Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Vitacost.com Is A Compelling Risk/Reward Before Earnings

Executive summary:

  • Vitacost.com (NASDAQ:VITC) ("Vitacost") is cheap both on an absolute and relative basis.
  • Certain activist investors are calling for the company to sell itself.
  • Vitacost reports full year 2013 results before the bell on Thursday, February 27, which could act as a positive catalyst to move the shares higher.

_______________________

Vitacost is an online retailer of vitamins, minerals, health supplements, beauty products and natural foods. Vitacost carries over 40,000 SKUs across these product categories, as seen below.

(click to enlarge)

source: Vitacost investor presentation

At Vitacost's current $207 million valuation, the shares are providing for a particularly asymmetric investment given the low valuation (0.5x EV/sales) and recent insider shareholder activism calling for the sale of the company....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details