VistaPrint Limited (NASDAQ:VPRT)

CAPS Rating: 2 out of 5

The Company is an online supplier of quality graphic design services and customized printed products to small businesses and consumers worldwide.

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Member Avatar toyotamoney (< 20) Submitted: 1/29/2014 9:24:54 PM : Outperform Start Price: $52.41 VPRT Score: +13.43

Leader

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Member Avatar ShawnRobinson (65.81) Submitted: 3/3/2012 7:23:53 PM : Outperform Start Price: $40.08 VPRT Score: +17.91

Initial take - sure looks like it would be a good fit for Wal-mart or Staples. Even with the whole Dutch company poison pill thing.

http://blogs.fool.com/ShawnRobinson

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Member Avatar JTMcGee (35.84) Submitted: 11/5/2011 2:25:53 PM : Outperform Start Price: $35.99 VPRT Score: +23.00

One of the few go-to places for printing online. Offline print shops can't compete with VistaPrint. They'll either have to buy from VistaPrint and become a pure middleman or surrender their business to a less expensive, more efficient, online printer like VPRT.

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Member Avatar WildTing (85.33) Submitted: 9/1/2011 8:20:49 PM : Outperform Start Price: $27.82 VPRT Score: +68.46

I used Vistaprint to print brochures, banners, and business cards for the Tremore Breeze Smoker. Then I saw our local bubble tea shop pull their frequent buyer card out of a Vistaprint box. I figured them to be one of those dot bomb type companies that were operating on a “spend venture capital money” business model, but when I checked them out they were very profitable with a PE ratio in the teens. My hope is they’ll consolidate a fragmented industry and make me some cash.

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Member Avatar ATsykora (77.29) Submitted: 8/22/2011 12:34:51 PM : Outperform Start Price: $25.96 VPRT Score: +77.30

The "Bad news" is in and some more, the stock price has been reset and from current levels it should outperform the market

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Member Avatar ayaghsizian (95.28) Submitted: 8/1/2011 10:09:48 AM : Outperform Start Price: $27.07 VPRT Score: +89.03

price drop

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Member Avatar tcampbellla (80.09) Submitted: 7/29/2011 10:32:59 AM : Outperform Start Price: $28.70 VPRT Score: +75.76

I like it!

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Member Avatar Calinvestments (94.89) Submitted: 5/13/2011 1:40:15 PM : Outperform Start Price: $52.20 VPRT Score: -24.81

This is a small/mid cap high growth stock that should outperform the S&P during the bull market.

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Member Avatar ManOnTheBeach (< 20) Submitted: 1/31/2011 2:30:48 PM : Outperform Start Price: $50.85 VPRT Score: -28.13

Although an early adopter of the web as a marketing tool, VistaPrint hasn't rested on its laurels. It continues to experiment with internet marketing and printing products, and is adept at getting the most out of every visitor to the website. In the long run, the advantage it has built in its niche will make it difficult for a competing brand to arise. As a bonus, a recovering economy will give it an added boost in the next year or two.

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Member Avatar Reddrummer (92.24) Submitted: 12/16/2010 1:58:38 PM : Underperform Start Price: $42.43 VPRT Score: +6.26

Dont like how they do business, see luvb2b's analysis.

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Member Avatar FlashNSizzle (56.63) Submitted: 9/20/2010 11:32:32 PM : Outperform Start Price: $37.37 VPRT Score: +0.07

This account tracks the fast-growing shakers and movers and some of the riskier stocks on my watch list.

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Member Avatar nelsoncd (45.20) Submitted: 8/11/2010 9:40:09 PM : Outperform Start Price: $29.82 VPRT Score: +34.70

great growth, low debt, recent price drop makes it a good time to buy.

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Member Avatar 2gud2btrue (63.95) Submitted: 8/11/2010 8:00:15 AM : Outperform Start Price: $30.72 VPRT Score: +33.26

Added for further research.
Technical jump of 20-30% likely in near future

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Member Avatar BMunkers (57.04) Submitted: 8/10/2010 4:05:39 PM : Outperform Start Price: $30.72 VPRT Score: +33.26

My parents own a small business and use VPRT to create all sorts of advertisements. Seems to be pretty popular right now.

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Member Avatar TMFElevenOClock (53.28) Submitted: 8/9/2010 1:19:41 PM : Outperform Start Price: $32.25 VPRT Score: +26.40

Original rec:

http://www.fool.com/investing/high-growth/2010/08/06/todays-buy-opportunity-vistaprint.aspx

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Member Avatar josephwrichards (74.59) Submitted: 8/6/2010 2:38:16 PM : Outperform Start Price: $32.67 VPRT Score: +21.50

Price is currently depressed, a good time to get in as the fundamentals of this company are excellent: 1 year sales growth of 30%, 5 year sales growth rate of 50%, 1 year net income growth of 22%, current ratio of 2.3, total debt to equity ratio of 0.02!, gross margin (TTM) ratio of 70.7%, return on assets & investments superior to industry.

