I've been studying and thinking about PFSW for the past few days and the conclusion I make is that I want it in the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php).
The company now is a $50 M market cap company with estimated sales of almost $500 M for 2007. I'm buying it for roughly 1/10 of one year's revenues.
I know about losses at www.ecost.com, a PFSW wholly owned subsidiary (after last year's acquisition), but I like the long term prospects of that business. It resembles www.tigerdirect.com, in fact, it is a direct competitor. The difference is that www.tigerdirect.com is very profitable and www.ecost.com isn't.
But, also, SYX (the owner of www.tigerdirect.com) is a $972 M market cap company , that is, almost 20 times more than PFSW, so valuation already reflects the differences. My opinion is general e-commerce growth of about 25% per year for the next 10 years will lift all boats.
I also enjoy the recent developments at PFSW's traditional business, look at the latest headlines for the company:
• PFSweb Responds to Services Business Growth, Increasing Call Center Capacity by over 50% at U.S. Facilities (http://biz.yahoo.com/bw/070205/20070205005255.html?.v=1)
Business Wire (Mon, Feb 5)
• PFSweb Expands Capacity with New Canadian Headquarters to Meet Increased Demand of BPO Services (http://biz.yahoo.com/bw/070125/20070125005210.html?.v=1)
Business Wire (Thu, Jan 25)
• Riverbed Selects PFSweb to Provide International Logistics, Product Configuration and Final Assembly Solution (http://biz.yahoo.com/bw/070103/20070103005102.html?.v=1)
Business Wire (Wed, Jan 3)
• Fathead Selects PFSweb to Provide Custom Tailored E-Commerce, Fulfillment and Call Center Solution (http://biz.yahoo.com/bw/061227/20061227005055.html?.v=1)
Business Wire (Wed, Dec 27)
• LEGO Brand Retail Chooses PFSweb to Support Integrated Multi-Channel Direct to Consumer Initiative in North America (http://biz.yahoo.com/bw/061220/20061220005083.html?.v=1)
Business Wire (Wed, Dec 20)
• eCOST.com Reports Strong Sales of Select Consumer Electronics in First Week of Holiday Season (http://biz.yahoo.com/bw/061211/20061211005229.html?.v=1)
Business Wire (Mon, Dec 11)
Technically I believe the stock is about to initiate what an Elliot wave theorist would call wave 3, the longest and largest of all, after breaking out of a short term resistance trendline.
We're buying the stock on a pullback to that broken descending trendline, previous resistance, now support.
Trading Plan:
Buy PFSW, 6.66% of capital as always.
just FYI:
attached 12 slides
8)
Obviously I am no technician, but when I look at PFSW's 3-year weekly chart, I couldn't help noticing it is also experiencing a downtrend (connecting 3.75,2.85,1.8 all the way from early 2005) breakout. Currently it seems doing a throwback to the former downtrend line. >:D
Yep
My Fidelity T/A shows momentum and price crossing moving average as both bearish on Feb 7.
I've got a low ball limit order in.
I know what David would say! LOL
GMan
looks like the MACD is about to cross the signal line...starting to look like a coiled spring
I have to agree with David on this one. The stock was bearish for a long time but seems to have crossed the resistence and broken the trendline. I bought when this was recommended for 3SOF. I picked up more today as a result of the analysis. This sucker is ready to spring up fora nice run anyday now. The MACD screams it!
Quote from: realcoolhead on February 08, 2007, 10:11:01 AM
Obviously I am no technician, but when I look at PFSW's 3-year weekly chart, I couldn't help noticing it is also experiencing a downtrend (connecting 3.75,2.85,1.8 all the way from early 2005) breakout. Currently it seems doing a throwback to the former downtrend line. >:D
Yep, nice catch realcoolhead, for a no technician ;D:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=33125;image)
guitarman, prodigykid6 and lancefur, you seem to enjoy the MACD as an indicator. Let me add it to my chart below.
Let's check www.ecost.com today. They could improve the design of the website ... no, don't listen to me, save those dollars, show us a profit !
Everything is working as expected, I'll keep holding PFSW.
Bought PFSW @ 1.15$
Quote from: Se7en on February 09, 2007, 10:21:02 AM
Bought PFSW @ 1.15$
I guess now you just need strong hands to sell it with a nice profit !
