Comments on: AeroGrow (AERO) Valuation

By: Jae Jun

Jae Jun — Fri, 23 May 2008 02:43:10 +0000

Any photos to show us progress?? I find this product really interesting just looking at the photos of other peoples experiences.
As for the one hit wonder, that is very true. AeroGrow just announced they received additional financing which should help with growth. I just hope they can show some profitable numbers by end of Q3.

By: ed

ed — Thu, 22 May 2008 12:04:31 +0000

Off topic but the product is excellent. My wife bought me one for my office and it’s performing better than I expected it to. As far as the company goes, I wonder if AERO can break out of the niche into the larger market. From the looks of their catalog, it’s on the roadmap. There are lots of one hit wonders that fail to do that and eventually fade away.

By: Jae Jun

Jae Jun — Fri, 16 May 2008 14:47:18 +0000

Hi Daphne,
To be honest, I am not the owner of one yet. However, I have been searching around on growing your own seeds and there are definitely ways to do it. You can buy the deluxe kit which supplies you with a years worth of nutrients, sponges and pods separately so that you can insert your own seeds. OR you could try searching for hydroponic supplies and buy the sponges only.
Hope that helps somewhat

By: Daphne

Daphne — Fri, 16 May 2008 08:05:20 +0000

Hi threre I just bought the aerogrow and set it up. I got a great buy in it $37.99 at target and I bought 2 of the tomato boxes for $4.99 each. I was wondering if you are still happy with it? Have you tried to use your own seeds and if so how did that work out?
Thanks, Daphne
PS sorry if this was off the subject but I am surfing the net for information on this kit.

By: Jeff

Jeff — Mon, 05 May 2008 10:15:04 +0000

Ah, makes sense, thanks.
-Jeff

By: Jae Jun

Jae Jun — Mon, 05 May 2008 08:15:00 +0000

Hi Jeff,
I was re-reading your question and I don’t think I answered it completely.
What I really meant was that I looked at the FCF numbers to compare performance but for the intrinsic value, since the FCF is negative, I used operating earnings to derive the numbers that I got.

By: Jeff

Jeff — Mon, 05 May 2008 01:07:11 +0000

Jae,
Sounds like an excellent plan. You’ve done a great job so far with Old School Value.
-Jeff

By: Jae Jun

Jae Jun — Sun, 04 May 2008 15:46:00 +0000

Hi Jeff,
There is a high degree of uncertainty about the company and so I’ve only invested a very small portion of my portfolio (3% to be precise) with the intention of investing more if profits materialise. Since it is currently only a $30+ million company, it won’t be too late for me even when the company grows some more.
And I was looking at the free cash flow numbers.
Thanks for dropping by. You have an interesting blog there as well.

By: Jeff

Jeff — Sun, 04 May 2008 08:25:52 +0000

Hey, excellent job with some out of the box thinking. Not a typical value play obviously, but nonetheless intriguing. Peter Lynch would be proud of a find like this…
My question is thus: is this a company you’d invest in now? Or rather, wait until the company because profitable before investing?
Also, were you cash flow numbers straight cash from operations, or a free cash flow number?
Excellent job, though.
-Jeff