Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

ValueVision Media: Not Retail, But A Good Restructuring Play

ValueVision Media Inc. (NASDAQ:VVTV) stock has declined by more than 30%, this year, due to concerns over the weak retail environment and declining ASP's (Average Selling Price), even when the broader media sector is getting re-rated and the company has a new management. Growing revenues and EBITDA are good early visible signs of the improvement, but underneath there are more signs to suggest that momentum can be carried through successfully.

On the merchandise front, the company is expanding product assortment, adding proprietary brands and expanding emerging categories like fashion, jewelry and home. Operationally, the company is updating customer service software and warehousing systems.

Double digit increase in customer accounts, stable margins and improved purchase frequency are partly the result of...

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