We're buying PFSW for about 1/10 of its annual revenues and below book value. A business where I have some faith, because recently there are news out that the traditional business of PFSW has been picking up steam and www.ecost.com is at the right sector at the right time. Of course, there's fearless competition, but I think www.ecost.com being part of a publicly traded company and already selling about $140 M a year has its space. Its operations just need to be rationalized for the company to be profitable, and that's what PFSW has been doing.
I'm a believer in PFSW (also buying at a very, very cheap valuation).
PFSW is killing me...$1.05 has to be rock bottom. It should rise the rest of the week with the 50 day moving average as a support. JMO
Did the earnings come out? I see some indication that they did from DJ, but dont see any news on Yahoo yet.
Quote from: tokyopua on February 12, 2007, 10:03:36 AM
Did the earnings come out? I see some indication that they did from DJ, but dont see any news on Yahoo yet.
I don't have anything on my news service.
Quote from: prodigykid6 on February 12, 2007, 09:59:04 AM
PFSW is killing me...$1.05 has to be rock bottom. It should rise the rest of the week with the 50 day moving average as a support. JMO
You get killed pretty easily prodigykid6. Are you using leverage?
yeah i just put in a order @ 1.05 but it isn't filled yet.
> You get killed pretty easily prodigykid6. Are you using leverage?
This is funny! :)
I used to fidget all the time (now do sometimes) over the +/-10% on the fast moving stocks. Now I get bored looking at them. I trust the mastermind (David, that is); his climate zone being well suited for a relaxed stock trading so I can be sitting here is chilling in my double-layer coat. :)
I think PFSW is developing an inverse head and shoulders pattern, but that's still just a possibility. The stock needs to hold $1.03 on close to respect that technical pattern, and then rise and close above the neckline, which for today stands at $1.17.
Fundamentally, at least from what I saw until now, I can't justify this trade being wrong, since I'm buying the stock at 1/10 of annual revenues. I've had businesses before. I believe the hard part is to have meaningful revenues, to be profitable all one needs to do is to cut costs, and that almost every manager can do, that's the easiest part of a business in my opinion (most business owners only know that part, they don't know how to grow revenues).
Let's see if the inverted head and shoulders pattern is what the chart has in store for us, but I'll keep holding PFSW in the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php) whatever happens to the short term technical picture.
(thanks for your kind words berloga :))
Already down Pre-market, not looking good ... :(
If we break the 50MA at 1.03$ we'll likely see a retest of the 200MA at 0.94$! ::)
Quote from: Se7en on February 13, 2007, 08:32:28 AM
Already down Pre-market, not looking good ... :(
If we break the 50MA at 1.03$ we'll likely see a retest of the 200MA at 0.94$! ::)
I think it is better for the bullish case to have a lower open than a higher open. A lower open and a positive close might reverse the last 2 days bearish trend. This thinking has to do with candlestick's theory, a very short term analysis tool.
Wait until the close before jumping into conclusions. I'll hold whatever happens, good luck :)
If I had the strategy of selling stocks when they go down 10% or so from my buying price, I wouldn't have SYX in the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php) and performance would be a lot less.
PFSW continues to develop the second shoulder of an inverted head and shoulders pattern, which is a bullish reversal or bullish continuation pattern. Technically, this will only be confirmed after the stock is able to close above the neckline, at around $1.17 - $1.18.
The current share price represents a triple support area. It's the descending trendline, which was a resistance, and now acts as support. It is the 50 days simple moving average. And the possibility of this being the second shoulder.
I'm curious about what the next couple of days will bring, but I'll keep holding PFSW in the Main Portfolio (http://www.3stocksonfire.org/3stocksonfire.php) due to fundamentals, which look very attractive to me (I mean, fundamentals in comparison to price, of course).
In at $1.01!
David from watching your charts for a while, it seems the golden cross indicator is one of the stronger flags for long term bullis behaviour?
Would I be correct in "generally" assuming that something pretty catastrophic has to occur to start a bearish reversal?
