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Liberty Interactive Corporation Message Board

  • marubozo100 marubozo100 May 7, 2009 7:51 PM Flag

    QVC Q?

    Why does this trade at < 3 trailing OIBDA? (free cashflow)??????

    It is a mature business but it throws off more cash than retailers with much higher multiples.

    eg: BlueNile ttm OIBDA is 11.8M and it trades 54x? Sales declined 10%.

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    • Great question - - It was a screaming bargain in the $2 range and there is still an opportunity for a 2 or 3 bagger here if the sales rise as the economy begins to recover...Of course, since employment numbers are going to lag behind the rest of the indicators of the recovery, people might hold off on discretionary spending, but hopefully if we are really getting out of the worst part of the economic pullback, things should be shaping up nicely for QVC's busy season in October/November...

      Here's hoping - - I would love to see a pullback to the $5 range, so I could get back in.

      Good luck to you..