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Author: TMFTwitty Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 289  
Subject: Drugstore.com in Fool Commentary Date: 3/11/2003 12:55 PM
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http://www.fool.com/news/commentary/2003/commentary030311tj.htm

The analysis continues:

"Today's column picks apart the financial information to turn the second key of valuation: Is drugstore.com's risk-reward tradeoff favorable at its current price?"
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Author: TMFEdible Big red star, 1000 posts Supernova Phoenix 1
Mission Team Member CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 281 of 289
Subject: Re: Drugstore.com in Fool Commentary Date: 3/11/2003 4:06 PM
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It was an excellent article. Great analysis. I'll be honest, I had always figured that Drugstore.com was left for dead. It's not peddling the kind of goods or distressed niche merchandise that can cut it online. So I just went away, figuring I should load up on Drugstore.com at the next dot-com death pool.

I was stunned to see that it is bleeding so little right now -- then again, it was the seasonally strong fourth quarter. I at least walked away from Tom's great analysis not as jaded with the stock, though still not an admirer.

Rick


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Author: gnostic11 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 282 of 289
Subject: Re: Drugstore.com in Fool Commentary Date: 3/11/2003 9:50 PM
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Good Article.

I worry more about the Rite-Aid partnership than the Amazon one. Check the Board of Directors and you'll see what I mean in reference to Amazon. Rite-Aid scares me thou. But if you notice one of the things that DSCM is actively doing is building lots of new partnerships and expanding its own speciality stores. It stock action has done well lately but if you check a yearly chart you'll see that this is a good time of year for the stock price. I think many at this time will hold the stock waiting for profitablity this year.

Note DSCM did't pull any Pro-Forma Postive BS in their last quarterly update.

The chance to load-up on DSCM was after 9/11. I got a 1000 at .64. The right entry price makes LTBH alot, alot easier.

Although past price behavior is no indication of future performance, I would strongly suggest Fools check a multi-year chart of DSCM before purchase.

Of course the train may already be leaving the station which brings me back to my earlier statement of "I think many at this time will hold the stock waiting for profitablity this year."

I own the stock and shop at Drugstore.com.

gnos<E-CommerceTheNewHomeOfDSCM?>

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Author: TMFTom9 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 283 of 289
Subject: Re: Drugstore.com in Fool Commentary Date: 3/11/2003 10:11 PM
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Hey gnostic11--

Glad to hear from a satisfied DSCM customer. Took guts to buy at 0.64 --you deserve the return! The trend in cash burn was barely underway, and you could argue that the future was not nearly as bright as it appears now.

I agree-the Rite Aid partnership is absolutely key. If I had another 1000 words, that would be a theme to explore. Do you follow Rite Aid? Frankly, it's worth looking into their state now, coming back from the dead and financial issues themselves.

Best Foolish wishes,
Tom9



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Author: gnostic11 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 284 of 289
Subject: Re: Drugstore.com in Fool Commentary Date: 3/11/2003 10:26 PM
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Let me get back to you on that. The stock price has been crippled in recent years through thier internal corruption problems but that may be over.

I have only personal experence to base the following statement on and more research is needed.

They have too many Old and non-performing stores. Unless I see massive store closing I'm not comfortable with the stock.

Again that's a personal opinion with no real facts to back it up.

But I wouldn't touch the stock above $2. Check last years price chart.

When I've done some research I'll revisit the store closing issue.

gnos

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