Thanks
GMan
David. Today I sold out of psfw and put the money into CPNE.OB. It was a mistake for me to buy a stock that I was not confortable with in the first place. Psfw is not my kind of stock for these reasons: They are not profitable. Have very low margins . Operating margins are negative. The businesses that they are in are very competitive. (Hence the low margins). I think that one day however this could turn into a very nice investment. I am just not convinced that now is the right time for me. CPNE is more my kind of stock so I wasn't scared at all when it went down today. I used the dip to pick up some more shares of a company that I am confident in and let go of one that worried me after I dug into it a little deeper. I am not trying to say that PFSW is a bad stock I am just trying to say that it is not right for me so please don't take offense. I love the service you provide and will continue to be a premium member for the long term. Thanks for providing me with a place to share my fears and help build my confidence back up.
The more I look at CPNE the more excited I get about it prospects. The stock is ridiculously Undervalued and should be trading near 5.00 per share now. That is a low ball estimate by the way, but still a double from where we are now. Just keep up the good work and keep the information coming. Also thanks for your analysis of the news that came out for CPNE yesterday. You helped me to understand it and Kept us all level headed while a lot of people were panicking today. Thanks. Tireslinger.
Tireslinger, I've been in this game for a week now... and I did the same thing...Bought on CPNE's dips...I hope we're right....I'm all down with the whole picture (diversified) over time, but I had to switch horses on the $$ I put into PFSW.... If I'm wrong, I'll chalk it up to learning-- It felt right at the time. I hope I'm not getting caught up in CPNE hype: There's not a whole lot of other sources on this stock and I'm not sure I feel OK on their web presence (rip-off report and excrutiatingly long new domain names included). 8)
Quote from: jmccar2 on February 14, 2007, 10:38:34 PM
Tireslinger, I've been in this game for a week now... and I did the same thing...Bought on CPNE's dips...I hope we're right....I'm all down with the whole picture (diversified) over time, but I had to switch horses on the $$ I put into PFSW.... If I'm wrong, I'll chalk it up to learning-- It felt right at the time. I hope I'm not getting caught up in CPNE hype: There's not a whole lot of other sources on this stock and I'm not sure I feel OK on their web presence (rip-off report and excruciatingly long new domain names included). 8)
Jmccar2,
Thanks for the support jmccar2. I also felt good about my decision to sell PSFW and put it into a great company like CPNE at a discounted price. I feel really good about CPNE but had alot of doubts about Psfw.
I really like this site and service a lot. I have been a premium member for about a week now myself and have found Davids advice and calm manner to be very helpful to someone like me who was pron to panic and sell to soon. I think if we stick with this site we will both make some good money.
I am not worried too much about CPNE web site or their complaint list from customers. The one complaint I read was from a woman that said she was paying 120 dollars for something through the service and was selling it for 95 dollars. Is that really CPNE's fault? I think that she was just not using the service right and blaming her failure on CPNE. Most of the other complaints were just about CPNE trying to sell them other services. I like that. If you ever start feeling nervous about CPNE just go look at Davids analysis of the stock and it will make you feel better. It always helps me to know as much as I can about the company that I have my money in. Thanks. Tireslinger.
Quote from: tireslinger on February 14, 2007, 11:03:44 PM
Quote from: jmccar2 on February 14, 2007, 10:38:34 PM
Tireslinger, I've been in this game for a week now... and I did the same thing...Bought on CPNE's dips...I hope we're right....I'm all down with the whole picture (diversified) over time, but I had to switch horses on the $$ I put into PFSW.... If I'm wrong, I'll chalk it up to learning-- It felt right at the time. I hope I'm not getting caught up in CPNE hype: There's not a whole lot of other sources on this stock and I'm not sure I feel OK on their web presence (rip-off report and excruciatingly long new domain names included). 8)
Jmccar2,
Thanks for the support jmccar2. I also felt good about my decision to sell PSFW and put it into a great company like CPNE at a discounted price. I feel really good about CPNE but had alot of doubts about Psfw.
I really like this site and service a lot. I have been a premium member for about a week now myself and have found Davids advice and calm manner to be very helpful to someone like me who was pron to panic and sell to soon. I think if we stick with this site we will both make some good money.
I am not worried too much about CPNE web site or their complaint list from customers. The one complaint I read was from a woman that said she was paying 120 dollars for something through the service and was selling it for 95 dollars. Is that really CPNE's fault? I think that she was just not using the service right and blaming her failure on CPNE. Most of the other complaints were just about CPNE trying to sell them other services. I like that. If you ever start feeling nervous about CPNE just go look at Davids analysis of the stock and it will make you feel better. It always helps me to know as much as I can about the company that I have my money in. Thanks. Tireslinger.
