KSWS--apparently the reason for today's fall "is that both inventories and accounts receivable ballooned at a rate greater than the impressive sales increase of 64%" (midday movers, courtesy of iionline).
Here is a post from luv2shortem (love those names over there!) on the YHOO thread, though:
Conference call was very upbeat:
1. Inventory is up at 6/30 because most orders in the 3rd quarter are placed and filled at the beginning of the quarter, like now.
2. By being selective about retailers they are able to avoid the low margin pricing others engage in. Retailers like their product because it's limited availability allows for premium pricing. Limited stock also means less exposure to markdowns.
3. All the analysts appearsed to be reasonable and at the very least the high respect they have for management is apparent.
4. The company wanted to buy more shares at today's open ("we were salivating" quote from CEO) but were advised by their counsel to wait at least 24 hrs after release of financials.
5. $10 Million left in buyback budget. They'll be back in buying right away, (probably next week, is my personal feeling).
6. They have good cash flow now and CEO says once the $10Mil is exhausted, they probably ask the board for more to buy back more.
7. Cash at years should be over $75 Million.
8. Ad campaigns are heavy in 2nd and 3rd quarters, that's the normal cycle.
9. Industry size is $15billion. KSWS sales in 98 were $161 million. CEO that gives them the opportunity to do things the big sisters can't do. They have none of the problems of the big sisters. CEO: Key strategy is to "maximize smallness".
10. Rest of business growing faster than tennis-related products.
11. In Asia, there is no KSWS infrastructure, most of every dollar falls to the bottom line.
12. There's more....
The conf call is the best source of info, call and listen for yourselves. If you're serious about this company, it's worth the time.
Luv
Looks like a possible bounce candidate to me.
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