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Yes, strange pattern of trading with Oakley! I attended the meeting today at their new facility in Lake Forrest! Nice building. Everything is under 1 roof. Michael Jordan and Dennis Rodman were there, although neither spoke during the meeting. Nothing too exciting really happened. It was held in a semi-oval auditorium that seats about 350-400. There were probably 400-500 people there, many standing. Jim Jannard started the "SHOW" by speaking for a little while about Oakley being a "PHILOSOPHY, not just a company!" He said "We create solutions to problems." I am not sure what he meant, but when asked if Oakley planned on branching out into other products, he didn't say no. He described what goes into the process of creating the worlds best sunglasses (as he called them). After today, I do believe that they are the best as far as optical quality of lenses is concerned. Link Newcomb and Mike Parnell also spoke adressing things about sales. They discussed Sunglass Hut and other retailers they deal with. They have built very strong relationships with their retailers which has lead to optimal placement of Oakley sunglasses in their stores. Inventory levels are now closely monitored and properly maintained; something they didn't do enough of in the past! Sales have been ramping up to very nice levels and they are actually back ordered on the new "Fives" due to very high demand. The X-metal manufacturing process has been expedited, although they are still not yet supplying the demand. The new shades are clearly quite popular. The fastest growing part of Oakley's business is the Rx (Perscription) business. It is an 8 billion a year industry that they are slowly but surely taking a piece of. It shows great promise for future sales. European and Asian markets are also growing quite rapidly as was shown by some of the many detailed graphs that were presented during the A/V demonstration. They did have a bit of a problem with the microphone, but it was handled in a comical manner. Overall, the meeting was quite positive. Many people from the press were in attendance. After the meeting, several tours of the facility were given. I took one of the tours. The manufacturing process is quite impressive. The quality standards are unparalleled. There was a definite presence of security, both camera's and guards to protect their proprietary patended processes, theft, etc. They operate around the clock with 3 separate 8 hour shifts. There are two very nice cafeteria's and a full size basketball court. Many employees play during their breaks, lunch, after work... The company has a feel of enthusiasm that impressed me. I hope it impresses others too! I would like to see sales through the roof and the stock price at least to the ceiling.....................Regards, Jeff....... |
