Gaiam, Inc. (GAIA)

johnmuirjr (< 20) Submitted: 2/08/08 11:51 PM : Start Price: $23.34 GAIA Score: 40.31

Over-priced already. Market focus is too broad and market share is being diluted by increased competition, lululemon, and minor players, who are more innovated in delivering product to their core consumers. Ecommerce and catalogs, the major revenue growth channel for Gaiam, has loss over $7M dollars for first 3Q's of 2007 and has not generated any profit in 6 years. B2B channel is severely impacted going forward as major retail account, Target, has eliminated fitness DVD's and Gaiam store in store concept is in test mode and gives up huge margins to control real estate. Wal-Mart and others are backing out core profit center as well, fitness DVD's.

Like Gaiam was late to the party on solar, their party's over and the Real Goods play is only about taking $20M out of the equity buy from new Real Goods stakeholders, rather than leaving it in Real Goods and using the capital to grow the business.

Gaiam should value at $12, not at $23.62 and stop mailing catalogs to inflate revenue growth.

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