Motley Fool article-Monday winners and losers, 1800FL

Dior

Dior

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Feb 20, 2009
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Here's something I found on Motley Fool's Monday stock recap, just FYI:

Hey there, Fools. I've summoned our Motley Fool CAPS community once again to highlight a few of Monday's biggest winners among the stocks with top ratings of four or five stars:
>
> Company
>
> Yesterday's Gain
>
> Philips Electronics (NYSE: PHG)
>
> 7.01%
>
> Alvarion
>
> 6.12%
>
> Frontline (NYSE: FRO)
>
> 4.80%
>
> ATP Oil & Gas (Nasdaq: ATPG)
>
> 4.50%
>
> ING Groep (NYSE: ING)
>
> 3.73%
>
>
> And now for the losers ...
> Of course, winning isn't everything in the stock market.
>
> Here are five of Monday's biggest decliners with one- or two-star ratings: ??
>
> Company
>
> Yesterday's Loss
>
> 1-800-Flowers.com (Nasdaq: FLWS)
>
> 7.66%
>
> Krispy Kreme Doughnuts
>
> 6.36%
>
> Capital One Financial (NYSE: COF)
>
> 3.78%
>
> Crocs
>
> 3.61%
>
> Palm
>
> 3.02%
>
> While yesterday's drop in highly rated Mahindra Satyam may have caught our community off guard, low-ranked stocks are fully expected to fall hard.
>
> Did CAPS call the fall?
> In 2008, for instance, CAPS member DouglasRich warned that 1-800-Flowers smelled a little funky:
>
> I don't get the appeal of this company. They're well run, but does anyone really know people who use them? There's no shortage of online florists offering the same quality with less expensive prices. I usually hear 1800Flowers mentioned by friends as a comparison rate.
>
> Including yesterday's loss, shares of the online florist are down 72% since that underperform call.
>
> The bearish takeaway?
> Trust your own eyes above all else. Just as it might pay to "buy what you know," it's probably a good idea to stay away from stocks whose services you'll never consider using due to high price and/or low quality. Due diligence is always required, but as CAPS' DouglasRich understands, if you won't be satisfied as a customer, it might be a stretch to think you'll be happy as an investor.?
>
 
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OUCH..they are in there with some really bad company. I hope that just says something about their business model and not the industry as a whole.
 
I have some 800 stock and have watched it for years prior to purchasing. Back in the day, their stock has been in the upwards of about $11-12 per share.

When the stock market fell, their stock fell (along with everyone elses) to less than $1.00 per share. It is hovering around the $2.50 area but in the past six months it was somewhere between $3.00-$4.00.

If you would have bought the stock when it was $1.00 a share, you would have doubled your money in the past 6 months, even selling it today.

I don't think you can necessarily tell what is going on behind the scenes because other really good and well known companies aren't doing much better in the stock market.

General Electric is sticking to around $12 a share.
 
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Naaah....

But the Motley Fool article points to the real crux of 1-800's issues.

stay away from stocks whose services you'll never consider using due to high price and/or low quality.
Click to expand...

​
They continually receive low marks in user review sites. (FTD isn't any better, either.)

Their relationship with their supply chain is poor, especially with local florists. Some of their most ardent supporters of yesteryear have abandoned ship.

Paying BloomsToday $10/order rebates to compete with their affiliates also seems to be another big mis-step.

They're trying to move away from flowers (with a big push in gift & gourmet baskets) but the name kinda makes them stuck. ;)

This 50 roses for $19.95 V Day special (10 stems of spray roses) may be the biggest blunder yet.

Regardless, 1-800 still has gross sales at around $700m. I don't see the stock getting delisted anytime in the foreseeable future.
Time will tell.
 
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stay away from stocks whose services you'll never consider using due to high price and/or low quality.
Click to expand...

I would be more concerned with the statement of high price.

Has our product been devalued to much?
Is the quality really that bad from 800 flowers direct ship?
Or is the quality really that bad from 800 flowers fillers?
 
A $50 florist-delivered flower item has delivery and service charges of $22 - 44%.

A $40 florist-delivered flower item has delivery and services charges of $22 - more than 50%.

