Speed Commerce: Transition From Distribution To E-Commerce Is An Overlooked Catalyst
- The ~25% YTD decline for Speed Commerce creates an asymmetric opportunity due to unwarranted concern over the secular decline in part of the distribution segment.
- E-commerce growth (with a 10x higher EBITDA margin) is ramping up while higher consumer electronics sales in the distribution segment are mostly offsetting lower software/video game sales.
- The upcoming decision by management regarding the future of the distribution segment (e.g. much smaller and more focused) is a significant and underpriced near term catalyst.