYSTEMAX INC.

Condensed Consolidated Statements of Operations – Unaudited 
(In thousands, except per share amounts) 
   
    Quarter Ended     Year Ended 
  December 31*,   December 31*, 
  2007     2006   2007     2006 
Net sales   $  769,334    $  647,974    $  2,779,875    $  2,345,165   
Cost of sales      649,678         564,702         2,353,574         2,002,246     
Gross profit    119,656     83,272     426,301     342,919   
Gross margin    15.5  %    12.9  %    15.3  %    14.6  % 
Selling, general and administrative expenses      91,564         71,985         330,797         281,015     
Operating income    28,092     11,287     95,504     61,904   
Operating margin      3.6  %      1.7  %      3.4  %      2.6  % 
Interest and other (income) expense, net      (1,708  )      (680  )      (4,519  )      (7,791  ) 
Income before income taxes    29,800     11,967     100,023     69,695   
Provision for income taxes    5,620     3,934     30,542     24,548   
Effective tax rate      18.9  %      32.9  %      30.5  %      35.2  % 
Net income   $  24,180      $  8,033      $  69,481      $  45,147     
Net margin    3.1  %    1.2  %    2.5  %    1.9  % 
           
Net income per common share:         
Basic   $  .67    $  .23    $  1.93    $  1.29   
Diluted   $  .64    $  .22    $  1.84    $  1.22   
           
Weighted average common and
common equivalent shares:
         
Basic    36,089     35,177     35,968     34,960   
Diluted    37,753     37,258     37,688     36,881   
SYSTEMAX INC.

Condensed Consolidated Balance Sheets 
(In thousands) 
   
    December 31*,

  2007     2006 
Current assets:     
Cash and cash equivalents   $  128,021   $  86,964 
Accounts receivable, net    197,397    164,615 
Inventories    250,222    233,136 
Prepaid expenses and other current assets      29,949      34,646 
Total current assets    605,589    519,361 
Property, plant and equipment, net    48,480    48,586 
Deferred income taxes and other assets      19,802      16,214 
Total assets   $  673,871   $  584,161 
       
Current liabilities:     
Short-term debt   $  449   $  12,788 
Accounts payable and accrued expenses      331,687      277,174 
Total current liabilities    332,136    289,962 
Long-term debt    254    483 
Other liabilities    5,646    4,226 
       
Shareholders' equity      335,835      289,490 
Total liabilities and shareholders' equity   $  673,871   $  584,161 
*
    Systemax manages its business and reports using a 52-53 week fiscal year that ends at midnight on the Saturday closest to December 31. For clarity of presentation, fiscal years and quarters are described as if they ended on the last day of the respective calendar month. The actual fiscal year and quarter ended on December 29, 2007. Both 2007 and 2006 included 52 weeks and the fourth quarters of both 2007 and 2006 included 13 weeks. 


Forward-Looking Statements

This press release contains forward-looking statements about the Company's performance. These statements are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Actual results may differ materially from results expressed or implied in these statements as the result of risks, uncertainties and other factors including, but not limited to: (a) unanticipated variations in sales volume, (b) economic conditions and exchange rates, (c) actions by competitors, (d) the continuation of key vendor relationships, (e) the ability to maintain satisfactory loan agreements with lenders, (f) risks associated with the delivery of merchandise to customers utilizing common carriers, (g) the operation of the Company's management information systems, and (h) unanticipated legal and administrative proceedings. Please refer to "Risk Factors" and the Forward Looking Statements sections contained in the Company's Form 10-K for a more detailed explanation of the inherent limitations in such forward-looking statements.



Contact:
Systemax Inc.
Investors:
Donna Gehnrich, 516-608-7000

--------------------------------------------------------------------------------

congrats everyone...up to $12 after hours.  Unfortunately this is one I didn't own before earnings.  ???

SYX results were fantastic, double of what even I expected:

Systemax Reports All-Time Record Results for Fourth Quarter and Full Year 2007; Announces Special $1.00 Per Share Dividend (http://biz.yahoo.com/bw/080310/20080310006316.html?.v=1)
Business Wire(Mon 4:02pm)

Another $1 per share dividend, showing SYX's cash is for real (not that I doubted it).

There were some special effects juicing the 4th quarter (like a lower effective tax rate), but still, results were really outstanding.

I was going to sell SYX today on the higher opening (SYX is opening up more than 30%), but considering what I've done with SILC, for example, and the ex-dividend date is just 10 days or so away, I'll hold SYX a few more days.

