SI
SI
discoversearch

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.
Biotech / Medical : Nature's Bounty (NBTY)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: STEVE who wrote (688)5/22/2001 2:58:05 PM
From: Tom Pulley  Read Replies (1) of 708
 
Steve, I think you are are right as the stock performance of the last few months is telling us that some investors think earnings will be above the estimates over the next year.

The wholesale business is growing at a good pace. If I recall correctly, the domestic retail business is losing money and has been dragging down the rest of the company. The primary reason is that they have opened up numerous new outlets in the last two years and they are taking longer than expected to reach profitability. Recently, management indicated they will dramatically slow down the expansion of the domestic retail business. Since most of the retail outlets are only one or two years old, these outlets should now move fairly quickly toward profitability over the next one to two years. Without new money losing retail outlets being opened up, the stage is set for domestic retail results to improve significantly.

If the domestic retail business turns around and quits dragging down the rest of the businesses, we could see some good growth for the next 1-2 years. Time will tell.

Tom
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext