How many people think that they are going to dump (sell) the distribution business or decide to run it as a discontinued operation (it that is even possible) by April 1, 2014 ?
There is so much attention on eCommerce, is distribution just getting in the way of clean numbers, or would the valuations of dumping the distribution business do disturbing things to the balance sheet if they were to try and dump it now? i.e. is it too early?
Lastly, when they bid for the Army/Navy exchange job, who did they bid against (i.e. are they bidding against mid-sized public companies where I can look for comps on a E commerce centric focused model.
I don't see why they would want to sell their distribution business when they're touting growth in ce&a distribution sales, especially as they lap strong FY2013 qtrs. It's software distribution that gets blamed for the sales shortfall this 3qtr and the need to revise guidance for FY2014.
In the short-to-intermediate term, this share price seems to me to be a trading game, subject to whims of market contexts. My opinion (hold and/or accumulate) is that fundamentally this co. is doing fine--actually outstanding--as transitions from its past business, which to me feels like revisiting a really bad hangover.
I would think distribution is an integral part of the E commerce business. It's what has to be paying the bills for the warehouses etc. I would think there is little chance they dump it anytime soon or at least until E commerce and associated business can pay the bills.
The first time Willis brought it up during his list of 5 or 6 things to focus on I didn't think too much of it. But then towards the end of the Q&A when he was asked about it, I sure got a vibe that says they are considering selling it. I can't imagine they would do that but maybe that is how they will fund the upcoming (if there is one) acquisition.