It's really a shame that I'm almost obligated to sell SYX despite the great fundamentals, because after what happened with MALL ... it's clear that investors see these electronic retail businesses losing money in the future and they may very well be right, who knows how deep the US economic recession will be in terms of consumer spending?

For now I'll hold SYX, I think it will be possible to sell it at the 50 days SMA, currently at $14.12 (if it goes there today, the instruction is to sell. If not, just hold a few more days).

David, is there a plan to buy PAL back now that it closed the gap at $6.76? Sorry to ask here since I could not find PAL thread...

Never mind, I just saw your email ...

Quote from: realcoolhead on March 11, 2008, 09:46:25 AM
David, is there a plan to buy PAL back now that it closed the gap at $6.76? Sorry to ask here since I could not find PAL thread...

Quote from: David Randolph on March 11, 2008, 09:08:50 AM
SYX results were fantastic, double of what even I expected.

...

It's really a shame that I'm almost obligated to sell SYX despite the great fundamentals, because after what happened with MALL ... it's clear that investors see these electronic retail businesses losing money in the future and they may very well be right, who knows how deep the US economic recession will be in terms of consumer spending?

While it is clear that PPS is more about how investors see the future of a business , I believe that even in a recession, online retailers will be strong...at least more so than retailers who have to pay rent at mall or on some property.  Those are the retail companies that are going to fold first, and if anything, when they do close up shop people will have to do their shopping online. 

Personally, I've been buying more and more online.  Shoes, electronics, clothes...why go to crowded malls when you can just do it from home?

Quote from: realcoolhead on March 11, 2008, 09:46:25 AM
David, is there a plan to buy PAL back now that it closed the gap at $6.76? Sorry to ask here since I could not find PAL thread...

Hi realcoolhead, PAL's thread is at the Watch List message board. I missed recommending the stock at the ideal level. Now I'll wait for the 4th quarter results (which I think will show an ugly loss) and maybe get a second chance of buying at support (or not at all, depending on the information).

QuoteWhile it is clear that PPS is more about how investors see the future of a business , I believe that even in a recession, online retailers will be strong...at least more so than retailers who have to pay rent at mall or on some property.  Those are the retail companies that are going to fold first, and if anything, when they do close up shop people will have to do their shopping online.

Personally, I've been buying more and more online.  Shoes, electronics, clothes...why go to crowded malls when you can just do it from home?

Absolutely dnickers, I fully agree with you. This is why it's so hard to understand this sector's dirty cheap valuations. I'm unsure if this is good (stocks are cheap, so they'll go up) or bad (stocks are cheap, very nasty results coming). I feel very embarrassed due to not knowing this ... one of the things I've learned recently is that "cheap" can be very different, almost opposite of "it will go higher".

As Buffet says, "if the secret to above average returns were knowing how to divide two numbers ..." ... but in fact this is what he does, the only difference being that he buys somewhat mature companies, with 50 years or more of existence and a bigger size. He achieves his above average results by taking the less risk possible when investing in stocks, like buying GE or Coca-Cola at 8 times earnings, for example.

I had a lot more to say, but there are just 5 minutes to go before the open.

SYX's ex-dividend date is March 17, that is, next Monday and I don't think the stock will fall before that dividend.

The plan is: SELL SYX around the 50 days SMA, which today will be standing at $13.71.

SYX looks ready to pop. I've still got my cheap shares

BIG day for MALL

SYX popped, but MALL exploded!

I just walked in the house! Glad I kept buying down to $9.10. And I'm glad I held on. Congrats to all who persevered. I hope there's more.

Quote from: BigSully1 on March 20, 2008, 04:20:29 PM
SYX popped, but MALL exploded!

VVTV another stock in the same space exploded at the end of the day too. :o   Seems like we are seeing some sector rotation here.

 >:D

per the trend this is what I got can happen with 1k shares, this is from a trending site.

Also if you see the second picture I put up institutional money has been going in to this company for the past 8 sessions.
Stochastics started pointing up again!
I don't own this one but it sure looks ready for purchase. jmho.

SYX on a tear!

SYX in retreat,go figure.

Here comes syx again on the outside.

Syx still churning higher,and they are sending me money next week. Cool.

Quote from: soxguy on March 28, 2008, 10:09:47 AM
Syx still churning higher,and they are sending me money next week. Cool.

