// you're reading...

On the Radar Reports

Hot Penny Stocks – ValueVision Media (VVTV)

The Santa Claus rally seems to have taken hold.  Why the improvement?

Maybe it’s progress on the European situation, or renewed faith in the economic future of the US.  Or maybe it’s good holiday feelings brought on by all the increased consumer spending.

Whatever the reason, here’s an electronic retailer with a unique sales strategy for you to put on your radar.

 

QUICK FACTS

Ticker                                      VVTV

Industry                                   Catalog & Mail Order Houses

Recent Price                           $1.92

Market Cap                              $93.2 m

Shares Outstanding                48.6 m

Average Volume                      336,571

Dividend Yield                          N/A

Website                                   http://www.shopnbc.com

 

COMPANY DESCRIPTION

ValueVision Media (VVTV) is in a special niche all its own. The company is half broadcaster half retailer. ValueVision has adopted the name ShopNBC for their 24-hour network and website.

The company has an exclusive trademark agreement with NBC Universal. The current contract allows VVTV to use the name through May 2012.

They use a standard shopping network type of setup. A host and sometimes a guest displays and talks about a product. There’s scrolling information and a number for customers to call and order.

The company sells a variety of market brands plus their own private product lines.           .

 

FINANCIALS

VVTV’s most recent quarterly numbers were released on December 8, 2011.

The company reported revenue of $135.2 million in the quarter. Up from last year’s third quarter revenue of $132.3 million. This is an increase of 2.2%.  ValueVision also reported a net loss of $6.4 million… a decrease year-over-year from a net loss of $5.8 million.

As of October 29, 2011, the company reported $27.7 million in cash and long-term debt of $25 million.

 

 KEY METRICS ANALYSIS

Trailing P/E                                       N/A

Price / Sales                                     0.15 x

Return on Assets                            -1.7 %

Insider ownership                             25.9 %

Short Ratio                                       3.3 x

Current Ratio                                    1.7 x

Total Debt To Equity                          23 x

 

RECENT EVENTS

The company has added a number of well-known brands in Q4. They include Calvin Klein, Hartmann luggage, and Brooks Brothers.

All of these big name brands get their own hour long debut show and event, including lots of press ahead of time.

VVTV also held its first 24-hour holiday cooking event in October 2011. It included some special value sales and a long list of celebrity chefs as well as 20 new items and three brand launches.

 

MANAGEMENT TEAM

Keith R Stewart – CEO

William J McGrath – CFO

G. Robert Ayd – President

Jean-Guillaume Sabatier – Senior VP Product Planning


STOCK ANALYSIS

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

VVTV’ 52-week low was $1.64 and the 52-week high was $8.73.  Right now the stock is trading at $1.92.  The 50-day moving average is near $1.99 a share and the 200-day moving average is at $4.36.  The company has a market cap of $93.2 million and 48.6 million shares outstanding.

 

 

Discover more great penny stock trading ideas with a subscription to Zenect Wealth.