OROA: OROAMERICA - A small cap jewel Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : OROA: OROAMERICA - A small cap jewel

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext

To: Bilow who wrote (5)	8/14/1999 9:21:00 PM
From: Glenn D. Rudolph	of 6

Carl, I am familiar with Oroarmerica and have had some dealings with them in the past. It is my opinion that the price of the stock will be directly related to the price of gold. This firm does not do a good job at marketing towards the independant jeweler. The advanatge to this is a smaller sales forces is needed. The disadvantage is that the growth in the jewelry business is coming more from the independants than the chain stores. The other problem OROA faces is that a failure by one of their customers can be very expensive and I see they have experienced that in the past. The competitive environment in this industry is increasing. This accounts for the increased administrative and selling expenses as a percentage of gross revenue. Also, take into account the drop in the price of gold. It is my opinion that 7-8 is a fair price for OROA. I do not believe they will do well long term. Their focus is too much on the chain store operations and their products are a commodity except for some few patented products. If you look their stock performance during the the last five years, they have underperformed the S & P 500 by a lot. Do you know of a reason they will out perform the S & P 500? Glenn

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext