Reminder of Jim's interview with commentary;
Pacer Technology
has been buying companies that are related to adhesives and nail care ( ADHESIVES AND NAIL CARE ARE AREAS OF GROWTH. AS THE FEMALE POPULATION AGES, NAIL BEAUTIFICATION NEEDS CREATE GREATER DEMAND FOR PTCH PRODUCTS)
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ditributes in 75 countries. (EXCELLENT MARKETING OPPORTUNITIES WORLD-WIDE. ATTRACTIVE FOR A COMPANY ON THE MAKE LOOKING FOR WIDER DISTRIBUTION CHANNELS)
currently has 15,000 outlets in U.S. ( SEE COMMENT DIRECTLY ABOVE)
has 50 million in annual revenues. ( STARTING TO BE A BIG LITTLE COMPANY)
has average growth rate over 11 years of 19%. (THIS IS AN EXCELLENT NUMBER THAT SHOULD TRANSLATE INTO EVER HIGHER STOCK PRICE IF PROGRESS CONTINUES)
nail care division is growing at 20%. ( EXCELLENT AREA OF GROWTH FOR THE COMPANY)
instead of Indonesia targeting Poland and South Africa for nail products distribution ( both countries offer great opportunities).
(INDICATES THAT MANAGEMENT HAS IS FAST- THINKING AND KNOWS HOW TO TAKE ADVANTAGE OF OPPORTUNITIES)
plan to grow at 25% a year. ( IF THIS TURNS OUT TO BE CORRECT, STOCK WILL CERTAINLY BE MUCH HIGHER)
have been improving margins. (SEE DIRECTLY ABOVE)
with new company brings 20,000 outlets (some overlap). (AGAIN THIS BODES WELL FOR FUTURE AND MAY ENTICE ANOTHER COMPANY TO BE INTERESTED IN PURCHASING PACER)
has new glue ( Future Glue) for home, pipe repair, concrete repair, underwater repair, wood repair. (COULD HELP IMPROVE REVENUES AND EARNING. SHOWS R & D UP TO SNUFF.)
will have new glue in 3 WalMart departments. ( SHOWS QUALITY DISTRIBUTION ABILITIES)
has new dispensing bottle for glue like nail polish dispenser. ( R&D ON THE BALL)
can compete because has excellent quality control, not top heavy. with employees ( problems can be solved in 10 seconds) ( AGAIN BODES WELL FOR FUTURE EARNINGS)
has large product line which WalMart, HomeDepot, etc. want ( larger companies want ot deal with suppliers that have more than 3 or four products). ( WILL NOT BE SO EASILY ACED OUT BY COMPETITION)
has great sales representative for distribution. ( CONFIRMS QUALITY MANAGEMENT)
have little advertising because likes to do business directly, person-to-person. ( QUALITY MANAGEMENT)
is vertically integrated for more efficient operation (DITTO)
has little employee turnover because of great incentives ( health benefits, 401 K, equality in workplace, employee of the month bonuses). (DITTO)
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. (SAYS IT ALL HERE IN THIS SUMMARY) |
