Liquidation.com Takes a Beating
11/21/2013
After announcing earnings and an outlook that disappointed investors, Liquidity Services stock plummeted by 20% today. As I listened to the earnings call, it felt to me like analysts are concerned about:
- certain key areas of the business having negative growth rates
- uncertainty around the DoD contracts
- continuing investment in their GoIndustry acquisition
- a general feeling of a lack of strategic focus.
After topping out at a roughly $2 billion market cap in May-June, 2012 timeframe, it is interesting to see the company trading at a market cap back under $700mm. This is a price the company hasn't seen since around Q3 2011.