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FreeMarkets (92.77)

VistaPrint - Government Business Model

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July 21, 2010 – Comments (4) | RELATED TICKERS: VPRT

Being a customer of VistaPrint (NASDAQ: VPRT) I get their email specials.

Well, it seems VistaPrint decided to take a page out of the U.S. Governments playbook and make a business model out of it.  They keep offering a ton of stuff at discounted prices (e.g. like the gov't stimulus for cars and houses).  At first I bought a few items, then maybe an item a month later.  Today, everything goes right to email trash bin.

I recommend if you own this stock to SELL THIS STOCK!  Their emails are coming more often, with stuff now being given away for free - just a nominal shipping charge.  They can not be making much money and with a $2.1 billion market cap and a P/E already over 30, IMO are overpriced until they get down to about a P/E of 12 (assuming its because they aren't going broke).

I wish CAPS allowed you to take a SUPER risk and double down on one or two stocks, because this is one stock I'm sure in the next six months is going to tank.

4 Comments – Post Your Own

#1) On July 22, 2010 at 10:20 AM, vprtwatcher (88.16) wrote:

Piece of advice: Have a look at their organic revenue growth record before binning this stock, and also consider their percentage gross margin.  It is the fact that people love deals that are "too good to be true" combined with a masterly (though admittedly, like the emailing, very aggressive) ability to upsell + the most sophisticated printing plants in the world (low cost position) which keep this one going.  A category-killing supercompany! 

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#2) On July 29, 2010 at 11:04 AM, XMFSmashy (99.91) wrote:

Nice call, FreeMarkets! That was some great scuttlebutt on your part.

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#3) On July 29, 2010 at 3:46 PM, FreeMarkets (92.83) wrote:

Thanks TMFSmashy.

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#4) On July 29, 2010 at 4:47 PM, outoffocus (22.80) wrote:

I agree. I now practically ignore the emails now. I always thought they emailed too much. I literaly get an email from them everyday talking about giving something away for free. They then act like its some kind of special. If they are giving something away every day theres nothing special about it.

 I've ordered business cards from them before but I have to change now because I'm tired of seeing other peoples business cards with the same background.

Either way good call. I didnt even know this company was publically traded.

 

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