Joe and Redhead. I could not find out who Martha Murphy is, but according to Thompson's she does not own shares. She is listed as an officer as of Jan. but not listed among the insiders owning shares.
Here's some help for your DD.
An analyst offering coverage:
stockresearch.com
Recent Dow Jones story:
Dow Jones Newswires -- March 23, 1998
Helen Of Troy Rebounds, Production Woes Seen Abating
By Melanie Trottman
NEW YORK (Dow Jones)--Shares of Helen of Troy Corp. (HELE) continue to rebound after a November slide, and market watchers cite a steady return of momentum as investors realize the company's production problems during the third quarter were short-term.
Helen of Troy acting controller Paul Johnson said the maker and distributor of hair-care products hasn't issued any news that would cause the recent upturn in the stock, though, he did say, the company expects to meet analysts' top- and bottom-line estimates for the fourth quarter ended February.
While Johnson couldn't point to a specific reason for the recent stock upswing, he did say the company has been made aware that a few new funds have started buying large blocks of its shares. He couldn't identify the buyers.
"A lot of momentum players who have dropped the stock are starting to get back into it," said Peter Schaeffer, an analyst at SBC Warburg Dillon Read & Co. "People are realizing the company is solid."
Dennis Telzrow, an analyst with Hoak Breedlove Wesneski, agreed. "I think it (the stock) is steadily building back up as people realize that the problems were short-term."
On Nov. 19, Helen of Troy's stock fell to 11 15/16 from a close of 14 5/8 the previous day after the company said third-quarter earnings would fall 3 to 5 cents short of analysts' estimates of 36 cents a share. The company cited lower-than-expected production for the acquired lines of Dazey and Dr. Scholl's products, although it said the situation wouldn't have a negative long-term impact.
"We think (the stock) took an unfair hit," Johnson said. He added the company believes a big institutional investor got out of the stock after the preannouncement, though he's not yet sure which one.
The problems began after the company shifted production of the Dazey products to Mexico from Kansas City, Mo., which is where they were being manufactured when the products were acquired. The company wasn't able to ramp-up production in Mexico as quickly as expected, which hurt sales for the third quarter by about $12 million to $15 million, Johnson said.
Johnson said the company's manufacturing problems have been solved. Helen of Troy now produces the Dazey products in both Mexico and China, after a second set of molds was made. The company had already manufactured other products in China.
SBC Warburg's Schaeffer expects the company to earn 12 cents a share for the fourth quarter ended in February. His most recent 12-month share price target is 22, though he said he is likely to revise it soon. For fiscal 1999, he expects the company to earn 99 cents a share, an estimate he said is "very conservative," as it doesn't include any revenue or profit from the company's June 1997 acquisition of Caruso International, a steam hairsetter manufacturer that had filed for bankruptcy.
Telzrow, who recently initiated coverage of the company with a buy rating, also expects the company to earn 12 cents a share in the fourth quarter. His 12- to 18-month price target is 28.
Helen of Troy shares rose 11.5% Friday to close at 18 3/4, and on Monday the stock reached a high of 19 3/4 before settling back, ending the day unchanged.
Sergio |
