PFSW

[tokyopua]

PFSW acting a bit aggressively today, looking good 

[setravis]

spexculito,
you posted to the existing thread, then today you create a new thread.
Please refrain from doing such things.
You are not one very adapt to doing what you are ask...why?
Become part of 3SOF...not a rebel ! 


"PFSW" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                            
All history on a stock pick in 1 thread is awesome.                           
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.                 
Thank You....and good luck with all your trades....make some $$$           

[David Randolph]

PFSW acting a bit aggressively today, looking good 

Yeah

PFSW will probably challenge the $1.08 resistance level and hopefully it will make a bullish breakout when the company reports its 2nd quarter results on August 14. It should, given the fundamental turnaround.

I guess the way PFSW behaved while the general market was down is a clue that it will indeed head higher over the short and medium term. I'm also bullish for the long term.

[David Randolph]

No follow through in PFSW yesterday. An eventual bullish breakout of the $1.08 level will probably depend on the August 14th news, when the company reports 2nd quarter results.

I'll keep holding PFSW.

[spexculito]

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.

[babouk]

From Yahoo message board:

- On July 9, 2007 announced surprised the street by announcing that its ecost division will post $26 M in revenues in Q2 2007, a 19.25% revenue growth from Q1 2007.

- In a previous CC management estimated that with its new cost structure, eCOST would be profitable when it reached $25M in revenues.

- In Q1 2007 PFSW predicted EBITDA of $8 to $10M for 2007. PFSW reported $2.5M EBIDA for 2006. This is a 300% to 400% improvement!!!

- In Q1 2007 PFSW reported EBITDA of $0.8M

- Based on the above, PFSW will have to average about $2.5M for 2Q, 3Q, and 4Q 2007.

- If PFSW reports a EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 by a wide margin. In fact, PFWS might report its first profit in several quarters.

- PFSW 2Q 2006 reported a EBITDA loss of $0.7M due mostly to the very poor eCOST performance a revenue dropped and losses increased significantly. Net loss was $3.2M!!!

eCOST has been the main reason why PFSW has performed so poorly as a stock since it was acquired. PFSW has done an amazing job of turning around this division around as evidenced by the sequential improvement of the last 2 quarters.

The eCOST turnaround is due to improvements in several fronts including customer service, product selection, more efficient marketing, etc.. The turnaround is very timely as the strongest season for this division, the Holiday season, is right in front of us.


PFSW generates about $450M/year in revenues and its market cap is only $46M!.

Fair value has been estimated to be $6 based on comparables is PFSW can return to consistent profitability.

PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.

[David Randolph]

From Yahoo message board:

- On July 9, 2007 announced surprised the street by announcing that its ecost division will post $26 M in revenues in Q2 2007, a 19.25% revenue growth from Q1 2007.

- In a previous CC management estimated that with its new cost structure, eCOST would be profitable when it reached $25M in revenues.

- In Q1 2007 PFSW predicted EBITDA of $8 to $10M for 2007. PFSW reported $2.5M EBIDA for 2006. This is a 300% to 400% improvement!!!

- In Q1 2007 PFSW reported EBITDA of $0.8M

- Based on the above, PFSW will have to average about $2.5M for 2Q, 3Q, and 4Q 2007.

- If PFSW reports a EBITDA of $2.5M for 2Q 2007 on August 14, 2007 it will beat 2Q 2006 by a wide margin. In fact, PFWS might report its first profit in several quarters.

- PFSW 2Q 2006 reported a EBITDA loss of $0.7M due mostly to the very poor eCOST performance a revenue dropped and losses increased significantly. Net loss was $3.2M!!!

eCOST has been the main reason why PFSW has performed so poorly as a stock since it was acquired. PFSW has done an amazing job of turning around this division around as evidenced by the sequential improvement of the last 2 quarters.

The eCOST turnaround is due to improvements in several fronts including customer service, product selection, more efficient marketing, etc.. The turnaround is very timely as the strongest season for this division, the Holiday season, is right in front of us.


PFSW generates about $450M/year in revenues and its market cap is only $46M!.

Fair value has been estimated to be $6 based on comparables is PFSW can return to consistent profitability.

PFSW has a solid balance sheet and solid fundamentals. I expect that it will be trading North of $3 after Christmas. Even at $3, PFSW would still be trading at a deeply discounted P/S of about 0.3.

