Hi Freeus,
that estimate is really just an educated "guess" (although
Gofer concurred). DO NOT TRADE ON IT!! You must come up
with your own estimate and determine whether DFXI is a
sell/hold/buy. But DFXI hasn't let me down in 5 years...
we'll see...
As for selling off on the news. Who knows, but somehow I
smell a strong market rally in the works once the hysteria
we are witnessing calms down. Earnings are in general
positive, outlooks are good (except for the usual telecom
crowd and semi-equip stocks that in any case LAG the
recovery by several months), and several signs point to an
economic recovery (including the latest consumer sentiment
that was way above expectations --usually, that makes the
market rally).
Did you see the news release this morning? DFXI "scoopin up
the missy mice". Nobody can say these guys are a 1 product
company anymore. I think the management is very cunning.
Rather than chasing expensive acquisition, it buys solid
brand names for liquidation prices (and always with NO
dilution to shareholders):
Friday January 18, 9:11 am Eastern Time
Direct Focus to buy StairMaster assets for $25 mln
VANCOUVER, Wash., Jan 18 (Reuters) - Direct Focus (NasdaqNM:DFXI - news), a fitness and health products marketer, on Friday said it would buy the assets of bankrupt fitness equipment maker StairMaster Sports/Medical for about $25 million to add cardiovascular equipment to its fitness lines.
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Vancouver, Washington-based Direct Focus, which markets the Bow Flex and Nautilus fitness gear, said it was the highest bidder for substantially all of the assets of StairMaster through a bankruptcy auction in U.S. Bankruptcy Court for the Western District of Washington.
Direct Focus said it expects to close the deal in the first quarter, subject to final auction approval by the court. StairMaster filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in August.
Based on a preliminary analysis, StairMaster's operations are expected to contribute more than $40 million to annual sales and be accretive to earnings this year, Direct Focus said.
``StairMaster would bring us a strong product line of commercial cardiovascular equipment, complementary retail products and enhanced manufacturing capabilities,'' said Brian Cook, chief executive of Direct Focus.
Direct Focus has been on the acquisition trail. In September, a bankruptcy court approved its $65 million cash acquisition of the fitness equipment division of bicycle maker Schwinn/GT. |