I agree you shouldn't be in a stock that your not comfortable with but I think you under estimate the potential in PFSW. I'm going to hold until earnings which should be soon. There has been nothing but good news as of late on PFSW and everybody already knows the bad news. The 50 day moving average looks like its showing support. I think PFSW gradually moves up as earnings and the 200 day moving average starts to trend upward. I'm going to try and take some profits on CPNE on earnings and put it into PFSW if the price is under 1.12. JMO
QuoteDavid from watching your charts for a while, it seems the golden cross indicator is one of the stronger flags for long term bullis behaviour?
Yes, the 50 days crossing the 200 days simple moving average on the upside is a truly long term bullish signal.
QuoteWould I be correct in "generally" assuming that something pretty catastrophic has to occur to start a bearish reversal?
I wouldn't say catastrophic, a reversal in fundamental trends or expectations could do it, that's why I update every holding every day, to keep up with incoming information.
QuoteI am not trying to say that PFSW is a bad stock I am just trying to say that it is not right for me so please don't take offense.
I wouldn't even if you said PFSW is a piece of crap. I respect and value other people's opinions, it doesn't matter if they match or completely disagree with mine.
QuoteAlso thanks for your analysis of the news that came out for CPNE yesterday. You helped me to understand it and Kept us all level headed while a lot of people were panicking today. Thanks. Tireslinger.
Just doing my job. But thanks for your kind words :)
QuoteI agree you shouldn't be in a stock that your not comfortable with but I think you under estimate the potential in PFSW. I'm going to hold until earnings which should be soon. There has been nothing but good news as of late on PFSW and everybody already knows the bad news. The 50 day moving average looks like its showing support. I think PFSW gradually moves up as earnings and the 200 day moving average starts to trend upward.
Prodigykid6, this text will award you 3 points more to your rating. I completely agree with prodigykid6 as he wrote what I was about to write.
I'll keep holding PFSW.
QuoteProdigykid6, this text will award you 3 points more to your rating. I completely agree with prodigykid6 as he wrote what I was about to write.
I'll keep holding PFSW.
YES!!! More candy! ;D Thanks Dave...I feel like most investors that view your 3SOF have given up on PFSW and ETLT.OB. They almost act like its to late to get in or lack confidence just because it doesn't go straight up when you wave your magic wand. Maybe you should tell them that these are excellent entry points and more of what your expecting them to do in the future. I know you have said it before but its good to hear your soothing confidence again ;) BTW did you like my ONXX short I posted in the members corner? I'm in at $25.95 and plan to add more depending on the earnings release today.
[/quote]
I agree you shouldn't be in a stock that your not comfortable with but I think you under estimate the potential in PFSW. I'm going to hold until earnings which should be soon. There has been nothing but good news as of late on PFSW and everybody already knows the bad news. The 50 day moving average looks like its showing support. I think PFSW gradually moves up as earnings and the 200 day moving average starts to trend upward. I'm going to try and take some profits on CPNE on earnings and put it into PFSW if the price is under 1.12. JMO
[/quote]
Prodigy,
I don' t believe that I am underestimating PSFW. In fact if you would have read my post you would have seen that I said I think it will be a good investment one day. It is just that right now it is not the kind of stock that I would normally invest in. I think that every one of us here has our own set of guidelines that we try to adhere to and if we deviate from that set of standards that we have set for ourselves then we are opening the door for confusion and fear and then we will begin to make mistakes. I was excited about this site and have complete confidence in Davids ability to pick good stocks so I bought the stock on his recommendation alone and did not look at the financials too hard. My intent was just to follow Davids advice and do what he did no matter what, but then I realized that no matter how much I believe in someone else I will never have confidence in my own abilities if I stray from what got me to the dance in the first place. I think that PSWF has a good chance of becoming profitable one day, and I believe that they will turn ecost around as well. Some might say that it is too late to buy then, and that I will miss a good profit, but if it is truly a good company it will continue to go up even more afterwards. I do not want to lose myself or my core investing strategy somewhere along the way. Thats all I was trying to say in my post. Tireslinger.
