If Jif is lame, RedEnvelope Inc. (REDE) is worse

As far as stocks go, I don't think it gets any crappier than overpriced and totally lame - RedEnvelope, Inc.(Public, NASDAQ:REDE)

Shares of the upscale-yuppy-Mom shopping site hit a new 52-week low at $6 a share today. The Masters are aware that this company did pull in $113 million in revenue last year but their latest earnings report was horrible.

Net revenues for the fourth quarter of fiscal 2007 were $21.9 million, compared to $22.0 million in the fourth quarter of fiscal 2006. Net loss was $(4.3) million, or $(0.45) per diluted share, compared to a net loss of $(4.5) million, or $(0.49) per diluted share in the fourth quarter of fiscal 2006. They also reported that choosier Mom's choose Jif and just didn't like shopping at RedEnvelope.com last quarter because all their merchandise is overpriced and "totally gay".

REDE trimmed its fourth-quarter loss, but said it still expects negative cash flows for the 2008 fiscal year. The company noted that net loss for the current quarter includes stock option expenses of $696,000 as required by SFAS No. 123. They just can't seem to spend enough money, I think they should spend more and go even more in debt.

I would like to see Amazon.com (AMZN), Yahoo (YHOO), hell anyone come in and buy these guys. That could make the stock run, other than that, I'll wait for shares to hit $5 and keep eating my Jif on an open-faced piece of wonderbread. If shares go under $5, I'll put down my Jiffy sandwich and then I'm all in but I'd bet they'll get bought out or close up shop before that happens.

Article written by: Frank Lara Jr.
Article posted on: July 9th, 2007

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Disclaimer: The Author hates REDE and does not own any positions in it, and most likely, never will.