Yeah, I think it's about ready for another leg higher. Have no intention of selling mine anytime soon. I think the CompUSA deal was a very good one. All of their retail stores will soon carry the well known CompUSA name, the website is also open, although seems to be a copy of TigerDirect and still has much to be desired. Hundreds of millions were spent promoting the CompUSA name, and SYX got it all for a measly $29M, which is not much more than they earned in last Q. I'd say it was a real bargain, and I like it.

The Attorney General investigation is still a concern, but not if management is to be believed.

Still there's the real possibility of more attacks from Barron's and/or StockLemon.

Quote from: BigSully1 on March 28, 2008, 10:38:28 AM

Quote from: soxguy on March 28, 2008, 10:09:47 AM
Syx still churning higher,and they are sending me money next week. Cool.

Yeah, I think it's about ready for another leg higher. Have no intention of selling mine anytime soon. I think the CompUSA deal was a very good one. All of their retail stores will soon carry the well known CompUSA name, the website is also open, although seems to be a copy of TigerDirect and still has much to be desired. Hundreds of millions were spent promoting the CompUSA name, and SYX got it all for a measly $29M, which is not much more than they earned in last Q. I'd say it was a real bargain, and I like it.

Is SYX ready for that next leg higher now? I think so if volume can pick up.

Quote from: BigSully1 on March 28, 2008, 10:48:51 AM
The Attorney General investigation is still a concern, but not if management is to be believed.

Still there's the real possibility of more attacks from Barron's and/or StockLemon.

Well at least I took some profits out of it today. I'll take the rest out Monday and let the shorts work their magic now for awhile. I was half expecting this to happen. It was fun while it lasted.

Law Offices of Howard G. Smith Announces Investigation on Behalf of Shareholders of Systemax Inc.
Friday April 4, 7:00 pm ET


BENSALEM, Pa., April 4, 2008 /PRNewswire/ -- Law Offices of Howard G. Smith announces that it is investigating potential claims against Systemax Inc. ("Systemax" or the "Company") (NYSE: SYX - News) concerning possible securities law violations by Systemax and certain of its executive officers between August 29, 2006 and January 28, 2008, inclusive (the "Class Period"), relating to, among other things, the Company's policies and procedures for the processing and payment of customer rebates.
ADVERTISEMENT
 



The investigation concerns alleged misrepresentations during the Class Period concerning the Company's financial performance as a result of its policies, practices and procedures which allegedly were designed to improperly prevent or deny payment of rebates to consumers and, in turn, to improperly and artificially inflate Systemax's financial results, including its reported profit margins and net income.

If you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll-Free at (888) 638-4847.

nice trade  ;)

Nice numbers!19.00 AH!

Press Release   Source: Systemax Inc.

Systemax Reports All-Time Record First Quarter Results
Thursday May 8, 4:03 pm ET
First Quarter Highlights:
-- Sales: $725 million, up 7.2% - all time Q1 record
-- Operating Income: $28 million, up 28% - all time Q1 record
-- Net Income: $18 million, up 30% - all time Q1 record
-- Diluted Earnings Per Share: $.48 vs. $.37, up 30% - all time Q1 record

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Systemax Inc. (NYSE:SYX - News) today announced its financial results for the first quarter of fiscal 2008.

Net sales for the quarter increased 7.2% to $725 million compared to $676 million in the first quarter of 2007. Sales of technology products grew by 7% and sales of industrial products grew by 11%. Gross margin for the quarter improved to 15.8% from 14.3% last year. Operating income increased 28% to $27.5 million compared to $21.5 million last year. Operating margin improved to 3.8% from 3.2% last year. Net income increased 30% to $18.1 million, or $.48 per diluted share, compared to $13.9 million, or $.37 per diluted share, last year. Included in net income in the first quarter of 2007 is an after-tax gain of approximately $1.5 million, or $.04 per diluted share, related to a lawsuit settlement.



Richard Leeds, Chairman and Chief Executive Officer, said, "Our first quarter 2008 results – highlighted by our continued growth in sales, improved gross margin, growth in operating income and the completion of the acquisition of certain CompUSA assets – are impressive considering the challenges we are facing in the current economic environment. We focused much of our attention during the quarter on the CompUSA acquisition, and we believe we have positioned this business for strong growth in the future. Our operating income continues to grow at a faster rate than revenues, demonstrating the leverage in our business model. Our consolidated gross margin again improved in the first quarter as it did consistently throughout 2007. Our selling, general and administrative expenses, excluding start-up costs associated with the CompUSA acquisition, have remained relatively stable as a percentage of sales, despite significantly increased consulting and staffing costs associated with the requirements of Section 404 of the Sarbanes-Oxley Act."

