After down 8%, P/E still 28, too expensive, page-28

So HSN is a company that has a sticky revenue base and no LT debt. This indicates the company is low risk.

It also has a healthy bank balance.

It also has indicated that there are no acquisitions on the horizon....

If that was true, why not return capital to shareholders ?

Remember them ?....They own the company.

Either pay a higher dividend, which in turn will increase the Div yield and ultimately the share price.

Or return capital to shareholders.

Either way, as a shareholder, I would much rather cash in my hand to pay debt or to reinvest, than sitting in HSN's bank account.

If down the track, they decide to buy something, they can either borrow, (cost of debt is low), or raise more capital (rights issue).

I think HSN Mgt is being way to conservative and the market doesnt like it.