Well Tireslinger.... :-[ Perhaps we should've had some faith :'(
Quote from: jmccar2 on February 16, 2007, 06:57:05 PM
Well Tireslinger.... :-[ Perhaps we should've had some faith :'(
jmccar2, I am happy for all of those that are still in the stock, and I hope it continues to go well for them. I have no regrets for selling the stock. CPNE.OB is a much better stock. Check out my valuation of CPNE.OB on the main message board and you will see what I mean.
Chart is looking good ;D. Hoping for the volume to pick up even more next week and continue the trend upward.
Quote from: tireslinger on February 16, 2007, 09:25:28 PM
Quote from: jmccar2 on February 16, 2007, 06:57:05 PM
Well Tireslinger.... :-[ Perhaps we should've had some faith :'(
jmccar2, I am happy for all of those that are still in the stock, and I hope it continues to go well for them. I have no regrets for selling the stock. CPNE.OB is a much better stock. Check out my valuation of CPNE.OB on the main message board and you will see what I mean.
By the way tireslinger, CPNE's thread has so many messages that I need to go back and download your CPNE's fundamental study (moreover let me increase your rating ;)).
I also believe CPNE has more potential than PFSW, but since I don't invest more than 6.66% of the Main (http://www.3stocksonfire.org/3stocksonfire.php)'s capital in one single stock (of course, then that percentage can change due to the stock's own rise or fall), I need 15 different holdings to be full invested - this is one of my most important money management rules.
I understand your reasoning on PFSW, though. You don't like it mainly because the company isn't profitable yet. I also worry about that.
But this management doesn't have the habit of diluting shareholder's value, and 2007 sales are expected to come in at $482.2 M. The company lost "just" $7 M in the nine months through September 2006. My take is it probably isn't too hard to transform a $7 - $10 M loss into a $10 M annual profit, when you have $482 M in revenues!
And, with an annual profit of $10 M PFSW is trading at 5 times earnings. And what if, instead of $10 M net income, they get $20 M net income? Net profit margin would still be low, at 4.15%, but the stock probably would be valued at an average 16 times earnings multiple, that is, $320 M. That would mean a price per share of about $6.78.
Technically the second shoulder of the inverted head and shoulders pattern is in. What PFSW needs now is to breakout above the $1.18 all important neckline. The technical projection of that breakout would then be ($1.18-$0.91)+$1.18 = $1.45.
But we still need to see if there's validation of the technical pattern.
I'll continue holding PFSW.
I was taking a look at the ecost.com reseller ratings, I dont how ecost.com has extremely poor reseller ratings. I dont know if PFSW management can turn around ecost.com in the short term they need much better customer service, support, and a consumer friendly return policy.
http://www.resellerratings.com/store/eCost
Compare the ratings to tiger direct
http://www.resellerratings.com/store/Tiger_Direct
So we can get an idea of how a better managed profitable online store is ran. Here is one of the best online stores out there.
http://www.resellerratings.com/store/Newegg
Here an example of a once good online computer store that turned for the worse and went downhill and eventually bankrupt.
http://www.resellerratings.com/store/Monarch_Computer_Systems
Reading the customers feedback can give you an idea of the trend of an online store and if they will have repeat customers or continue to lose more existing and potential customers.
Quote from: David Randolph on February 19, 2007, 11:57:43 AM
Technically the second shoulder of the inverted head and shoulders pattern is in. What PFSW needs now is to breakout above the $1.18 all important neckline. The technical projection of that breakout would then be ($1.18-$0.91)+$1.18 = $1.45.
But we still need to see if there's validation of the technical pattern.
There it is, break and close above $1.18 on some decent volume! :)
Great info nullzero, thanks :)
The way I see it, those poor consumer ratings and prospects are completely priced in by the share price. That partially explains why SYX is a $1.06 B market cap company and PFSW is just $55.76 M, that is, almost 1/20 of the value.
The one analyst covering the stock, which is Dutton Associates, is expecting $482.2 M in revenues in 2007. My take is, it can't be all that difficult to turn a $10 M annual loss into a $10 M annual profit, when you're selling close to $500 M.
PFSW's valuation is reflecting the $10 M loss. But there's the real possibility of the company, with some restructuring and cost cutting efforts, turning the corner towards profitability. Moreover, the recent press releases show PFSW's business outside of www.ecost.com (still the most important part) is growing.
