Gordy
Here is my ASDS view, from a philosophical approach, if it will help to allay your worries and concerns:
The E4L contract while significant in the year ago period, amounts to nothing more than a hill of beans at this time. With the explosion of E-tail this year as compared to last, and the introduction of Sears and Sony as clients, I doubt that there's a whole hell of a lot to be worried about in the Q over Q comparison. According to recent statements by Sears, the increased revenue generated via their website due to the introduction of Craftsman Tools (not to mention Wishbook), should enable both entities to prosper quite handsomely in Q4 -making year ago numbers pale in comparison.
But the real reason to get excited about this company goes far beyond a single client. The (obviously) unrealized value of ASDS lies in their unique BUSINESS MODEL , one that relies not only on a customizable internet software solution, but moreover, on fully integrated marketing with REALTIME support, REALTIME inventory control and labor management service. This enables the corporate client to merge their business onto the Web seemlessly, and with substantial return on investment almost immediately. By co-venturing with ASDS, mid-sized corporate clients not only establish a presence on the web, but they are able to significantly reduce risk as well as the cost of marketing, distributing and carrying merchandise. By taking a 'wholistic' approach ASDS maximizes efficiency while containing the expenses associated with the management of personel in the distribution arena.
By utilizing the ASDS BUSINESS MODEL and their prior experience in the integration of realtime inventory with realtime support, ASDS' clients can take the 'crap shoot' element out of what is often the staggering cost (both in time and money) of a migration from traditional methods of commerce to the net. This transition is something most mid size companies are ill prepared to do by themselves(and many have stumbled. ASDS is well poised to take advantage in an area most analysts expect to see explosive growth during Q1. If you've really got your eye on the prize, you must look out past Q4 results and on to Q's 1&2 of 2000.
If you perceive there to be a frenzy for companies to bring their business to the Web right now, there's going to be all out pandemonium once the Christmas numbers are in. Regardless of the effects of Y2k, businesses are going to rush to the net having realized that one more day cannot be lost to their competition on the net.
ASDS is a comprehensive solution.
So I put my faith in the above -not "trendline support" -(how many times have we all been burned by that one; selling into the head fake. Sometimes it works and sometimes it doesn't -might as well flip a coin)
Just my take,
Schmedley |
