Friday, February 17, 2006

GSIC After Q405 Update

GSI Commerce (NASDAQ:GSIC) reported a so so quarter, EPS 25 cents is shy of average analyst estimate of 30 cents. Q106 revenue guidance is also lower than expected.

After the report, I was a little surprised by the resilience of the stock. In the long run, I believe this company has the potential to evolve to a good story, but before the iceberg shows a tip, I won't be a big fan of it. I think it is a lousy stock backed by too many cheerleaders from Wall Street. I belive it is worth buying when price is in single digits.

I maintain my previous 'Neutral' view on this stock and lowered my 12-month target from 17$ to 15$.

Here is my updated financial sheet:

GSICQ405 Posted by Picasa


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