I fully agree with this Yahoo poster babouk, thanks for bringing us the text. He summarizes everything that we've been writing about PFSW and adds some new information about EBITDA and what to expect when the company reports 2nd quarter earnings.

The S&P 500 fell 3% yesterday. PFSW rose about 3%. I think it will make a bullish breakout of the $1.08 level when the good news hits the wire.

I'll continue holding PFSW for the long term.

[spexculito]

RECENT 3STOCKSONFIRE VIDEO ANALYSIS ON PFSW:

http://www.stocksonvideo.com/forum/index.php?topic=79.0&ref=video


* pfsw.pdf

[David Randolph]

I don't have a good explanation to why PFSW fell 5.8% in Friday's session. I don't have a bad explanation either.

I'll just hold and wait for tomorrow's news.

[JKN]

Hang in there David -  I believe your strategies are sound and will payoff in the long-run, your record is pretty good.  I'm still around and just upped for another year.

Here's some news on PFSW...

DigitalPost Interactive Partners With eCOST.com in Strategic Marketing Alliance
eCOST.com Customers to Enjoy Advanced Web 2.0 Features of TheFamilyPost.com


IRVINE, CA, Aug 13, 2007 (MARKET WIRE via COMTEX) -- DigitalPost Interactive (DGLPdigitalpostinteractive inc com
DGLP ) ( www.dglp.com), a provider of user-friendly Web platforms for digital media sharing and social networking, announced today that it has entered into a marketing partnership with eCOST.com, a leading multi-category online retailer, to offer a trial of its flagship service www.TheFamilyPost.com as an added value to eCOST.com customers.
TheFamilyPost.com is an innovative Web 2.0 platform that enables even the most novice Internet users to create their own, visually stunning websites that combine rich multimedia with social networking functionality. Upon placing their orders, each eCOST.com customer will be presented with a trial version of their own, customizable family website through TheFamilyPost.com. Once their sites are created, those clients will be able to upgrade to a subscription at any time to store additional multimedia, and to take advantage of the premium version's advanced functionality, including chat rooms, message boards, and unlimited photos and videos.
"This is a great opportunity for eCOST.com customers to enhance their digital Internet experience," said Michael Sawtell, CEO, DigitalPost Interactive. "We're pleased that eCOST.com is offering our websites to its established online customer base, and are confident they will recognize and appreciate the added value this partnership provides."
"By providing our customers with this unique free website offer, we continue to expand the value of shopping at eCOST.com," said Gary Guy, President of eCOST.com.

[JKN]

PFSweb Reports Positive Net Income and $3.4M in Adjusted EBITDA; eCOST.com Performance Continues To Improve



Last Update: 8:01 AM ET Aug 14, 2007


PLANO, Texas, Aug 14, 2007 (BUSINESS WIRE) -- PFSweb, Inc. , a global provider of business process outsourcing ("BPO") solutions for both online and traditional commerce, today announced its financial results for the second quarter and six months ended June 30, 2007.
Summary of consolidated results for the second quarter ended June 30, 2007:
-- Total reported revenue was $108.4 million, compared to $109.3 million for the second quarter of 2006;
        -- eCOST.com revenue was $27.1 million, compared to $21.6
           million in the first quarter of 2007 and $28.8 million for
           the same period in 2006;


