Feltl & Co upgraded ValueVision Media (NASDAQ: VVTV) from Hold to Buy with a price target of $3.00 (from $2.00).
Felt issued a Strong Buy in April 2011....Downgraded to a Buy in Aug 2011....downgraded to Hold in Nov 2011....now they upgrade to a Buy....maybe a Strong Buy after earnings? (then a really, and I mean a really really strong buy at Christmas) LOL
I think marubozo has it right with the carriage cost reduction. This should be enough to drive the company to profits in 2013. I think the team has been largely ineffective over the past 12-18 months with merchandising and tired programing being the root cause of the company's lack luster performance. We are perhaps a little under priced at this level and I believe we will break the $3 barrier by February latest. The real opportunity if the team can get energized is next year when it delivers a profit .
I did not read Feltl's upgrade so don't know what they saw.
What I see is $15M in carriage savings that begin January 2013 and continue going forward. That is a BIG deal.
The other BIG deal is ASP that has declined from $235 to $100 and still managed to keep the lights on in Eden Prairie. Put another way...at the higher ASP we approached $800M sales in 2007; with 72M homes and those homes cost @ what we spent in 2012. As atrocious as KS & Team have been on CE and the 5 Year Plan....if they had been truly abysmal....sales should have dropped to $400M with that type decline in ASP.
What we have yet to see is any topline excitement (ie 8%) that should be happening now.
The future of ShopNBC has not looked brighter believe it or not! Continued carriage fee reductions and topline growth that is not offset by larger, future ASP reductions (LT they want ASP of $75) will finally allow ShopNBC to be successful. 2013 should be its most successful year in its long and storied history (based on operations).
fastmoney..if i may..iam also as you say,dead in the water.i think this is shorting at its best...don't forget there are things on the horizon in '13..but the truth is they missed revenue again in the 3rd quarter,against a weak year ago comp..evn though there loss was less...i think investors are a lil nervous about buying til some positive gowth revenue takes place...even though i feel i should be buying here,,i am also feeling like the rest of investors here..they did say on the conference call..they were about 12percent down already on 4th quarter..because of storm sandy..i think good things are to come...but we will not see a signifigant rise in pps...until the hadgies and big money comes in...may be towards end of dec...but by end of jan,for sure as carriage costs lower and top line revenue increase...all imho