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Msg  10 of 10  at  6/30/2011 4:37:23 PM  by


my mid year review of GAIA

 INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

GAIA (market cap $0.12B)
Gaiam sells goods for alternative and sustainable lifestyles: seemingly everything from yoga mats and exercise videos to solar power converters. They are effectively a mini-conglomerate in an industry that I expect will increase significantly. There seems to be a dichotomy within the company; one side selling consumer goods online and through real world resellers, and the other and possibly dominant side focussed on DVDs.

I think the company is missing an opportunity. The recent economic turmoil, expensive traditional health care, and the growing awareness of climate change is encouraging people to find alternative and more sustainable lifestyles. Gaiam's seems to be directly positioned to meet that market, yet the company describes itself as a media and fitness company. Alternative energy, sustainable lifestyle products are in the catalog, but not emphasized in the company's identity. A friend also weighed in on another aspect of Gaiam's product line; "I looked through Gaiam and seems like all has changed. The wonderful clothes they used to feature have all changed to more ordinary wear . . ."  Not a good sign, when long-time customers can't find a reason to buy.

Despite all of that, the company's financials are cheap in terms of price/book & price/sales < 1, which can be attractive from a value and turn-around point of view. They are making money, which gives them resources for growth, and maybe management has a media angle I don't appreciate in the era of video streaming ala Netflix and YouTube.

DISCLOSURE LTBH since 2006, customer for years, and a RSOL shareholder, and have been selling to buy stocks in what I consider to be more progressive companies.
(I've also collected links to the other discussion boards and my other stocks over on my blog

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