In general I hate it when people pitch stock X on the thread of stock Y, but I think a good word for Hello Direct (HELO $13 9/16) is legit here because, while HELO does compete with PLT, it is also a dealer for PLT, carrying some of PLT's products in its catalog, both paper and online (http://www.hello-direct.com)
The same things increasing demand for PLT's headsets apply to HELO's as well. One major difference between them is business models - PLT sells through dealers, while HELO sells direct to users. PLT has a good website, but all it can do if you like the products is direct you to a dealer - PLT can't sell direct without alienating its dealers. So HELO is Dell to PLT's Compaq, and I think the Dell model will produce faster growth.
I am bullish on PLT, but more so on HELO, which I think will have faster growth and sells at a lower multiple (based on my guess of $0.80+ in eps for 1999.) Of course, PLT is a pure play on headsets, while HELO does half its business in other products, but they have good growth potential too. And over time HELO will benefit from the growth of people's willingness to buy things over the internet. Anyway, I think it is worth a look. |
