Parlux (PARL) Fragrances Message Board

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Non-Tech : Parlux (PARL) Fragrances

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To: peter lo who wrote (178)	12/16/1996 7:11:00 PM
From: M Goodson	of 527

I said I would wait until the stock fell below $3.50, but I bought at $3.56 instead. I guess I should have waited. My portfolio is down over $10K and I started buying at $7 per share. If there's a serious financial problem, here's the extent of it: Cash flow is the biggest deal out there. Over the first six months of this fiscal year, the company received $32.5 million from customers, but it spent about the same amount on inventory. If there is any credence to the idea of the market discounting some of the company's inventory, as presented by Wayne in Reply # 172, this would be the justification. The company would have to anticipate some very strong revenues over this quarter to justify such a strong investment in inventory. We have mentioned the several new doors to which the company is selling this quarter as opposed to the previous ones. I don't believe the company will issue more shares at the present price because of the stock's low market value. It would be more profitable for the company to acquire loans at around 11 percent and just pay the higher interest. Then there's the issue of stockholder's approval to increase the number of authorized shares of the company ; there is no way this is happening after this beating. The company has to do something before the next meeting or else we will likely have a real change in management. People don't like to lose money, heck I don't even like to see the value of my portfolio decline. This brings another matter to mind. Did anyone attend the last shareholders meeting? What did the company say about the decline in the market value of our shares? It was down considerably back on October 1. What kind of assurances did they offer? And Peter, don't waste your time listening to brokers unless they can point out the particular problem. The company can definitely be sold and as I noted earlier this stock can definitely fall under $3 per share if it fell this far. There is nothing to warrant this collapse in value and so there is no reason to think that it won't continue. But I, like any other shareholder who did not sell short, hope this trend does not continue.

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