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Strategies & Market Trends : Tragically Hip Koolaid Stand

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To: MulhollandDrive who wrote (42)11/14/2000 2:25:43 PM
From: John Pitera  Read Replies (1) of 604
 
NTAP is a company executing well.... they have been on
my short list of stocks to add too.

DFXI is an interesting company, the PE is not bad with
a trailing PE of 19 and a forward of 14.

I do see the insiders have stepped up their selling.

biz.yahoo.com

the issue with DFXI is when does their BowFlex line of
products hit a saturation point. I'm not saying that
this is imminent.

how are the Natilus sleep systems?

Numerous factors could affect our actual results, including the following:

- Our reliance on a limited product line; - Market acceptance of our existing and future products; - Growth management challenges; - Our limited experience in marketing Nautilus Sleep Systems; - A decline in consumer spending due to unfavorable economic conditions; - Government regulatory action; - Our ability to effectively identify and negotiate any future strategic acquisitions as well as to integrate any acquired businesses into our operations; and - Unpredictable events and circumstances relating to international operations, including our use of foreign manufacturers.


I do like their Gross Margins, and they actually have
expanded.

NET SALES

Net sales for the first nine months of 2000 increased 67.5% to $139.2 million, from $83.1 million in the same period in 1999. Direct marketing sales for the first nine months increased by 75.6% to $123.1 million. Sales within our Nautilus segment accounted for $16.1 million of our net sales. Sales growth in the first nine months of 2000 primarily resulted from expanded direct marketing of our Bowflex and Nautilus Sleep System products and the growth we experienced in e-Commerce sales, as well as the ongoing positive impact of the strong domestic economy.

GROSS PROFIT

Gross profit grew 71.9% to $102.4 million in the first nine months of 2000, from $59.6 million in the same period a year ago. Our gross profit margin increased by 1.8% to 73.5% in the first nine months of 2000, from 71.7% in the first nine months of 1999. The primary reason for this improvement was the increase in net sales of our direct products, which carry substantially higher margins than our Nautilus products, as a percentage of net sales.


biz.yahoo.com

I May poke around this stock a bit more.

John
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