Liquidity Services, Inc. (LQDT)

Specialty services; No competition.

DOD likely to continue to need an outlet to dispose of surplus or obsolete equipment. Switching costs not worth it as long as LQDT fits the bill. A low overhead, low debt, high cash flow business. Don't listen to me, try their web site, browse for product as a customer would.

I am very intrigued by this opportunity. LQDT allows shareholders to actually profit off the failure of other businesses. Every investor should consider LQDT for their portfolio.

bean1999

This became a SA pick right after I had read a story in my local paper about how they were using online auction to sell surplus equipment and were getting prices that far exceeded what they would get had they surplused it normally. Good management, no debt, govt. contract locked in - works for me!

with the 2 years contract with govt. I'd say this stock will outperform.

SA pick I'm in, in real life

They have the government contracts for scrap right now. Those contracts don't expire for 2 years, so they'll have the market. Time will tell after that.

- Government contracts provide a "moat": 48% of revenue comes from Defense contracts
- Reaction due to one bad quarter? Growth of 30% over last 3 years

Risks
- Affected by lower commodity pricing, but I bet this will be higher on the long term.

OUT PerFORM.

People love a good deal and this company had a bad last quarter, but I strive to pick stocks that have good growth potential long-term. Have you seen what stocks like Ebay trade at? This is a worthwhile buy if it grows to only a fraction of that stock. Even great companies have bad quarters now and again, which opens up windows of opportunity for those interested in investing. My only regret is not picking this to outperform last month.

The pitch for this stock can be found athttp://boards.fool.com/Message.asp?mid=27320382&bid=&...

Also, you can also discuss this stock on the Stinky Feet board at http://boards.fool.com/Message.asp?mid=27391654

Hope to see you there.

http://boards.fool.com/Message.asp?mid=27320382&resultcode=0059

Lots of room to grow.A bargain at 50% the 52-week high

Companies like these stride during bad economies... should have results within short term. Not sure about 3months, but definitely 9 months to 15 months.

27.70 by 2010

This stock has really been hammered recently. It is being pulled down either by association with other commercial website businesses or investors are worried about the renewal of the government contract. Considering the way the contract has been expanded over the years, I believe that the chances for renewal are high. Besides, the commercial inventory re-selling business seems to be taking off. Tremendous potential for the future.

Anyone betting against this stock is a dummy. The company is a secular growth stock which actually does better during times of economic slowdown due to increased transactions as major retailers try to unload inventory. The company operates in a niche with zero competition. The government has only been bettering its terms -- they are not going to lose that business because they are the best market. The company is consolidating its network effects through smart acquistion and acquiring new customer relations, as evidenced by its recent move into local municipal and state auctions. They rightly say they ARE the market for reverse supply chain goods. They have plenty of room to expand internationally. The need for warehousing for this business means they are not just a dot.com -- there are substantial barriers to entry because any would be competitor needs to own warehouses and distribution before they can even enter the market. That is a big disincentive. No way this company fails; the concept is too solid and management knows the business too well, with most having been with the company since 2000-2003.

If they lose the government contract, they are out of business. Government may cut items being sold dramatically. Liquidity services it currently begging its customers to contact DOD personnel not to destoy thousands of items that can be sold in the open market. This company is "NO" Ebay as they have an interest in what is being sold, E bay has transparancy, Liquidity Services has none.

Many complaints on Items lost, misdescribed, heavily damaged or not even in the lots being sold, bid deposits not refunded timely, false or misleading photos, wrong weights on scrap sales.