Vikram Kumar
Long/short equity, value, long-term horizon

Geeknet: Questionable Business Model And High Valuation

Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Geeknet (NASDAQ:GKNT): Questionable Business Model and High Valuation

Company Overview

Geeknet is predominantly an online retailer that specializes in selling "geek"-themed products. It operates the website Many of its products fall into the Star Wars genre, or have their own special humor or eccentricities. The company derives its revenue from two sources - its website and wholesale revenues. A bull might say it has a cult following (over 600,000 Facebook likes); a bear may call it a fad.

The company had a rough...

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