Ann: Becoming a substantial holder, page-12

Don't forget the cash, this is the true jewel amongst the favourable attributes of HSN that you mention. If you average free cashflow per share over the last the last 3 1/2 years it comes out as close to 15 cents. ie. 5% free cashflow yield. This has given management great flexibility to boost earnings and diversify the revenue base particularly across geography - by taking on short term debt and promptly repaying it.
My only concern is that as HSN has grown, larger acquisitions are now needed (eg Enoro) to become more meaningful to earnings. That usually means paying higher multiples so well worth keeping a watch that they remain disciplined in their strategy. To date management has shown themselves to be discerning in what they buy, apparantly from the many offers that they regularly receive.