A new TV star is born, shoppers everywhere are SAVED.....
VVTV Hit $57 in FY 2000, and is now a $0.30. Who will fill their shoes and save the home shopper if/when they take the final plunge off the cliff? With home shoppers cringing in fear for the withdrawal of their hero …. who will help shoppers fill those long days of shopping……
Can super hero iQdoU handle this job alone. Will frequently re-branded QVC handle this important job? With it’s 1 BILLIONTH shipment in 2007, but now planning to layoff 700 workers, is there oxygen left in the tank?
Wait, who is this newcomer to the fray? Welcome HSN Inc. to fill their day. Home Shopping Network, INC????? Well not quite new. IACI shed $16 per share or half their value spinning off HSC, only to see it start at $15 per share and dive to $1.40 in less than 4 months. What a spin-off!, But wait, now a remarkable dead cat bounce right up to $7.30 in three short weeks. What is going on here? Will it raise back to the $15 it parted ways with IACI?
Hmmm, everyone who shorted this the last month has gotten burned and burned badly. Since it’s a small cap, whoever is snapping this up can probably keep pulling it enough to attract others to it like moths to the fire. Maybe it is rich VVTV execs, or embarrassed IACI execs. But rising, retail??? Catalog / TV retail? in this economy? In this credit market??? Some shoppers will max their credit card, some will lose their jobs, (from watching TV all day), and others will find better things to do like fulfill their New Year’s resolution to exercise, or their lifelong dream to live on a cruise ship at less per day than most apartments are renting for.
Who , who will come to the aid of the addicts spending all day watching the shows and buying, buying, buying, while the electric bill from the big screen TV goes unpaid. Cold, so cold huddled under their blankets searching for warmth as their furnace starves for gas or oil. Save them, someone help these poor hapless folks!
Sure HSN's margin is low since they are buying this stuff on the cheap. BUT....they are not making a profit since the spin off. Insiders who got the bulk of the shares will be selling them as soon as the tax structure allows them. Negative profit margin, negative quarterly growth, net loss for the quarter, 10% shorts forced to cover.
I have no idea why this thing is rocketing up this fast. Don't follow me into the fire fellow moths, but give a shout once in a while and see if I'm crispy and done yet. Why would I short it if I don't understand it? Not the MF way for sure. Guess its envy or jealousy because I didn't catch the rocket up. Envy is bad, and usually doesn't help any, but what the heck. Maybe real world fundamentals will kick in. Maybe a month from now this beast will double.....or, just maybe, just maybe......... the flame will go out, freeing all the months from the flame..... and shoppers everywhere will emerge out into the sunlight to work on their tan or look for a job.