The facts: Gaiam has written off millions of dollars of assets from its balance sheet where its market value has plummeted over 200% since 2008. Gaiam has failed to earn a profit for 5 consecutive quarters. Gaiam's sales revenues and gross margins are shrinking through all business channels with the exception of solar where RGS’s has yet to establish profitability and revenues have increased through acquisitions. Gaiam has failed to counter punch (or even acknowledge) its #1 competitor, Lululemon, who continues to steal away Gaiam's best customers and increase its market share. Lululemon's (lulu) trading at $4+ March 09 are now valued at $20.

If Gaiam is so successful in managing its cash $$$, ask the Gaiam board where the $70M in cash went from its 2006 balance sheet (from $110M to $40M). How much money did Gaiam overpay to acquire chairman, Jirka Rysavy's worthless assets? Maybe Trudy Skylar and Valerie Bertinelli have the magic elixir to rescue Gaiam from its misery. The Discovery and Jenny Craig deals will help prop-up 4Q 2009 revenue but not begin to offset the loss of profitability from the diminished sell-through of Gaiam’s proprietary DVD’s and fitness products with its core B2B accounts. $40M in deposited cash? Now you see it..... now you don’t.

If you want a real deal: buy Gaiam products at it's end-of summer fire sale at gaiam.com.