H. J.,
This, and the fact that PlanetRx' cash supply, though large, will go quickly, seem to put the bollix on that buyout scenario. Maybe when PlanetRx goes under, DSCM can get some of its partners & customers w/o having to pay for excess baggage. PlanetRx is likely to have a harder time getting financing now. Maybe death spiral converts.
It would appear DSCM will be using the proceeds to simply market, as well as to run its distribution center. I can't think of any acquisitions that make sense, except for focused, smaller ones, a la beauty.com.
I believe the ad campaign begins tonight. How soon its effects become metrics we can analyze, I'm not sure. No later than a quarter or two.
As you may have noticed by now, RAD sold a bit, but still has a large chunk. Don't know what your cost basis is, but with my commitments in the mid teens, I'm holding on for a bit to let DSCM execute.
Cheers, Tuck |