Gilbert Fiorentino, General Manager of Systemax's Technology Products segment, noted, "Sales increases in both the North American and European markets continued in the first quarter. North American and European technology product sales each grew 7%. In North America, we completed the CompUSA acquisition in the quarter; the new, improved CompUSA.com was acquired in early January and has been operational and generating sales since mid January. We also acquired, refurbished and restocked 16 former CompUSA retail stores during March and April. Sales from these stores was not significant during the quarter as most of the grand reopenings occurred in April. Total sales from CompUSA were approximately $18 million during the quarter. In Europe, the effect on sales of exchange rate changes was approximately $18 million. We now operate under the three strong primary brands – TigerDirect and CompUSA in North America and Misco in Europe – and we are well positioned in each of our multiple sales channels – business to business, business to consumer, retail and television shopping."

Richard Leeds, commenting on other operations, noted that "in the industrial products segment, sales grew 11% in the first quarter, driven primarily by increased internet sales and continuing competitive advantages due to our worldwide sourcing and aggressive pricing strategies. In our hosted software segment, our ProfitCenter Software business continued product development and has moved closer to bringing several significant customers live."

Larry Reinhold, Chief Financial Officer, noted that the Company's overall financial condition at March 31, 2008 remains solid after completing the CompUSA acquisition. Working capital was $227 million, including cash and equivalents of $98 million. The $1.00 per share special dividend declared by our board of directors during March aggregating $37.1 million was paid during the first week of the second quarter. Cash flow from operations was approximately $9 million. Included in this amount was an $18 million increase in inventory, most of which was for the initial stocking of the CompUSA retail stores. Capital expenditures aggregated $36 million, which included $30.4 million for CompUSA. Days sales outstanding were 26 days at March 31, 2008, and inventory turned at an annual rate of approximately 9.5 times during the first quarter. Our effective tax rate was 36.1% in the first quarter, down from 37.6% last year.

Systemax Inc. (www.systemax.com), a Fortune 1000 company, sells personal computers, computer supplies and accessories, consumer electronics and industrial products through a system of branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. The primary brands are TigerDirect, CompUSA, Misco and Global Industrial. It also manufactures and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based, on-demand application for multichannel direct marketing companies.

SYSTEMAX INC.

Condensed Consolidated Statements of Operations – Unaudited
(In thousands, except per share amounts)

QuoteWe're not out of the woods yet, but I think this is just the bottoming process running its course. 6 months down the road we'll be at all time highs and sellers at this point will be scratching their heads, thinking "how did I sell that stock for 6 times earnings?"

Not just scratching, banging my head on the wall.

QuoteI have a big book here, which is this:

Contrarian Investment Strategies: The Next Generation (http://www.amazon.com/Contrarian-Investment-Strategies-Next-Generation/dp/0684813505/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1204719117&sr=8-1), by David Dreman

The author shares an extensive study covering thousands of stocks for several decades which concludes that low p/e stocks are the best long term category of stocks. He defends this happens because analysts and investors are many times wrong in their predictions of the future and positive surprises is what propels stocks to move higher.

I guess I'm going to have to read this book again. Pages and pages of work down the tube due to weak hands.

Anyway, mistakes don't exist, they just point the way.

QuoteNice numbers!19.00 AH!

• InPlay: Systemax reports Q1 EPS of $0.52 vs $0.37 last year; revs rose 7% YoY to $725 mln - no ests (http://finance.yahoo.com/mp#syx)
Briefing.com (Thu 4:05pm)

Congrats on this one soxguy :) It looks like SYX is really going to make $2 EPS or more in 2008 like I always expected ... but I was thrown out of board due to weak hands. I wonder if this has happened also due to the pressure of writing about stocks everyday, not having the ability to just turn off the computer and walk away. There's a reason why Buffet doesn't look at stock prices everyday ...

Still no analysts following SYX, a $600 M market cap with $2.8 B in revenue in 2007, it's weird. Maybe analysts just don't trust SYX's accounting practices and they're afraid of putting their feet in the water.

Again, congrats soxguy!

Remember David,I'm in this one because you found it and analyzed it ad infinitum. I just stayed on what I thought was a good horse. Thank you for your stock picking talents.

Applaud!
Yes, I agree soxguy! David does have good "stock picking talent".

For all of us still holding SYX, more good news.  2,000,000 share buyback.  To all good health and trading.

poli

what a comeback..