What in your judgment makes VUSA a value play? I've been watching it all year long but couldn't see a reason to buy at $25 and can't see one now at $8. It seems to me the lack of value arises from these factors:
(1) derivative nature of the web site (there are tons of similar e-sales department store wannabes)
(2) lack of profits (to be sure, few have them)
(3) questionable hard asset valuations (what does VUSA "own" except a search function and vendor contracts which could be here today and there today and over there at another site today, etc. etc.)
(4) the presence of behemoth, better capitalized and far better known competitors (AMZN, AOL, EBAY etc.)
(5) ease of entry for new competitors, including direct retail e-commerce initiatives by many of VUSA's vendors (it just isn't that hard to create sites like this), and
(6) the absence of anything unique and protectable, like a patent or valuable trademark.
I'm not knocking VUSA. I just can't see the value no matter how long I look. What am I missing? |
