Paul, regarding your earlier points about TLC:
== one time large Dec shipment to Walmart ==
TLC increased the number of products sold thru Walmart and Target. Would these large chains allow more store floor space if they weren't profitable? Why was the shipment "one time"?
== longer sales cycles, 20% return rates, 68 days rec's ==
Couldn't the increase to 20% return reserves and allowances be due to the older products getting a little stale? TLC has been releasing new versions and new releases, which should have a lower return rate going forward. Also, TLC explained the increased from 60 to 68 days in rec's to the increase in Foreign sales, which take longer for compensation.
== one time sales jumps to France ==
With increased sales to UK, Northern Europe, Germany, Pacific Rim, France, etc., why do you feel that sales growth in France will not continue?
== $.60 eps stretched by one time decrease in overhead costs ==
Would you mind saying why you feel that the decrease in overhead costs
is a one time event? Is it because of increased costs due to new product production?
== TLC will do only average sales & earnings growth at best ==
I hope you realize that you are "dissing" Peter Rabbit! How long would you forecast poor growth? Do you feel that any of the new products coming out shortly will have any effect on the sales & earnings growth, such as their new MMX and DVD products?
Obviously, your overall view of TLC is shared by many investors. You were correct about TLC's downward direction. If you address some of these questions, I would appreciate it.
Thanks,
Bob. |
