Jerry R

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Wed Mar 26th 01:07 AM | Rating: 0 0
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Drugstore.com Ready to Move Up; Limited Downside Risk

I have been following this stock since 2001. I have accumulated nearly 40,000 shares at an average of 2.43/share with the maximum at 3.01 per share. I have taken advantage of past stock price run up. Since Dawn Lepore took over, the company has redefined its business model and moved through EBITA profitability to the first quarter of GAP profitability 4th quarter last year. They did this without messing with accounting tricks. They are on track and Dawn is conservative in her forecasting.

There is some hedge fund activity with this stock that should wane if GAP profit or near profit continues.

I added another 5,000 shares at 2.20 last week.

I agree with the analysis, provided the US economy supports the business model. This is always a risk factor. Consumer confidence is a valid issue with this stock. I believe the tax rebate will help this stocks performance in the short run, but in addition to the retained customer metrics, continued customer growth should also be monitored. Margin per order has been improving and show also be monitored especially with transportation costs rising. This is not a stock to buy and go to sleep on.

Check out their charts at investor.shareholder.c.../

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