***UncleWest and All: PRFM - Good analysis. I think the action depends much on how the resignation is viewed by the MMs and the street. My thought, still, is that at least initially, it will be lost in the hype of what they are doing right this weekend and next week. This move can be seen as NOTHING but positive for them.
There is a growing belief that the ideal company of the future will be a mix of brick and mortar and cyber-delivery. Comapanies like Amazon have tremendous hurdles to overcome bacause of their sheer volume and lack of effective delivery channels and inventory stores. It is just now that Amazon is seriously expanding their distribution facilities, most recently I believe in Nevada.
This is the reason that I am hot on BKS. Sure there are expenses involved with brick and mortar delivery, but we are talking about exposure, convenience, and ultimate profitability..... if your goods and services are something that the public desires. A company with an effective, efficient, brick and mortar storefront .... can transition with relative ease to the cyber delivery method. BKS has a huge battle raging now to steal customers whose only real option, until recently, was Amazon.
PRFM, initially, will not have this problem as they are globally recognized, and their products, I believe, lend themselves well to e-commerce.
When you enter Perfumania, whether it be through a browser, or brick and mortar establishment, you are there for one reason ..... and most likely you know what you want before hand. This isn't Onsale, Ebay, or any of these other cyber shops that offer everything. Women especially, are loyal to their brands and if they can get their favorite brand at a significant savings.....they will.
The only negative factors I see are the recent CFO resignation and a balance sheet that is less than stellar. The balance sheet is typical of a company that focused on fast brick and mortar growth, too fast.
I would like to see the earnings and expenses but more importantly they have returned to positive same store sales and I believe they can pull of this venture into cyberspace without too much effort.....but we need to see those third party agreements to really lend credence to their efforts.
If you check the PRFM thread, look for very good posts from Mammon as for possible reasons for the CFO departure. It appears to be family power play with deep politcal reasoning. This happens very often and there is NOTHING yet that depicts anything other than this at this point. The CEO has not mixed words when he stated their current situation and past performance. This is not typical of a CFO resignation due to a "book" problem.
If you as CFO were being handcuffed and railroaded, what better opportunity to announce your intention to leave and go elsewhere....at a time when you felt you could cause the most damage.
I am not worried here about the CFO, it just doesn't add up.
And you know, if I thought it did, I would be open and honest here with my opinion.
Good luck to all on Monday.
TJ |
