I've been watching this stock for a long time and the management as well and it seems you hear one excuse after another from management as to why things are not going well.

During most of its conference calls, all you here from their cheerleaders is how wonderful they are. Well, a year ago this stock was double the price it is today - and I think after quarter after quarter of excuses as to why things aren't working - especially with their book publishing business, its time for senior management at Courier to be replaced or if not, at least get rid of those publishing businesses, as its clear they have no understanding of the book publishing business. But, of course, why should they, they are book printers!


Its interesting that today management cites market conditions as the main reason for the decline in book publishing sales (3 million dollars!!!) However, it has long be the case that even during bad economic times, book sales have done well compared to other markets because the cost of buying a book is relatively cheap when viewed against other items. So, why the reason for the poor sales?? Could it be that management has priced their books out of the market?? Talk to any bookseller, and I have talked to many, and they will note that once Courier buys a publisher, the first thing they see is an increase in the retail price of that publishers list. They first noticed this with Dover, which long had a reputation for publishing fine reprints at very good prices. No longer. Prices have gone "up each season" and they are no longer the great value they used to be, I was told. The same was true with REA, though their program is relatively small, so, the effect was not the same and with Creative Home.

Why would management do this? Short term thinking - and short-term profits. They could look good with shareholders by raising the prices and realizing quick profits. That's a nice plan for the short term and but it doesn't wash for the long.


Another excuse management used for the dismal sales with Creative Home was the poor housing market. Well, if management knew what they were doing, these sales could have actually gone up as consumers in the do-it-yourself market would certainly buy books to study plans and improvements they want to make when the market improves (if they planned to use a contractor for some work). Or they might save money by forgetting the contractor, buying the book and actually doing the home improvement themselves right now. Courier, if they understood this about the book publishing market, would have found a way to capitalize on the weak home market. But they don't.

As noted earlier, with the stock now down around $19.00 (and sinking) and a year ago it was $40, its time for change at Courier. Either senior Courier management goes or they sell the business they clearly don't understand, the book publishing units. And I hope that some of the big stock holders start pressuring the management to do one of the two or both.