Shorts May be Wrong on this One: From BBRS
``Fatbrain.com added 800 new corporate partners during the quarter, including a multi-year deal with Lucent Technologies,' said Benjamin. ``In addition, Microsoft and Fatbrain.com extended their relationship with the launch of a new-online bookstore, the 4th Fatbrain.com store created for Microsoft's online properties.
``In our view, online print-on-demand documentation was surprisingly strong in the second quarter, representing 10.8 percent of sales, versus 5.5 percent in the first quarter,' said Benjamin. ``We estimate that print-on-demand has margins 2 to 3 times the normal book business, and represents a compelling eSourcing opportunity.
``We believe Fatbrain.com is solving the corporate 'headache' of documentation distribution and expect the company to expand its eSourcing services over time,' said Benjamin.
Further:
Content providers from the broad publishing community already have signed up to distribute new and existing content as eMatter. These include Macmillan USA, McGraw-Hill , O'Reilly and Associates, The Motley Fool, Salon.com and the Coriolis Group.
Further:
We have a market cap of <$225M or < 8X annualized sales = absolutely bargain basement for the potential opportunity. 1% of the present opportunity is $1 billion. Perhaps we will shortly hear of deals with Yahoo, AOL for joint ventures - this would quell the "What about Amazon copying their model" talk. Besides, Amazon has no experience in the publishing business.
get shorty - The main business is called outsourcing - it's a great business. |
