Sid,
From my experience, your point is accurate that there is now considerable awareness of Hello Direct among the general public (and perhaps even more so among small business owners) as the major supplier for telephones and headsets, after several years of constant bombardment with catalogs. Transitioning this customer base to the internet can (and should) be done gradually over another couple years, with a reduced but still highly visible print catalog which reminds everyone they now have a web site, and providing incentives (special offers, etc.) for using it.
A previous post noted the small float and said this could be significant "when the stock starts to make a move"; I would say that it already has, now up 40% from its recent lows brought on by the selling pressure which you nicely detailed. The potential to make a big move if earnings are good, and to actually overshoot any reasonable estimate of its value, and then to sharply correct, is very real.
Let me mention again where I think the major sales potential lies - headsets are going to increase in sales dramatically as voice interaction with computers and other similar devices takes off - and there will be at least a couple upgrade cycles, as better noise cancellation technology gets incorporated and cheaper. Not that there isn't plenty of potential in wireless phones, answering machines, etc. still, but this sector is going to come out of nowhere, and as opposed to the others, is the one where HELO has a clear perception as the place to go to get good stuff.
Bob |