-- Adjusted EBITDA (as defined) was $3.4 million versus $3,000 for the same period last year;
-- Net income was $154,000, or $0.00 per basic and diluted share, compared to a net loss of $3.2 million, or $0.07 per basic and diluted share, for the second quarter of 2006;
-- Merchandise sales (as defined) totaled approximately $649 million for the second quarter of 2007 versus $662 million for the same period last year;
-- Total cash, cash equivalents and restricted cash equaled $16.9 million as of June 30, 2007.
Summary of consolidated results for the six months ended June 30, 2007:
-- Total reported revenue was $212.8 million, compared to $220.0 million for the six months ended June 30, 2006;
-- Adjusted EBITDA (as defined) was $4.1 million versus $1.6 million for the same period last year;
-- Net loss was $2.2 million, or $0.05 per basic and diluted share, compared to a net loss of $4.8 million, or $0.12 per basic and diluted share, for the six months ended June 30, 2006;
-- Merchandise sales (as defined) totaled nearly $1.3 billion versus $1.2 billion for the same period last year.
Please note that the prior year's six months consolidated results only include the financial results for eCOST.com from the date the merger closed on February 1, 2006 through June 30, 2006.
Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "We are pleased to report our first quarter of profitability on a consolidated basis since the merger of eCOST.com was completed approximately 18 months ago. Furthermore, Adjusted EBITDA grew from just $3,000 in the second quarter of 2006 to $3.4M in 2007. We believe this quarter was another solid step in the execution of our strategic plan to drive growth and improve financial performance by leveraging our world class technology and operational infrastructure across multiple channels. We have a good outlook for each of our businesses and I believe our overall financial health is rock solid. We believe we remain on track to meet our goal of consolidated annual revenue of $420 to $435 million and Adjusted EBITDA of $8 to $10 million in 2007."
Summary of results by business:
Service Fee Business:
For the second quarter of 2007, Service Fee revenue increased 9% to $17.6 million, compared with $16.2 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $1.9 million for the second quarter of 2007, compared to $2.0 million for the same period last year.
For the six months ended June 30, 2007, Service Fee revenue increased 8% to $34.6 million, from $32.1 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.2 million for the six months ended June 30, 2007, compared to $3.3 million for the same period last year. The drop in Adjusted EBITDA is primarily attributable to a decrease in project work in 2007, lower gross profit margins on certain new client implementation activity, as well as increased SG&A costs primarily related to additional facility and personnel related expenses.
Mike Willoughby, President of PFSweb's services divisions commented, "We are pleased with the revenue growth experienced from the new contracts signed in the fourth quarter of 2006 and first quarter of 2007. This is the first quarter that all of these contracts, including Lego and Riverbed, have been fully implemented. Gross margins for the business remain within our targeted range of 25-30%. Next week we are hosting a ribbon cutting ceremony with the executive team of Lego at our Memphis distribution facility to formally launch the new initiative. Looking ahead, we are excited by the potential for new contracts as our new business pipeline has strengthened to approximately $38.5 million, compared to $25 million at the end of the first quarter."
Supplies Distributors Business:
For the second quarter of 2007, Supplies Distributors revenue was $57.6 million, compared to $60.9 million for the same period last year. Adjusted EBITDA was $2.1 million for the second quarter of 2007, compared to $1.6 million for the same period last year.
For the six months ended June 30, 2007, Supplies Distributors revenue was $116.4 million, compared to $129.3 million for the same period last year. Adjusted EBITDA was $3.4 million for the six months ended June 30, 2007, a slight increase compared to $3.3 million for the same period last year.
Mr. Willoughby continued, "During the second quarter, results for the Supplies Distributors business were within our expectations, and margins improved to 8%, slightly above their normal range due to the impact of certain incremental inventory cost reductions. However, revenue for the six month period declined due to reduced vendor promotional activity, the impact of foreign currency fluctuations and lower unit volumes in the first quarter of 2007."
eCOST.com Business:
For the second quarter of 2007, eCOST.com revenue was $27.1 million, compared to $21.6 million in the first quarter of 2007 and $28.8 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the quarter was a loss of $0.6 million, compared to an Adjusted EBITDA loss of $0.9 million for the first quarter of 2007 and a loss of $3.6 million for the same period last year.
For the six months ended June 30, 2007, eCOST.com revenues were $48.7 million, compared to $50.6 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the six months ended June 30, 2007 was a loss of $1.5 million, compared to a loss of $4.9 million for the same period last year. Please note, the prior year period results for eCOST.com reflect only five months of activity from the date of acquisition of February 1, 2006 through June 30, 2006.
Mr. Layton continued, "The eCOST.com business continues to show substantial improvements. Revenue for eCOST.com has increased sequentially in each of the last three quarters. Also, gross profit margins have improved strongly year-over-year, while costs have trended down. This has led to a sharp reduction in eCOST.com's losses versus the second quarter of 2006."
"During the quarter, eCOST.com went live with several new enhancements that we believe will help drive overall growth and improved margins. These incremental enhancements include: the launch of a new home and outdoor products category, improved product detail pages and multiple images of products, addition of a related accessories tab to the product detail page, a new shopping cart 'jump page' that also offers related products and other features, and improved "hot product" presentation in each of our major product categories. With these and many other improvements underway, we believe we are well-positioned for continued growth and are excited by the momentum we are seeing in the eCOST.com business." Mr. Layton concluded.
Significant operating events for second quarter of 2007:
-- The Service Fee business successfully implemented a customized order management and logistics solution for LEGO Brand Retail
-- The Service Fee business successfully implemented a customized international logistics and product configuration solution for Riverbed Technology
-- Opening of a new Customer Care facility in Manila, Philippines to house customer service operations and additional support functions for eCOST.com
-- Addition of new home and outdoor products and expansion of eCOST.com's proprietary Bargain Countdown(TM)
-- Enhanced real time product listing capabilities on eCOST.com through a partnership with Etilize
-- eCOST.com added 3 new Virtual Warehouses in the second quarter of 2007, bringing the total number of Virtual Warehouses to 12. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales.
Financial Guidance for Fiscal Year 2007
PFSweb continues to target total consolidated revenues, excluding pass-through revenues, of approximately $420 million to $435 million and consolidated Adjusted EBITDA of $8 - $10 million for 2007. Capital expenditures for 2007 are estimated to be approximately $3 - $5 million, excluding costs related to the implementation of new business contracts for the Service Fee Business. Achieving these targets will depend upon, among other things, achieving and maintaining the currently expected significant improvement in operations from eCOST.com and continued strong performance from our Service Fee and Supplies Distributors businesses on a year-over-year basis.
Conference Call Information
Management will host a conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on August 14, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 823-7459 and enter the pin number (9081135) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through September 14, 2007 at (877) 519-4471, pin number (9081135). The replay also will be available at the company's web site for a limited time.
Non-GAAP Financial Measures
This news release contains the non-GAAP measures Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.
EBITDA represents earnings (or losses) before interest, taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, merger integration related expenses and a loss on a sales transaction to a former eCOST.com customer. EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA and Adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital spending, stock-based compensation, merger related expenses and certain other expenses, which items may vary from different companies for reasons unrelated to overall operating performance.
Merchandise Sales
Merchandise sales represent the estimated value of all fulfillment activity that flows through PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount of such sales on its financial statements, excluding service fee revenues that PFSweb might recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating metric to allow investors to gain a more thorough understanding of its business and business volume, in addition to GAAP net revenue.
About PFSweb, Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfilment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, FLAVIA(R) Beverage Systems, Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon, Onkyo, Seiko and Toshiba primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc., visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.

