Use access key #2 to skip to page content.
$5.04 0.19 (3.92%)
12/3/2008 3:59 PM

Gaiam, Inc. (GAIA)

CAPS Rating:
*

The Company is a lifestyle media company providing a selection of information, media, products and services to customers who value personal development, wellness, ecological lifestyles and responsible media.

View All Commentary (GAIA)

Recs

3

Avatar pencils2 (99.77) Submitted: 8/23/06 9:23 PM : Underperform Start Price: $10.23 GAIA Score: 17.86

There is a tremendous amount of small competition to Gaiam, according to my Dad (who sells meditation benches). He said Gaiam was very difficult to work with and overall is not that great of a company. So, that's the business aspect.

Now the valuation/financial aspect. Good amount of cash with no long-term debt, that's pretty good. But a P/E of 120+, a forward P/E of 34, and analysts are estimating nearly 28% annual growth for the next five years? I highly doubt that Gaiam can meet those estimates. With the industry P/E average being 29, Gaiam will have to fall or have a blowout quarter. I don't think the business model is that great, so I'm betting on a fall. High P/E stocks are getting killed, and there is no reason Gaiam can escape a high valuation.

Report this Post Replies: 1 | Reply | Permalink

Avatar LaughingRaven (98.33) Submitted: 9/15/06 8:16 PM

Recs: 0 | Rec This

I like your valuation analysis, and would definitely agree that the new age yoga-for-meditation crowd wouldn't be especially loyal to a (relatively) big company when a smaller local company can suit their needs. As for the pop-culture urban yoga-for-fitness crowd, they're just as likely to flock to the big big names, like Denise Austin or Nike. Gaiam just doesn't have a hook that will keep their customers coming.

As for me myself personally, I own several Gaiam DVD's, and I've been a little disappointed to see that they're not coming out with anything really new or different.

Report this Post Reply

Featured Broker Partners

Sponsored Links