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ValueVision Media, AŞ Message Board

  • retailexecutive retailexecutive Feb 3, 2014 11:44 AM Flag

    Clinton Group if Wet Seal is the template for demonstrating success

    I would keep the slow paced team in place here. The company is still in turnaround but it has been turning. I believe it should be and could be faster but I really doubt that CG is the answer. It would be good to see some new outside blood on the board that would have real share holder value as their focus but I doubt seriously that these are the guys to do it. Just look at WTSL always bad and arguably getting worse. What happened to Marubozo ? I miss his comments . The key is how well on a relative basis VVTV has performed over the last quarter. They have not yet demonstrated that they are worthy of floating any kind of new equity offering no matter what the reason. They could really send this back to the high 3 to low 4 area.Need to show performance. i really do noot think the CG will get any traction at the meeting but I am sure they will grill the board and call some attention to the real progress made to date.

    Sentiment: Hold

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    • Program line up and hosts are a real issue there. Compare to the other TV shopping channels, it is pretty dismal.

    • Program

    • well put. clinton isnt the answer, but a more engaged board would help. i do think everyone needs to be prepared that once clinton is pushed to the side that VVTV may look to raise money. the discussion of lack of investment in the company over the last few years have been growing on the conference calls. that doesnt necesarily mean equity raise but it likely will mean more near term expense which will likely bring down future analysts estimates (even if the investment is something the company needs and will accrue longer term benefits). clinton group's sloppy approach, although likely to be unsuccessful, will hopefully encourage the board to set higher expectations for the mgmt team as I hope they realize that they dont operate in a vacuum to serve their own interests and that instead they serve the shareholders and shareholders can try to hold them accountable.

    • @retailexecutive - "the company is still in turnaround?" Seriously? After 5 years? Lots of people on this board like to use technical stock analysis on this company but with retail stocks a better way to assess its current and future performance is to look at the details of their business, things like their inventory, their margins and of course sales and EBITDA. For a TV shopping channel, I suggest people look at the content of their airtime. Airtime is their only asset, it's their equivalent of a brick and mortar retailer's stores. ShQp's airtime is still a mess after 5 years of this management. Still way too much Watches and Jewelry and not enough Home goods and top tier national brands. Stock price responded to a decent quarter but where are the top line sales increases? Five years ago sales were nearly $800M, today $600+. End of story.

      • 3 Replies to mktresearch41
      • MR...aka the Toxic Taxin Man. 5 years ago the cost of distribution was substantially higher per home than it is today AND ASP was triple what it is today.

        Today...the distribution cost is still too high but MUCH lower than it was; ASP has dropped to $80 and customer counts are up 25-25%.

        Since you are so big on details and fundamentals....why do these facts continue to evade you....

      • I was speaking of fundamentals not TA if you want to look at TA it is a hold . By the way so the fundamentals add up to a hold. Turnaround in my mind is over when the company returns to solid growth. They have been on the verge of that for sometime now. The company is fundamentally stronger than when it was trading for $8 in my mind. I will not argue with some of your points about failed strategy. I will say the Clinton Group does not appear to have a track record of offering a big change to the positive. There are some OK personalities they are showcasing but at the end of the day this is not a Briggs ? Costello team nor is it a Mindy Grossman answer to the problem and opportunity. CG will get very little in actual votes. If you want to speak about adding a stronger board member but i don't see it coming from their august portfolio of talent. You might want to review the CG management change at WTSL. Not stellar.

        Sentiment: Strong Buy

      • Again five years ago the pps was twenty cents. So if you wish to bring up the past with revenue numbers then you need to look at the balance sheet then to now and also other dynamics that were not there five years ago that are there now. New management, Internet sales, mobile sales, resolved electronic issues, carriage cost reductions, new branding name with no more costs associations, HD channels, New customer growth, increased number of homes, changes to product mix to level out quarters more..., to me progress has been made. This year is the year management needs to show revenue and profit improvements with the changes they have made. Keep in mind all this was done during a period where the economy was challenging to say the least. With the economy improving VVTV has a bright future. VVTV is no longer just a TV home shopping network and that is a huge difference in this age than five years ago. So for now I say we leave this management enjoy their success in a year we should see the fruits of their labor and not let CG come in to ride on this managements hard work. KS and Team do need to show shareholders that now is the time to bring shareholder value in the quarterly reports and they can start that with the up and coming 2013 Q4 numbers.

        Bottom line we have come a long way from five years ago and need to understand where we came from, at the door of bankruptcy, to where this management team has brought us to today..., progress on all but the revenue front, which should take care of itself in 2014. All JMHO.