07-16-2019

Beaten to a pulp recently.

Way to play E-Commerce efficiently. Anyone selling via email will need a lable at this time. The E-Commerce market is about $3 Trillion globally in 2019. A seller can get access to the market and capital easily with only an internet connection. But in order to ship, they also need shipping labels (new-age stamps). Why not subscribe for a couple hundred dollars per year?

Business Model misunderstood. Monopoly but such a niche that nobody notices them. Biggest threat is a system that does not require a shipping label.

Very likely (and becoming more likely to use a Stamps.com subsidiary)

Etsy

Ebay

Instagram

Amazon (has own -Uber- logistics network and drones)

Shopify

Wal-Mart

Quickbooks integration

Nearly every Brick and Mortar retailer sells online

International business though subs

FINANCIALS

Book Value and capital structure

Still good margins

Shareholder friendly – discontinued USPS partnership knowing it would kill EPS. Long term thinking. USPS is slow and inefficient. Now the goal is to allow subscribers to instantly compare all available carriers. 

Based on this shareholder friendly approach, I expect Stamps.com to eventually begin cross selling other services that will have high adoption rates. STMP is acquiring enterprise customers globally through acquisitions. 

Subscriptions are sticky and have many pirques (easy dashboard and the coding can integrate). In the case of most purchases, one brand has more sway than other brands. However, when there are monopolies, brand strength doesn’t matter. You hardly need a PhD in economics to figure that out. 

The subscriber philosophy has long proven more successful than the one time purchase. With the internet, subscribers are much easier to attain and market other adjacent products to. 

Automate everything. How does it work? Glad you asked.

Great market Share (leading Amazon)

5 times earnings only. Earnings consistent. 

Expect to increase EPS as synergies are realized among the subsidiaries.