3SOF

.06 bid price OMG

Quote from: capricho on January 22, 2008, 08:52:49 AM
.06 bid price OMG

ah ah ah, what were you trying to do capricho, scare some people?

PFSW was down like any other stock, but fundamentals keep improving ... longer term the stock price will reflect that. There's a reason why Peter Lynch says the first three years after he buys a stock are mostly irrelevant. It's only after three years that you know if you were right or wrong in your investment idea.

I remember when berloga asked: "But David, we have a 50% profit here, shouldn't we just take it?" I said "no, because fundamentals are improving and the stock remains undervalued".

However the stock went down anyway and now, instead of a 50% profit, I have just 3%, as fundamental changes were largely ignored over the last few months, especially in micro caps. So berloga was right in his assessment of reality and I was wrong.

Over the last few months I've learned that the market can always be more inefficient. If I thought PFSW was undervalued at $1.5, I think it is even more undervalued at $1, especially as fundamentals have improved beyond my expectations over the last few months.

I could have sold the stock at $1.5, but because I couldn't integrate that decision into my long term investment strategy, I've opted to keep holding it for the long term. But by "long term" I mean three years from the buying date, which was July 10, 2007. So, just seven months have passed. I need to remain patient and that's what I'll do.

PFSW has been working on the backstage to improve eCost.com, not telling it to investors:



This can be a big deal ... my wife tried to buy stuff from eCost.com this Christmas but they still didn't accept international orders. They do now

http://www.ecost.com/ecost/shop/showcase/international/

With the USD as weak as it is, every price is a bargain for European consumers.

As for the stock ... well, it went down 4.7% on Friday, closing at $1.02 I guess that after the first run of the large and medium caps, investors will turn their eyes into undervalued micro caps like PFSW and will push them up.

I'll continue holding PFSW for the long term. 

Nothing new on PFSW, I'm just leaving the updated chart:

PFSweb Selects Demandware to Power New End-to-End eCommerce Solution
WOBURN, MA, February 11 / MARKET WIRE/ --

Demandware (www.demandware.com), developer of the breakthrough On-Demand
eCommerce Platform, today announced that PFSweb, Inc. (NASDAQ: PFSW), a leading
business process outsourcing firm specializing in multi-channel commerce and
high-touch customer experience delivery, will embed the Demandware eCommerce
Platform within its new, next-generation end-to-end ecommerce solution. Under
this agreement, PFSweb will integrate and deliver the Demandware eCommerce
Platform along with its services for order management, fulfillment, customer
service, and emarketing, to offer a single unified solution for outsourced
end-to-end ecommerce operations. Complete details on the PFSweb solution can be
found at www.pfsweb.com.
PFSweb customers can now begin to migrate to this new end-to-end solution.
Roots, Canada's leading athletic lifestyle brand, has worked with PFSweb
through the launch of both its U.S. and Canadian online retail businesses.
Roots.com, an Internet Retailer Top 500 site, is expected to migrate to
Demandware within the second quarter of 2008.

"By selecting the combined PFSweb and Demandware solution, we feel we have
positioned Roots.com to serve our current and future customers with the best
possible online experience. This end-to-end solution will allow us to offer an
innovative, tightly integrated multi-channel experience that encourages cross
shopping and is completely representative of the Roots experience," said James
Connell, Director of E-Commerce, Digital Marketing and New Media for Roots. "By
engaging the combined efforts of PFSweb and Demandware, we will be able to
focus on our core competency of operating our store, while benefiting from
expertise of both organizations for IT and logistics."

After a thorough evaluation of ecommerce alternatives, including commercially
available licensed applications and home-grown solutions, PFSweb chose to
partner with Demandware for the clear operational advantages of its on-demand
delivery model and its industry-leading ecommerce merchandising capabilities.

