Dale,
I just found this thread on the Hot Subjects list and thought I'd share my favorite stock. I hope I'm not repeating something that's already been posted here.
Direct Focus is based in Vancouver, Washington but is listed on the TSE as DFX. They are a direct marketing company that uses television advertising to sell home weight training equipment under the Bowflex brand name. They are also in the process of introducing their second product line, high-end mattresses called "Instant Comfort" that feature adjustable firmness settings.
This stock has climbed continuously from C$ 0.12 at the start of 1996 to C$ 26.00 today. Their sales last year were approximately U$ 56 million, all from the Bowflex product, and Sprott (the only broker that tracks them) has projected sales of U$120 million for 1999 ($90M Bowflex, $20M Instant Comfort , and $10M Nautilus). DFX acquired Nautilus in January for about U$18M, primarily for the brand name and intends to introduce some new Nautilus branded products later this year.
DFX plans a Public Offering in the USA soon although details such as size, underwriting broker, and exchange (probably Nasdaq) haven't been released yet.
The year end results are expected on Feb. 22, probable before the open. My estimate is U$1.15/share which at U$17.33 (C$26.00/1.50) gives DFX a P/E of 15. The move to Nasdaq should give DFX a much higher P/E, I have a year end price target of U$40.00 based on earnings of U$1.90/share, allowing for some dilution and a lower profit margin, and a P/E of 21.
There is a Direct Focus discussion group under Canadian Stocks.
Delayed quotes and charts: canada-stockwatch.com
Press releases: fin-info.com there's also a link here to SEDAR downloadable documents where you can find financials.
Web pages: bowflex.com instantcomfort.com
Some Numbers: Message 7456122
Cheers, Gofer |