[David Randolph]

A profit, for the first time since eCost.com acquisition. Profits came much earlier than I expected. Awesome results in my opinion, let's see the market response.

I'll keep holding PFSW for the long term.

[David Randolph]

I've just listened to the PFSW conference call, here are some highlights:

- 2007 full year guidance remains at $427.5 M in revenue and $9 M EBITDA. Questioned by an analyst on to why they don't raise guidance, management replied:

«2007 is the first year we've provided annual guidance in five or six years so we're being conservative, focusing on over performing not over promising.»

- Lego and Riverbed contributed to this quarter;
- The company has a new client which is a major brick and mortar US retailer, but it won't reveal the name until its website is launched, which will happen in Q3;
-  The value of the new business pipeline is now estimated at $38 M versus $25 M in Q1 2007. PFSW's market cap is $47 M;
- ecost.com now has 110,000 products for sale, with 12 virtual warehousing agreements. The company expects to add more virtual warehouses, because it improves gross margin;
- ecost.com has 1.7 million costumers on the list and had 231,600 active costumers in Q2;
- The average order value at ecost.com was $422, compared to $340 in Q2 2006;
- Costumer acquisition costs for ecost.com was $9.76 versus $13.97 in Q2 2006;
- Cash in the balance sheet currently is $16.9 M. The company confirmed all its banking relationships and credit facilities and sees no impact from the current "credit crunch" in the credit markets;
- Break even point for ecost.com is something like $29 M - $30 M in revenue. Q2 2007 revenue was $27.1 M, growing from $21.5 M in Q1;
- The 4th quarter will be the strongest of the year due to seasonal factors. We've been through a seasonally weak period.

Overall I'm very pleased with the quarterly results and the outlook for the future, as management puts it, profitability isn't the end of the road, but the start. Management is looking for margin expansion and EPS growth in the future.

I'll continue holding PFSW for the long term.

[David Randolph]

PFSW is doing a tremendous turnaround in its business and the stock barely moves. I attribute that to the general market bearishness, because in normal trading conditions PFSW would just explode to the upside.

I'll patiently wait for the stock price to reflect the improving and surprisingly strong fundamentals.

[David Randolph]

So cool, PFSW filed an 8-K form with the conference call transcript:

Conference Call Transcript

Maybe this will help putting some sense in investors heads and the stock makes a bullish breakout of the $1.08 resistance level.