"Demandware provides us with a true competitive advantage," said Mike
Willoughby, President of PFSweb's Services Division. "Outsourcing should not
force merchants to surrender brand and site control. By integrating
Demandware's industry-leading ecommerce platform with PFSweb's market-leading
fulfillment and customer care solutions, we are delivering a very unique
end-to-end ecommerce outsourced solution that combines in-house site control
with outsourced execution, comprised of best-of-breed components."

"The opportunity for a comprehensive technology and BPO product is
significant," said Rob Garf, Vice President and General Manager, Retail
Strategies, in the February 2008 AMR Research Article, "PFSweb + Demandware."
"Some 69% of retailers will replace their current e-commerce platform (for
order capture, catalog and content management, pricing and promotion
management, and order inquiry) by the end of 2008, a recent AMR Research study
shows."

PFSweb selected Demandware based on a number of differentiating capabilities,
including:
-- In-house merchandising control, outsourced business processes:
Recognizing market frustration with the limited merchandising and site
control provided by legacy outsourcing vendors, PFSweb required a solution
that enables its clients to retain full control over site merchandising and
the consumer experience. With Demandware, PFSweb clients have the option to
fully control promotions, catalog, pricing and customer site experiences,
while benefiting from PFSweb's robust support for fulfillment and customer
care.
-- Focus on ecommerce, not infrastructure: By embedding Demandware's on-
demand ecommerce platform, PFSweb and its clients are relieved of the
technical burdens and risk of managing the hardware, database, network and
on-going maintenance required to run a best-in-class ecommerce application.
This burden has led directly to the pitfalls of legacy outsourcing
solutions, such as inflexible technologies and business processes, high
service costs, and difficulty keeping sites current with the latest
ecommerce innovations.
-- Fast launch of new global businesses: A global provider, PFSweb serves
customers that are expanding into international markets. PFSweb clients can
leverage Demandware's multi-site, multi-brand and multi-currency
capabilities to launch and drive new global brands quickly.
-- Simplified access to ecommerce innovation: Because ecommerce is
constantly evolving, outsourced providers must keep their clients at the
forefront of innovation. By selecting Demandware, PFSweb clients can
receive free automatic upgrades quarterly, enabling them to continually
implement ecommerce best practices.
-- Integration across customer touch points: As a provider of outsourced
contact centers and a leader in high-touch customer care, PFSweb required
that its ecommerce platform enable a seamless customer experience between
the site and contact center. With Demandware, PFSweb can fully integrate
pricing, promotions, product content and session behavior to the contact
center, for better customer service and higher conversion.

"Time after time, customers are asking for a new end-to-end ecommerce
solution, one that provides them with the freedom and flexibility to control
their brands and customer site experiences, while enjoying the benefits of
end-to-end process outsourcing," said Stephan Schambach, Chairman and Founder,
Demandware. "With PFSweb, the market now has a best-in-class solution -- full
control over the ecommerce storefront, with the backing of a leading end-to-end
provider."

Hi Rmagos, thanks for posting PFSW's press release (which was issued yesterday before the open, so it was already reflected in the share price):

• PFSweb Selects Demandware to Power New End-to-End eCommerce Solution
Marketwire (Mon 2:09pm)

"The opportunity for a comprehensive technology and BPO product is significant," said Rob Garf, Vice President and General Manager, Retail Strategies, in the February 2008 AMR Research Article, "PFSweb + Demandware." "Some 69% of retailers will replace their current e-commerce platform (for order capture, catalog and content management, pricing and promotion management, and order inquiry) by the end of 2008, a recent AMR Research study shows."

I can't find the mentioned article on Google. DemandWare website looks cool.

I'm glad that PFSW held $1. Now we just want to see it closing above $1.08 ... this is such a micro-cap that it can fly pretty quickly ... it can happen at any time.

I'll patiently keep holding PFSW for the long term.

http://www.amrresearch.com/Content/View.asp?pmillid=21126


PFSweb and Demandware Form Strategic Partership

PFSweb and Demandware have formed a strategic partnership that will let PFSweb target the enormously growing e-commerce technology market. For the deal, Demandware's software-as-a-service (SaaS) e-commerce platform will supplement PFSweb's own business process outsourcing (BPO) services, which include fulfillment and customer care. The partnership operates more like an OEM. PFSweb is integrating the technology with its existing services, bringing the whole suite to market as a bundled unit and serving as front-line support.

