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gnulaw (51.57)

Geeknet (LNUX) Continues to Disappoint Non-Insider Shareholders.

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May 06, 2010 – Comments (7) | RELATED TICKERS: GKNT , BBY , AMZN

Non-Insider Shareholder Hostile* Geeknet (LNUX) Continues to disappoint. At the end of the day...

 

Q1 2010 Net loss for the first quarter of 2010 was $2.8 million compared to a net loss of $2.8 million, not including a one-time non-recurring $4.6 million impairment charge for Geeknet's investment in CollabNet, Inc for the same period a year ago. Total cash and investments, including restricted cash, at the end of the first quarter 2010 was $33.2 million compared to $39.4 million at the end of q4 2009. 


Q1 2010 Conference Call for the 3 months ended March 31, 2010.

 

 

* Geeknet (LNUX) Issues 590,000 Insider Shares...during insider blackout period?

 

7 Comments – Post Your Own

#1) On May 09, 2010 at 9:35 AM, gnulaw (51.57) wrote:

MarketEdge reduced Geeknet (LNUX)s rating from LONG to AVOID on May 7th after Q1 numbers were reported May 6th.

 

Opinion AVOID Date Opinion Formed 05/10/10 Price Opinion Formed 1.37  Score 0 C-Rate 0.0  DOWNGRADED 

 

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#2) On May 16, 2010 at 11:42 AM, gnulaw (51.57) wrote:

First Quarter Highlights:

"...E-commerce revenue increased 57 percent to $10.4 million for the first quarter of 2010, compared to $6.6 million for the first quarter of 2009.  E-commerce orders shipped increased by 59 percent in the first quarter of 2010 as compared with the same period last year..."

[6:09] May 6 Q1 ending March 31, 2010 Financial Results Conference Call [Scott Kauffman, CEO] "…I want to begin today's call by recognizing all of our employees…ThinkGeek's performance has been nothing short of outstanding. The 4th quarter results at ThinkGeek were off the charts…ThinkGeek has long been a consistent growth engine…we believe that higher growth rates are the new normal for our eCommerce business..."

 

What's wrong with this picture?

 

All Geeknet (LNUX) hiring at the CRO, COO level have [no] eCommerce background only Media. It is mind-boggling Geeknet is not bringing in top talent e.g. from Best Buy/Amazon.com...

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#3) On May 16, 2010 at 12:04 PM, gnulaw (51.57) wrote:

 

 

>>All Geeknet (LNUX) hiring at the CRO, COO level have [no] eCommerce background only Media. 

Including Scott Kauffman...all media/advertising background. One year ago (and before with Ali Jenab, the previous CEO) it was all about the Media side of the business and ThinkGeek was mentioned either only in passing.

Now Kauffman is falling all over himself about ThinkGeek...and creating exotic financial packages viz-a-viz Goldman Sachs and the best Hedge Funds in tying their [quarterly] bonuses to ThinkGeek Sales (vs Earnings)...yet, again, is hiring to the Media side of the business versus the eCommerce side...and the entire management team seems to be drinking the same Kool-Aid.

Remember, at the end of the day, as of March 31, 2010:

Q1 2010 Net loss for the first quarter of 2010 was $2.8 million compared to a net loss of $2.8 million, not including a one-time non-recurring $4.6 million impairment charge for Geeknet's investment in CollabNet, Inc for the same period a year ago. Total cash and investments, including restricted cash, at the end of the first quarter 2010 was $33.2 million compared to $39.4 million at the end of q4 2009.  

Q: Is Geeknet all about Scott Kauffman's ego and naivete and lack of experience with publicly-held companies or shareholder value maximization? 

 

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#4) On May 20, 2010 at 6:49 PM, gnulaw (51.57) wrote:

Wall Street and Non-Insder Shareholder hostile Geeknet (LNUX) shareholder value falling off a cliff...closes down 7.8% to February 2010 lows.

References:

1. Geeknet (LNUX) - Large Institutional 13D Shareholder Put Pressure On Board Demanding to Unlock Value. Where is Geeknet now 21 Months Later? Source: Motley Fool, November 25, 2009.

1a. Where are we today? (27 months later) LNUX closed at $1.78 on February 15th, 2008. This article ( Taking the Street.com ) was originally published on Monday February 18th 2008.  LNUX closed at $1.30 Thursday, May 20th, 2010. In other words, LNUX management has incurred 26.97% shareholder value destruction since Trivium made this demand of LNUX Management and its Board of Directors on February 14th, 2008. To put this into perspective think about what has changed in 25 months...See Trivium Capital Management Sends SourceForge a 13D Valentine

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#5) On June 06, 2010 at 9:53 AM, gnulaw (51.57) wrote:

Q: Why would a company whose revenues are increasingly being driven by the eCommerce side of the business not only create a new Senior Management position for that person (CRO) but then bring in a person who was effectively unemployed at the time of hiring whose background is 100% media sales?!#@*!

Note: eCommerce Revenues as a % of sales increased from 63.6% to 70.7% for the 3 months ending March 31, 2010 vs. March 31, 2009. Source: Geeknet (LNUX) Form 10-q filed 5/6/2010. http://secfilings.com/searchresultswide.aspx?TabIndex=2&FilingID=7237428&type=html&companyid=68081&ppu=%2fdefault.aspx%3fformtypeid%3d%26amp%3bindustryid%3d%26amp%3bticker%3dLNUX%26amp%3bauth%3d1

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#6) On June 06, 2010 at 9:58 AM, gnulaw (51.57) wrote:

>>not only create a new Senior Management position for that person (CRO) but then bring in a person who was effectively unemployed at the time of hiring whose background is 100% media sales?!#@*!   Reference: http://www.topix.com/forum/com/sourceforge/TEI661QLL285K73LB 

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#7) On June 21, 2010 at 7:07 PM, gnulaw (51.57) wrote:

>>and creating exotic financial packages viz-a-viz Goldman Sachs and the best Hedge Funds in tying their [quarterly] bonuses to ThinkGeek Sales (vs Earnings).

Shareholders vote with their $. Geeknet (LNUX) Downgraded, Shares Sink Further Below Liquidation Value.* 


See "Bonus Metrics for the Fourth Quarter of the Company's 2009 Calendar Year". November 2009 ref/ Q3 2009 numbers.

 

...It's all about Scott Kauffman and insider shareholder value.

 

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