Plus I like the company. My family has ordered 10+ photobooks from them and they are always high quality…did my wedding book through them + xmas cards, etc.

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Member Avatar Maribaza (95.04) Submitted: 7/29/2010 1:35:13 PM : Outperform Start Price: $30.75 VPRT Score: +32.85

83,77,83
58,42,40

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Member Avatar amoxycillin (50.93) Submitted: 7/29/2010 11:34:00 AM : Outperform Start Price: $32.20 VPRT Score: +22.10

Awesome low price @ $31.98 its almost at a 52 week low

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Member Avatar bfaulkner87 (< 20) Submitted: 11/16/2009 9:56:42 PM : Underperform Start Price: $55.05 VPRT Score: +63.54

Vistaprint (VPRT). Currently trading at about 40x p/e, which, despite the fact that the company is growing its top line quite well, is not going to produce a meaningful return for long-term investors. What's interesting is when you actually take a look at those earnings the price becomes even more ridiculous.

First, and not too pressing an issue is the fact that their tax rate is roughly 8%. The tax rate for corporations in the United States is 35%. It’s based in Netherlands but does the majority (~60%) of their business in the US. If the Obama administration proposes any material crackdown on corporate tax evasion it seems these guys would facing a much higher tax rate.

The second, and much more concerning element of their earnings comes from 'referral fees.' When you order from vistaprint.com after you fill out your credit card info there is a display button that says, "save $10." If you click on the link your credit card info is automatically sent to a third party, Vertue Inc. and you’re charged $14.95 every month without notice or receipt.

They address this on their latest 10-Q saying they derive a portion of their revenue from third party referrals to the amount of $5.1 and $7m in Q3 of 2009 and 2008, respectively. They follow it by saying that in the future they expect the referral revenue to “decrease nominally, perhaps to zero.” http://moneycentral.msn.com/investor/sec/filing.asp?Symbol=VPRT

Vistaprint downplays the referral revenue’s significance by comparing it to their revenue, not their net income. In the latest quarter this amounts to 3.5% of revenue and they predict that it will account for between 2-4% of revenue going forward (assuming there's no legislation banning this practice). However, there is no cost associated with these referral fees and they flow down to the bottom line unaltered. So in the latest quarter on a net income of $12.9m about $5m of that comes from these referral fees. The insubstantial 3.5% of revenue is a whopping 36% of pretax income....and that's just in this quarter. Over the last 12 months Vistaprint has generated $25.2m in referral fees compared to $61.1m in pretax earnings. That’s 41.2% of their annual pre tax earnings. For the fiscal year ending the same date in 2008 their referral fees were $27.6m on pretax earnings of $44.1m or an incredible 62.5%.

There have been thousands of claims against Vistaprint and the company doing the referral business, Vertue Inc. Jay Rockerfeller, Chairman of the Senate Commerce Committee, is putting the heat on the latter company to come clean about its shady practices http://commerce.senate.gov/public/_files/52709GaryJohnsonVertrueLetter0.pdf .

Additionally, as of November 6, 2009, Senator Rockefeller requested the same information from Vistaprint itself. The committee is set to have a hearing on November 17th on the issue, which could serve as a catalyst. http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=1c0794dc-94a7-4527-9ebe-6b2b2d5a8c59&Month=11&Year=2009

The first “sample letter” link after the press release is directed specifically to Vistaprint.

If you eliminate these referral fees, which are at best poor business practices and at worst, illegal, and apply a reasonable tax rate given that 60% of their business is done in the U.S. their legitimate earnings are about $22.5m on a company with a current market value of $2.3 billion. So the lofty 40x earnings actually becomes about 100x earnings less referral revenue at a 35% tax rate.

To make things even more interesting their CEO, Robert Keane, has sold off 88.7% of his stake in the company over the last 12 months two of the largest sales--87,800 between 5/22/09 and 6/1/09, and 44,500 on 11/5/09--coming within 1 week of the letters from the Commerce Committee to Vertue 5/29/09 and Vistaprint 11/6/09.
http://quote.morningstar.com/insider-trading/Insider-Activity.aspx?t=VPRT

Keane seems like a savvy businessman. He grew his business from 6m in sales in 2001 to 520m in sales in 2009. I’d follow his lead and sell VPRT common at anything above a 20x non-referral, fairly taxed earning power, or roughly $12/share. At $54 there is significant downside potential.

This is all, of course, assuming the government doesn’t impose a fine upon Vistaprint as they did ValueClick for similar practices last year to the amount of 2.9m (and they didn’t even forward credit card info!). In which case Vistaprint might have further to fall.
http://www.ftc.gov/opa/2008/03/vc.shtm

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Member Avatar feparkerche1 (< 20) Submitted: 8/18/2009 10:13:18 AM : Outperform Start Price: $42.39 VPRT Score: -50.74

Good: Dynamic, cutting edge. Bad: Maturing

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