Bought FLWS @1.85

1-800-FLOWERS.COM, Inc. (1-800-FLOWERS.COM) is engaged in providing flowers and plants, gift baskets, gourmet foods, confections, balloons and plush stuffed animals. Its BloomNet (www.mybloomnet.net) international floral wire service provides a range of products and value-added services designed to help professional florists. The 1-800-FLOWERS.COM, Inc. Gift Shop also includes gourmet gifts, such as popcorn and specialty treats from The Popcorn Factory (www.thepopcornfactory.com); cookies and baked gifts from Cheryl&Co. (www.cherylandco.com); chocolates and confections from Fannie May Confections Brands (www.fanniemay.com and www.harrylondon.com); gourmet foods from Greatfood.com (www.greatfood.com); wine gifts from Ambrosia (www.ambrosia.com or www.winetasting.com or www.Geerwade.com), and DesignPac Gifts (www.designpac.com). In January 2010, the Company announced that it has completed the sale of its Home and Children's Gifts business to PH International, LLC.




Negative: What can go wrong on this stock

- Double dip will drop the stock prices by 50%. This is not an essential commodity

- Slightly higher debt than a typical

- History of bad acquisitions and bad corporate management

Positive:

- Valuation: Cheap, Industry leader selling for less than 5 times depressed EBITDA.

- Paid of $60MM debt in last two years

- Started 1-800-baskets



Purchase Price: $1.85

Fair Value: $3.50