Digital River, Inc. (DRIV)
The Company provides outsourced e-commerce solutions globally to a variety of companies primarily in the software and high-tech products markets.
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Will benefit from Web 2.0 build out
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a global leader in e-commerce outsourcing, having built, managed and grown revenues for more than 40,000 clients since our inception in 1994. Delivers e-commerce sites based on best practices for companies like Symantec, Motorola, 3M, H&R Block, Novell, Autodesk, ACT! and Staples.com and on the works with Microsoft for delivering the new OS Vista
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11/20/06. Navigate on over to Yahoo Finance, request a quote on the River, and then click "Competitors". I spent a lot of time this past weekend looking at my recs and at other stock opportunities and ended thinking DRIV, despite its run-up over the past year, is an awesome investment.
One thought that came was that DRIV, as MSFT's internet download provider of choice, is a way to play MSFT's future income stream from Office, Vista, and Zune.
Just after Thanksgiving, 2005 the River slumped. Perhaps the weakness in DRIV the past couple of session's presages another slump this year. Take advantage of the buying opportunity if history repeats itself.
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Thought of as a middleman for downloading mostly anti-virus software, the ever-present short-seller has been consistently wrong on this stock for more than five years. And they still don't get it. Valuation remains at about 1/2 of what it should be given its cash flow, market position and growth outlook.
DRIV is a dominant provider of marketing and back-office operational services for selling software over the internet. Broadband adoption multiplies DRIV's potential, allowing for ever-larger software programs to be downloaded rather than purchased at retail, while also expanding the end-user customer base. The pct of software downloaded versus purchased at retail remains low, but the incentive for software publishers to sell downloadable versions (and earn better margins) has never been stronger. Until 75%-80% of all software is sold as a download, DRIV will remain a growth stock.
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Online software sales - claim to fame is it's ability to market internationally via localized online websites. Proof that is has value is Digital Rivers deals with the biggest software sellers.
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The large drop in the price of Digital River, last week, made this company's stock very attractive. In a short time, Microsoft and Symantec business will be back at forecasted levels and new business is constantly coming through the door.
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This is the best e-commerce firm around. Look at their track record, look at their financial performance, look at their ever expanding network of partners (like Symantec, Microsoft). The company is bracing itself for a leap forward. Technology-wise they're doing the right things, building their products on best of class Oracle-Sun-Cisco stuff.
Although analyst Sasa Zorovic of Oppenheimer's did make some good calls in the past, in the case of the recent downgrade of DRIV he's way off. DRIV's best days are yet to come!
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Digital River is the best little eCommerce company no one paid attention to. Using aquisitions to grow an intentional business, the companie should double down the S&P 500 over the next half decade.
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Beaten down, i think it pops to 25.
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The company has a full offering for e-commerce and is pushing into new areas, like online marketing. As companies move toward global ecommerce, DRIV is in a great position for growth.
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Several big contracts in line such MS Vista, Adobe etc
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A well-run company in a growth industry
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Currently oversold technology services company will be raised back to better valuation relative to it's strong potential for growth in sales this year.
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The infrastructure software is a rapidly consolidating market. The company is likely to be bought as it is a profitable and fast growing business.
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Outstanding management
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Digital river software
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they got the download market wrapped up
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Company still gets ~45% of its revenue from a single customer (SYMC) which is increasingly lower margin revenue as well as vulnerable to replacement by SYMC. Furthermore, the company is not committed to "hard-goods" e-commerce and has fallen in love with their historical success despite few growth opportunities there.
Furthermore, the 2006 bull run for this name was undeserved and the 2007 bloodletting will find the true value of this asset.
Recs
overpriced and thinly traded

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