If the can pull out a $10 M positive net income in 2007 I see a $150 M market cap, and that is almost triple of what it is now. I have this expectation and will keep holding the stock for as long as I have faith in it, that is, for as long as incoming information doesn't reveal a different landscape.
Technically the stock just confirmed my expected inverted head & shoulders pattern. Now it will probably run to test recent 2007 highs of $1.44. I'll continue holding PFSW.
Nothing new on PFSW, I'll continue holding the stock.
PFSW continues to digest the strong gains it had in the beginning of the week. I see the stock has this habit of breaking its "natural" levels by just a bit before the trend continues. The trend is now bullish, as one can see by checking the stock above the 50 and 200 days moving averages.
Let's watch www.ecost.com for a minute. They could improve the design of the website, I don't know about those blank spaces, www.tigerdirect.com looks a lot more aggressive - but, as I've been saying, the market is already valuing both companies very differently. And PFSW is a lot more than www.ecost.com, as SYX is a lot more than www.tigerdirect.com.
I feel PFSW will surprise everybody throughout 2007, as their traditional business is picking up steam.
I'll continue holding PFSW.
PFSW fell just a bit below the neckline, but this stock has this habit of breaking down by just a little bit before running higher (the same thing happened when building that second shoulder as you can check on the chart below).
The fundamental case was completely explained on the rest of this thread, nothing changed as there weren't any news out, I'll continue holding PFSW.
I made a quick dilution test (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=pfsw&lstStatement=Income&stmtView=Qtr) on PFSW and was worried because I saw the share count rising a lot on a quarterly basis (http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=pfsw&lstStatement=Income&stmtView=Qtr), but then I remembered the merger with eCost happened in 2006 and that totally explains the share count increase, because PFSW had to issue new shares to eCost shareholders (18.98 million new shares).
But I have some worries that more dilution has occurred in December and January, we'll just have to wait for the 4Q SEC form 10 to find out.
Technically the stock unfortunately couldn't "hold the bar" of the bullish head and shoulders pattern, but since it is trading above the 50 days and 200 days moving average I still see it as bullish.
I wonder if the 4Q, being the strongest for www.ecost.com, won't show an improving financial picture.
I'll continue holding PFSW.
I fear a consumer led recession (//http://) will make things worse at www.ecost.com. Also PFSW didn't respect the chart. I also fear dilution due to a weak balance sheet.
I'll take my 8 or 9% loss on PFSW and move on.
TARGET: $1.5+ AFTER EARNINGS on 8/14/2007
..........PFSW HIGHLIGHTS...............
- AMAZING eCOST DIV. TURNAROUND!!!
- $450M REVENUES
- $45M MARKET CAP
- STRONG BALANCE SHEET
- POISED TO RETURN TO PROFITABILITY
- On July 9, 2007 PFSW surprised the street by announcing that on August 14, 2007 its eCOST division will report $26 M in revenues for Q2 2007. This a 19.25% revenue growth from Q1 2007.
- In a previous CC management estimated that with its new cost structure, online retailer eCOST would be profitable when it reached $25M in revenues.
- The poor eCOST performance, after being acquired in early 2006, was the main reason for PFSW losses and poor stock performance. Prior to the eCOST acquisition PFSW traded North of $3.
- The eCOST turnaround is very timely as the strongest season for this division, the Holiday season, is coming up.
- The eCOST turnaround is due to a focused effort by management to improve its performance by improving customer service, product selection, marketing results, etc..
- In Q1 2007 PFSW predicted that for the whole group it expects to net EBITDA of $8 to $10M for 2007. PFSW reported an EBITDA of only $2.5M for 2006. This is a 300% to 400% improvement!!!
- In Q1 2007 PFSW reported EBITDA of $0.8M
- Based on the above, PFSW will have to average about $2.5M to $3.0M in EBITDA for 2Q, 3Q, and 4Q to meet its guidance for 2007 .
- Should PFSW report an EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 EBITDA loss of $0.7M by 500%.
PFSW generates about $450M/year in revenues and its market cap is only $46M!.
Fair value has been estimated to be $6 based on comparables should PFSW return to consistent profitability as it did prior to the eCOST acquisition.
PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.
ABOUT PFSW:
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, FLAVIA� Beverage Systems, Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd., and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST com brand markets approximately 100,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon, Onkyo, Seiko, Sony, and Toshiba primarily over the Internet and through direct marketing.