Thanks Tom: I guess they didn't know they had one of the better companies in that industry right under their feet (a bit of a pun, sorry).
Liked the statement;
According to Barrie Riome, Dr. Scholl's
Canadian director of foot-care marketing, there was a
20-per-cent increase in consumer spending in l998 for all
brands of foot-care products. "This growth rate puts foot care
among the fastest growing categories in the health-care
industry," Mr. Riome says.
A couple of weeks ago, I wrote to the CFO, David White.
I had a few questions I hoped he'd answer.
Here's part of what I wrote:
Dear Mr. White:
Like what Footmaxx has done to date
but as an individual investor, always feel like I'm dancing in the dark, waiting for the next surprise.
Can you confirm a few things for me?
Growth of units placed has been great - has growth rate continued this past quarter?
Growth rate of revenues has been great - has growth rate been sustained?
Unfortunately, growth rate of loss has been keeping pace with revenue
growth - have you been able to tame this burn rate?
Any answers or comments are appreciated.
Thanks.
Here's his reply which I didn't post before because I'm not sure if it's corporate double speak or just that he's a busy man who chose to be brief with his answer.
Units placed continued to increase and monthly sales for the 4th quarter exceeded $1million per month for the first time. Cost reductions were put in place in the quarter to reduce the burn rate.
So, what does that mean?
I believe there was a news release that said that in October they had their first $ 1 million month. His phrasing could mean and should mean that they managed to average that for each month in the 4th quarter. That would be great.
He says units placed have continued to increase but he doesn't say at what rate.
And, he doesn't give any detail about how effective they've been in reducing the burn rate.
I think Mr. White was just being brief.
In actual fact, he had no reason to reply to my note at all.
He's the CFO not an investor relations person.
I continue to like this company.
I thought we'd see the price seeping down to where it is now.
I'm tempted to add more.
Good luck with it,
Cush |
