Liquidity Services, Inc. (NASDAQ:LQDT)

CAPS Rating: 3 out of 5

The Company is an online auction marketplace for wholesale, surplus and salvage assets. It enable buyers and sellers to transact in an efficient, automated online auction environment offering over 500 product categories.


Player Avatar TMFTwoCoins (48.98) Submitted: 2/4/2013 10:57:57 AM : Outperform Start Price: $32.73 LQDT Score: -111.64

Not a sexy business, but who cares as long as it makes money. With a 20% sell off, I'll bite. Expecting a long term winner, and got it at a discount.

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Member Avatar TCNFool (< 20) Submitted: 2/12/2013 12:10:23 AM
Recs: 0

Even after taking the hit, it's still at 20x earnings and first quarter FY13 was horrible. Top line looks good but bottom line has been all over the place. What's the case for it to go up? Even if the two analyst estimates for FY14 are right, it's still at 15x+ PE. Seems like the sell off put it where it is supposed to be on a fair valuation, not at a bargain price.

Member Avatar TMFTwoCoins (48.98) Submitted: 2/12/2013 1:30:30 PM
Recs: 0

I see a forward P/E of 12.3, and here's the case I see for LQDT right now.
Its TTM price to earnings is about half the industry average. Its 3 year average growth is over triple the industry average. It's operating margin is over triple the industry average. Its net margin is double the industry average.

It's growing revenues consistently, bringing home juicy net margins, and doesn't have a ton of competition. Maybe me wording it as "at a discount" wasn't the way to say it. But I like LQDT as an investment going forward, and I'm glad I bought in after the 20% discount.

Member Avatar TMFTwoCoins (48.98) Submitted: 2/12/2013 1:31:45 PM
Recs: 0

And I did it again... * after 20% drop*

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