Please keep your spam off this board, it is of no
I agree with some of the ledgars printed from
Frumpyi, this is a powerhouse Internet Company and the
only way to come out ahead as a short trader is to
trade around this issue.
The Short sellers Will
never hold an issue that has the Makings of the Next
IBM in Digital Downloads.
I'm not sure what you mean by "[o]ne of the board
members on Digital River's panel is the C.E.O. of
Egghead." I didn't know Digital River had a panel. Do you
mean the board of directors?
Egghead is not
currently a partner of Digital River. Go to Egghead's web
site and select "downloadable software" at the bottom
of the page. You will be transferred to "goesd.com."
That site is managed by releasenow.com, a Digital
I do expect, however, that
Digital River will provide downloadable software to
Egghead once the merger with onsale is complete. Digital
River partnered with Onsale a week before the merger
was announced. It follows that the merged companies
will stick with Digital River rather than revert to
On page 12, the company estimates the $62.3
million on hand end June will last all of 18 months! They
spent $9.5 million in the previous six months (ex.
acquisitions), so the next 18 should be something to watch. Hope
the dough is well-spent as it surely is a ton, esp.
when you factor in contribution from increasing
Anyone with a weak stomach for operating
losses should leave now, these guys must have some
Thanks Johnny T!
I've heard they are
hiring again. They have doubled their
less than a year. Was around a 100 this time
year and now around 250! And they continue to
Heard from a taxi driver that Joel is dumping
everything back into the company. Looking to make the big
hit this time.
All you bone head sure have a bad memory. One of
the board members on Digital River's panel is the
People that follow the Frumpster make dough year after
year and averages 314.66% each yr.
a Cocktail! J&B/water
The rest of the article...
Home Depot is one of the great retailers--the
"category killer" that handily drove
mom-and-pop hardware stores out of business. Who's to say it
can't do the same to pesky suppliers with dot.com
dreams? (Indeed, Home Depot is featured
issue's retirement guide. See "Ten Stocks to Grow With.")
At least one supplier, Stanley Works, the tool
manufacturer, scrapped its e-commerce plans. "Our
said, 'We would prefer it if you did not compete with
us,' " explains a Stanley spokesman. Rubbermaid,
though it intends to continue selling online, says it's
advertising or promoting its e-commerce site. "We try not to
draw attention to ourselves," one executive at
Rubbermaid told FORTUNE nervously. "It's a very
And if Home Depot gets its way, selling
power drills and fertilizer and riding mowers on the
Web will work the same way it does in the real
world--with Home Depot in
charge. "We hope our vendors
will partner with us," offers Jeff Cohen, the
company's Internet chief, when asked about suppliers
setting up shop online.
Who will rule the Web for
the do-it-yourself set? That's not at all clear, at
least not yet. "They think the Web is their domain,"
says a manufacturer who asked not to be
fearing Home Depot's retaliation. "We think it's ours."
E-Threats to Home Depot: A Scouting Report
of Home Depot's vendors are coming up with ways to
sell directly to consumers, bypassing the big retailer
entirely. Some are there; some aren't there yet;
really like to talk about it. Home Depot, of course,
isn't pleased about any of this, and would be happy if
everyone would just let it deal with consumers, thank
Inspired by all of the fine research the
participants of this board have done, I did some of my own. I
think I found a gem, fellas.
Below is an
article that was written in Fortune about Home Depot's
slant on ecommerce. Ronning is quoted. While the
article paints Home Depot somewhat negatively, the bottom
line is that the company will have to be an ebusiness
participant to succeed.
Though I have a limited
understanding of Commerce Bridge's capabilities, this would
seem like a perfect fit. I also like how this might
demonstrate DRIV's relevance outside of the ESD world. So,
what do you guys think? Any potential
Barnes & Noble has Amazon. Toys "R" Us has eToys. So
you'd think by now that Home Depot would have its own
raging bat-tle with some do-it-yourself Web
upstart. Instead, the $30 billion retailer has found
trouble on the Net in its own backyard: Ames.com,
Whirlpool.com--all Home Depot
suppliers, all planning to hawk their wares over the Web. As
far as Home Depot is concerned, a supplier with a
Website can be far
more dangerous than any Amazon.
In a letter obtained by FORTUNE, the company
recently issued a Godfather-esque directive to all
suppliers selling products over the Internet. The gist of
it is, Cut it out
or we'll cut you off. "Dear
Vendor," the letter, dated May 19, begins. "It is
important for you to be aware of Home Depot's current
position on its' [sic] vendors
competing with the
company via e-commerce direct to consumer distribution.
We think it is short-sighted for vendors to ignore
the added value that our retail stores
to the sales of their products.... We recognize that
a vendor has the right to sell through whatever
distribution channels it desires. However, we too have
right to be selective in regard to the vendors we
select and we trust that you can understand that a
company may be hesitant to do business with its
All this to stop a couple of glue guns
from being peddled over the Internet? No, it's a bit
scarier than that. What Home Depot rightly worries about
is losing control over
its customers. If they can
go straight to the manufacturer, why would they need
a middleman? And if the manufacturers can sell
size-12 nails to the Bob Vila crowd
directly, why deal
with Home Depot?
By now, it's abundantly clear
where the Web is heading. Though e-commerce still makes
up less than 1% of the total retail market, it is
growing fast. According to some
sales this year should more than double, to around $36
billion--and manufacturers are eager to cash in. "Every
manufacturer we talk to intends to put a store on the
Internet," says Joel Ronning, CEO of Digital River,
provides back-office e-commerce services to both suppliers
and retailers. As Home Depot lumbers its way toward
creating an e-commerce site ("It should be
sometime this fall, or maybe this winter," a spokesman
says), its suppliers are already there or will arrive
imminently. Rubbermaid.com sells such items as
ActionPacker Tool Box for $10.99; Ames.com offers up a
Wrecking Set that includes a drill hammer and safety
goggles for $35.95. Another vendor, Whirlpool,
launching a joint venture with Hearst and Boston Consulting
this fall, called Brandwise.com.
In the power
game between retailers and suppliers, the so-called
big-box shops like Home Depot have always had the upper
hand. You want to sell hammers, you do
Depot wants. But the emergence of vendors' retail
Websites is changing the balance of power. For example,
Ames' Easy Roller wheelbarrow couldn't get
Depot's stores because it was the wrong shape for its
shelves. It's now selling briskly on Ames.com for $124.95.
"The Web is the great equalizer," says
marketing director Cary Gregory.
This is not to say
that going up against Hom