ValueVision Shares Soar
Shares of television and online home-shopping retailer ValueVision International soared 115 percent Tuesday after the company said pre-Christmas sales jumped 70 percent from a year ago.
The stock (VVTV) climbed 7 3/16 to 13 7/16.
The company, primarily known for a 24-hour TV home-shopping network seen in 21 million homes nationwide, said in a statement that electronic commerce sales are rising "at a far greater percentage" than TV sales.Investors have pursued e-commerce stocks with reckless abandon in recent days, grabbing up shares of uBID (UBID), Ticketmaster CitySearch Online (TMCS), Amazon.com (AMZN) and others.
ValueVision said fourth-quarter sales before Christmas rose more than 50 percent, including a record $9.2 million in shipments for the week ended Dec. 20.
The rise in shipments was actually attributed to the growth of ValueVision's TV business. Management's "commitment" to the TV side boosted "cable household distribution and increased penetration," said Gene McCaffrey, the company's chief executive.
McCaffrey said ValueVision is still looking at a "very positive" trend for the fiscal fourth quarter.
In November, the company said it saw a "return to profitability" in the fiscal fourth period.
At that time, ValueVision also said it will re-introduce conference calls with shareholders and financial institutions beginning with the current quarter.
Shop At Home (SATH), another TV-based retailer, saw its shares jump 13.6 percent to 9 29/32. Comcast (CMCSK), owner of the QVC home-shopping network, rose fractionally, as did USA Networks (USAI), owner of television's Home Shopping Network and a 42.5-percent stake in Ticketmaster CitySearch Online.
Written By David B. Wilkerson