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If your portfolio can handle some risk, internet and catalog gift retailer RedEnvelope (REDE) is worth a look. As always, our goal is not to convince you that you should or shouldn’t buy the stock, but rather to bring your attention to an interesting situation and let you decide where to go from there.

It has been a tough week for REDE. At this writing, shares are down 6% on the day after a downgrade from JMP Securities. News of the resignation of President and CEO Alison May broke Tuesday, coupled with the departure of Executive Vice President Kristine Dang. This is not the first major management change in recent memory: In March of last year, CFO Eric Wong left the company after an earnings shortfall.

Pain is not new to RedEnvelope. TheStreet.com wrote yesterday, “RedEnvelope has been a chronic underperformer since going public in late 2003.

Source: Potential Upside in E-tailer RedEnvelope (REDE)