February 8, 2011 by staff
1800flowers, 1-800-Flowers.com (FLWS, and 2.76) after better than expected results and fined at least some favor on Wall Street. Recently, we have been stressing the value inherent in a diversified portfolio of society expects companies and Wall Street once again embrace the company. In our post Just Like Clockwork at the beginning of last month, we said: Among the ideas we have highlighted overlooked here on CS $, one of the leading candidates is 1-800-Flowers.com (FLWS), where we see a strengthening “gap” for a company with more increasingly diverse. We can again relay that, when the fundamentals turn positive and we see improvements and broker funds claim a piece of the company, the stock will probably already back at 3-4 and on the way to $ 5-6.
Well, after the results, Goldman Sachs moved to a “neutral” rating from a “Sell” rating, which is a step in the right direction. We have not seen the report but assume that the company is pleased that the fundamentals are stabilizing and that the coast is apparently clearer than before.
Of course, we are all aware of the economic concerns and nagging that “selfish” discretionary spending is faster than “gift” of discretionary activity. For these reasons, Goldman Sachs may be moving out all the way to “Buy” rating and can also see positive Y / Y growth for the company. By our previous discussion, manyanlysts are afraid of getting wet until the coast is clear.
However, we are going back to what Warren Buffett said in his October 2008 NYTS Op-Ed Buy American. I Am. – The emphasis in the last sentence:
Let me be clear on one point: I cannot predict the short-term movements in the stock market. I have no idea as to whether stocks will be more or less a month – or a year – from now. What is likely, however, is that the market moves more, perhaps significantly, well before either sentiment or the economy occurs. So if you wait for the robins, spring will be over.
We continue to believe that is true for 1-800-Flowers.com. When Wall Street fully embraces the company, the stock will already be more significant. Therefore, the best time to buy shares is when they are thrown into the trash.
In addition, assuming a stable economy of the United States better, we think 1-800-Flowers.com may start to show positive Y / Y comparisons in the coming quarters. We can cite reasons for the release of company earnings:
The company said the decline of 1.3 percent revenue  reflects the reduction in the volume of bulk orders in the mass-market channel and the loss of about 1.4 million and revenues to higher margin associated with a marketing program to third end the Company in December of 2009.
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