It's difficult for anyone on their fulfillment side to generate profits due to the very low margins, so the urge to cut corners is great.
 
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I saw a commercial last night from them saying no delivery or service charges for delivery by 2/12. Didn't see the details as I wasn't paying attention. I do like the fact that the commercial calls attention to the delivery and service charges. I think FTD charges $18.99 as the holiday gets near. As to Cathy's point, given the low price points lately, that's a huge percentage. Can't be good.
 
BOSS said:
Usually... but they keep the money....

Valentines is not a big wire holiday...so....
Click to expand...
Boss Just wandering if you have the data from the wire services to support that...I am curious what the wire #'s are for VD.
We have a university, a private college and 3 community colleges (2 of which now have housing). VD has always been a huge incoming holiday for us. Only holiday that we ever have been forced to shut down the system to keep them from coming.
When we gave up doing all the 1-800 orders the first year they made the huge mistake of sending ALL of them to another florist in Syracuse that was not equipt or capable of handling the volume that we always did for them. That florist had several hundred orders that they never filled in time and spent 2 days after VD doing those orders.

Joan
 
CHR said:
It's not a big florist-to-florist holiday, but it's huge for SFOs. Think of all the male shoppers who just go to the first brand they remember or first SERP on a page.
Click to expand...
Joan, I guess THIS is what I meant....

Since I do not fill ANY company orders I don't see them, thus my incoming volume is very low for VD. The thing florists will see this year, with VD falling on a Sunday, is that they will come into the shop Sunday morning to a huge pile of last minute gathered orders with specific colors and products, and be unable to source more product from suppliers.

We have decided we will *have* to be open on Sunday, much to my chagrin. We're going to limit hours to 10-3, with limited delivery areas. Oddly enough, we're already getting orders for VD, and every customer we have offered free delivery to, has opted for Friday or Saturday delivery. I hope this holds true....
 
BOSS said:
We have decided we will *have* to be open on Sunday, much to my chagrin. We're going to limit hours to 10-3, with limited delivery areas. Oddly enough, we're already getting orders for VD, and every customer we have offered free delivery to, has opted for Friday or Saturday delivery. I hope this holds true....
Click to expand...

So will you be charging more for Sunday delivery. This has been the topic here. I have a delivery person who is willing but wants more $$ for Sunday delivery, being he is giving up his only day off. So will profttf800 be getting more for Sunday delivery? Just curious.
 
Kristine said:
So will you be charging more for Sunday delivery. This has been the topic here. I have a delivery person who is willing but wants more $$ for Sunday delivery, being he is giving up his only day off. So will profttf800 be getting more for Sunday delivery? Just curious.
Click to expand...
No, Sunday will be regular price... free for Friday and Saturday....

Time will tell if the OG's will charge more for Sunday. Anyone that fills these orders should keep an eye on their sites, and demand the full delivery fee charged...
 
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I had a valentine day order come through for a sweet girl that I have known since the 3rd grade and she is in college now. Her boyfriend went through From you Flowers (I received $34.99 for delivery and flowers and this is my $10.95 delivery area). I was able to get his phone number from Luellas mom and talk to him. I told him that I wanted to do something awsome for him for the same abount of money that he spent with FYF. .. Long story short.. I got him to cancel the order and he placed it with me! Here is what they chared him... $34.99 for the flowers, 13.99 Delivery Fee (yes it say delivery fee), $9.99 holiday service charge. I hate how they rip off the consumer!
 
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Karen - WTG!

I'm stunned FU pocketed $24 plus 20% commission plus the TF rebate - somewhere around $38 and meanwhile, the delivering florist gets paid $24 after commissions and fees. And you know there'll be a complaint about how skimpy the arrangement looks after spending almost $60.

Got a copy of the receipt where it calls the service charge 'delivery'? Would love to see it.
 
Yea... what Cathy said....

I'd love to have a hard copy of the printed internet receipt... it might find it's way up online :{)

This is just another example of how EVERY order these gatherers take gets raped of profits... rightfully due the filling florist.
 
Well, just checked the stock closing, and 18F dropped another 8.68% today. They're at $2.00 now. Bad week for them.
 
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