If nobody on wall street follows the company how can any of us shareholders expect many people to notice the improvements quarter over quarter year over year. People wake up in the morning with thousands of choices of stocks to buy and sell and unless the IR team/PR team and management keep doing nothing on this front the only buyers and sellers will continue to be computer based model or index fund. Layton has to do 4 things: 1)complete the buyback program 2)add willoughby to the board 3)make sure all bod's buy stock aggressively(i don't care if they can't afford it-mortgage your house)4)pay an ir guy to get the stock in the press, in front of the right growth funds, get coverage, etc..otherwise sell the company!! Layton can't be so proud...sometimes other people can help..he nees to pick up the phone and pay the price to get things done!!!
People can accuse me of being GS shill all they want, but the financial performance of this company has been downright embarrassing. As far as earnings improvement, the restructuring of the business and booking certain operational performance in a different manner does not hide the fact that the company continues to bleed real economic value and is unable to retain earnings.
Why should the stock move at all? There really isn't anything here as the business is currently structured. They aren't losing money on each addition client as taint.itch would suggest, but they can't clear the hurdles necessary to generate net income in over the next year. Does anyone out there care to disagree with me now?
Yes I have a small 'activist' position and a few of you have emailed me. lowl, I believe in your disclosure but I just don't think you are coming around. Any existing shareholder can email me and we'll try to sponsor a removal of the 'shareholder rights plan'. Leave the rights plans to companies that can actually turn a profit. I don't have enough shares to sponsor myself - I hold to acquire information and talk to management -- but for those who have held 1% or more of the outstanding shares over the past year, please give me a follow-up if you want to sponsor it.
Can you imagine what would have happened if they missed estimates, lost another client, had implementation problems etc...That is how this thing is trading. For example, if you take a look at NAVR they are estimating $9-11 million ebitda and has no debt and it is trading at a $50 million market cap. PFSWEB is just cheap. On an apples to apples comparison we should be at $3.75-$4.00. Our growth is much more exciting!!
Not having any answer for 2013 was a nightmare. The answer is "we are confident that with our current sales pipeline and organic growth of current customers we should be able to overcome the loss of Carters. In the event in the short run we need to cut some costs we do that as well. Bottom line is the loss will not severely impact our positive outlook on gross profit or 2013 EBITDA growth."
Volume for the short term may struggle to hit 10,000 shares per day. On the other hand I give the company some kudos for the quarters performance - it was excellent. They are delivering results. Will Criag Hallum crack and lower the price target just because of the drop in share price? That guy had a $13MM EBITDA target for 2013. No reason for either to drop. At $2.48 that would be a EBITDA multiple of less than 2.5 for 2013.