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Non-Tech : Parlux (PARL) Fragrances

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To: notime who wrote (163)12/10/1996 4:43:00 PM
From: M Goodson   of 527
 
I think I would be the last person to ask why people are selling their shares in this company, because I really don't know. The only negative news concerning the company has been its cash flow. The degree to which this supposed problem of cash flow should depress the company's value is a matter of which I have little familiarity. Estee Lauder, Avon, and Revlon have negative cash flows for operations and they are doing just fine. Heck Revlon doesn't even have a book value. The market clearly is concerned about PARL's cash flow to the point of taking substantial losses. Many may be taking these losses for tax purposes. Certainly many have seen their stake in the company decline in value.
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