3SOF

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.
ADVERTISEMENT


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
Business Wire (Mon 5:58pm)

Systemax gave us some more news today:

• Novint Technologies and TigerDirect Sign Agreement to Sell Innovative Falcon Game Controller
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
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.
ADVERTISEMENT


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
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 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. 

Can you believe that people were still selling this in the low 20's this morn? Thank you for being stupid, whoever you were. 

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. 

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

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.