Liquidity Services (NASDAQ: LQDT) Stock is Poised for a 40% Rebound

Amazon.com (NASDAQ: AMZN) makes it look easy. The e-commerce titan has just wrapped up its 15th straight year of at least 20% revenue growth, which is harder than it sounds when you consider its revenue base now stands at $75 billion.
If only all other kinds of e-commerce businesses were so easy to build. Other firms, while clearly benefiting from the long-term growth in the frictionless world of online commerce, are still suffering from growing pains.
Case in point: Liquidity Services (NASDAQ: LQDT), which helps businesses buy and sell surplus equipment through online exchanges. The company had a tremendous growth spurt, boosting sales from $219 million in fiscal 2009 (ended in September) to $475 million by fiscal 2012. Yet sales growth slowed to 6% in fiscal 2013, and analysts don't see much growth in the current fiscal year, sending this stock into a deep funk.

With shares now trading for one-third of the price they fetched in 2012, contrarian investors have started to give this e-commerce play a second look. Though LQDT is unlikely to revisit the $65 mark any time soon, a move back to $30 or even $35 looks quite feasible as the company starts to snag new customers.  (more)
Please share this article