Targeted at organizations with less than $250M in annual online revenue, the complementary combination should give retailers a broad suite of technology and services, while providing flexibility to choose what makes sense or bring certain functions in-house when business dictates.

The opportunity for a comprehensive technology and BPO product is significant. Some 69% of retailers will replace their current e-commerce platform (for order capture, catalog and content management, pricing and promotion management, and order inquiry) by the end of 2008, a recent AMR Research study shows. At the same time, retailers are looking to outsource some of their core online business processes such as call centers and fulfillment. Call centers, an area that often doesn't exist prior to running a direct-to-consumer business, are outsourced to the tune of 36%. And 19% contract with a third-party to manage fulfillment.

This partnership, which will allow PFSweb to provide an embedded technology component to its new end-to-end ecommerce outsourcing offering, was necessary to compete with its largest competitor, GSI Commerce. GSI Commerce, unlike PFSweb, markets its own proprietary e-commerce platform which is bundled with its services. PFSweb sets itself apart by having more flexible components, increased control over merchandising and marketing functions, and the ability to move areas in house if need be.

Unfortunately investors aren't attracted by PFSW's type of business in the current juncture. As it is now, the market values online retailers at no more than 10% of their annual revenues, so I figure www.ecost.com is worth about $10 M (since it sells just a bit more than $100 M a year).

To evaluate PFSW's other businesses I'll use GSIC's valuation, which is the largest operator in the sector, using an EBITDA multiple comparison. GSIC trades at 18.4 times EBITDA. PFSW trades at 4.7 times EBITDA.

If we attach GSIC's EBITDA multiple to PFSW and then add $10 M for eCost's value, we get a $194 M market cap, which is about four times more than PFSW's current market cap of $47 M.

PFSW is clearly and substantially undervalued. I'll continue holding PFSW for the long term.

hmm!!! 
http://www.sec.gov/litigation/admin/33-8525.htm

this is the response from another person in yahoo boards

QuoteThomas J. Madden
Senior Partner - Chief Financial Officer and Chief Accounting Officer

Thomas J. Madden has served the roles of CAO and CFO for PFSweb since its inception. He previously worked as Chief Financial Officer of Daisytek from 1997 to 2000; acted as Vice President of Finance, Treasurer and Chief Accounting Officer of Daisytek from 1994 to 1997 and as Controller of Daisytek from 1992 to 1994. Prior to joining Daisytek, Mr. Madden served as a financial consultant and audit manager with Arthur Andersen & Co. for 11 years.

Tom received his Bachelor of Science in Accountancy degree from The University of Illinois.

So is this the reason why the stock has been going down?!!!

Now this is Zack's PFSW's screen print.

PFSW closed below $1 for the first time since last August, which is a bearish technical development. Volume picked up a bit. We shall see if this makes investors bail out of PFSW or if it is just a technical trap.

I think the company is so undervalued at these levels that long term investors won't bail out and they'll push the price back above $1 soon.

People continue to see PFSW as eCost, but the way I see it the other parts of PFSW's business are more important and more valuable than eCost. If eCost can at least not lose money that would be good enough for now, and I think it is going to make a small profit in 2008.

The other parts of PFSW's business are currently valued at 3.5 times EBITDA, while competitors in the same industry are typically valued at 15 times EBITDA.

I'll keep holding PFSW for the long term.

(thanks for the information on PFSW pinoleropuro, I just saw it, it's nice to know that Zacks expects 8 cents EPS for PFSW this year)

Horrible reviews:

http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html

What is going on at ecost?

Ecost may not be a sufficient condition for stock shooting up, but it is a necessary condition.

Companies use EBITDA when they are not capable of making money.