Some points off the top of my head from the interview ( rough summary): PACER
has been buying companies that are related to adhesives and nail
.
ditributes in 75 countries.
currently has 15,000 outlets in U.S.
has 50 million in annual revenues.
has average growth rate over 11 years of 19%.
nail care division is growing at 20%.
instead of Indonesia targeting Poland and South Africa for nail products distribution ( both countries offer great opportunities).
plan to grow at 25% a year.
have been improving margins.
with new company brings 20,000 outlets (some overlap).
has new glue ( Future Glue) for home, pipe repair, concrete repair, underwater repair, wood repair.
will have new glue in 3 WalMart departments.
has new dispensing bottle for glue like nail polish dispenser.
can compete because has excellent quality control, not top heavy. with employees ( problems can be solved in 10 seconds)
has large product line which WalMart, HomeDepot, etc. want ( larger companies want ot deal with suppliers that have more than 3 or four products).
has great sales representative for distribution.
have little advertising because likes to do business directly, person-to-person.
is vertically integrated for more efficient operation
has little employee turnover because of great incentives ( health benefits, 401 K, equality in workplace, employee of the month bonuses).
When asked why investors should be the stock, the Jim said that ptch is a big little company with excellent management, excellent facilities, excellent distribution ( envy of the industry), and a well chosen and managed acquisition policy ( the acquisitions are quickly consolidated through reduced fixed expenses, improved margins). He believes the company with have phenomenal growth during the next 24-36 months. |
