Perfumania article on SI. All that DD I sent all over the place last week is beginning to take root, one article at a time.
stocksite.com
Investors smell success for Perfumania
January 27, 1999
by Tom Taulli
Perfumania has been public since the early '90s; however, the stock has been fairly obscure. But now it has hit investor's radar screens. Of course, the company recently announced its intentions to go on the Web.
Actually, Perfumania is the biggest fragrance retailer in the US (with 290 stores). The company has its own products (Nature's Elements Skin Care, NE Sport and Jerome Privee), but also sells many brand names, such as Giorgio Armani, Cartier, Fendi, Ralph Lauren, Gucci, Versace, Tommy Hilfiger and so on.
To boost the site traffic, the company will leverage its 4.5 million customers and also sign distribution agreements with other sites.
Let's see what the SI boards have to say:
Colin Thorpe has good words for the retailer. . .
"My wife also likes the store and drives 10 plus miles to the only outlet in our area. While I approached this stock as a fairly quick trade, I might just get my cash back out and let the other portion ride for higher profits. Depends on how far and fast she goes. Don't have a knack yet for the long then short approach. Too new and too nervous."
Fatt Matt has done analysis on the prospects. . .
"1) I like the idea of the new website... why?
-It will probably dominate the web for perfume and cologne sales
-It is a well-known name. I have 2 of them in malls in my town
-They have very good prices and if you think about, when you are on the internet, you can easily shop around for the best quality/prices/service with just the click of a button.
2) Great name! Sounds kind of laid back and Caribbean to me!
3) VERY SMALL FLOAT
4) Spray and Gone. Something I also like about the products they sell are that you spray them and then they are gone. Back to the store in a few months. A lot of people stick with the same perfumes and if they can get them every 3 or 4 months at greatly reduced prices, then they are all over it."
Maryann M also likes the company. . .
"I truly think this will be explosive once the website opens. I already buy perfume at the brick and mortar Perfumania stores. Great discounts on a broad base of quality perfumes -- 35% to 70% less than a department store. My two favorites cost around $60 each at a department store counter. Perfumania has the same thing for $36. It is worth the trip to go to Perfumania. With the website -- no hassles -- just order, and get maybe even a better price."
*For a weekly e-mail newsletter of The Taulli Report, e-mail tom@taulli.com.
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