Three Coronas, three Jose Cuervos, Three Squared...
Just finished my board examinations. I have seen about as much paradoxical throacoabdominal movement as I want to the rest of my life. Just got back from the bar and feeling frisky...
Did some research in about 15 minutes last Saturday before hopping on the plane. This is REALLY interesting, or maybe I am just deluding myself. But here it is...TSQD is a failing reseller of Mac stuff. They even invested in a goddamn goldmine (I am not making this up). But the one thing they did right was invest in a small startup called Digital River (DR). I mentioned this Saturday, it was mentioned in the Street article. Anyway, TSQD owns 26%, or 4.8 million shares at $1 a share. TSQD stands at $1.61 a share, market cap at like 40% of sales, balance sheet is OK.
But here is the rub. DR is still a private company, that's why you can't find much information on it, that's why it doesn't have a damn analyst. BUT...DR's financials are rpeorted through TSQD financials. And it looks interesting. DR sales in 1996 were 101K, 2 million in 1997. Their CEO says revebues growing a 20-40% a month compounded in 1998, so you are talking about a big 1998. And they will have an IPO later this year.
I can tell you, I can feel when an IPO will be given the label "much anticipated", like NSCP or ATHM or DCLK. DR will be big. And maybe you can play it by owning TSQD. I was so convinced of my quick DD, that I put in a market order for TSQD on Saturday. Also, TSQD runs some of DR's operations, they gave them a warehouse, they gave 83% of the time of one of the VPs, they provide some management services. Also Fujitsu owns 19% of DR. Why would Fujitusu want to do that? Pay per view of photos, perhaps???
Anway, if DR has one of those breathtaking valuations like ATHM, NSCP DCLK, etc., TSQD will be in double digits real fast. And if Apple has a renassaince, then the core business will fly as well. And if gold picks up...well, you get the picture.
I am riding the Wave and will continue do so, but there is another wave coming down the River.
Another Cuervo...make that a Sauza.
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