Alan Brochstein, CFA
Contrarian, growth at reasonable price, management change, cannabis stocks

Digital River Could Run Dry

After years of poor performance including loss of a key client and poorly integrated acquisitions that didn't pan out, Digital River (NASDAQ:DRIV) has jumped 55% since posting a 10-year low three months ago. Still down more than 2/3 from its all-time high several years ago, the stock has caught the attention of at least one prominent investor. With a recent CEO change, better times may be ahead, but the buyers appear to be too early.

Background

DRIV is based in Minneapolis and was founded in 1994, with an IPO at $8.50 in August, 1998. The company was initially focused on serving software companies, acting as their end-to-end e-commerce solution. Symantec (NASDAQ:SYMC) was its largest customer by...

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