Hi Glenn,
I have to say that despite the small loss, I am MUCH more enthused about the company's prospects after listening to this call than I was after the last conference call. David gave a great overview of the business and gave a lot statistics on what is driving their growth.
In particular, the detail about improving merchandise revenue is very encouraging. In addition, their desire to leverage their existing membership into the early years of marriage is something I have wanted them to do for a long time. There are a host of expenditures such as new house (inspectors, remediators, roofers and other home improvements, landscapers, mortgage companies, insurance, etc), new car, etc that may lead to a lot of advertising opportunities. With 90+% margins on online advertising, this is a good strategy.
I am planning on buying more stock should the price get cheap enough. I will probably try to get some more in the next week or so.
I would recommend that you listen to the cc if you have time.
Take care,
Tom |
