Hi Gord,
no share buyback! not the time... until we reach 250 000 000
in annual sales ;)
o.k. guys... it's time to show your expertise! Read the full
story at:
edgar-online.com and do a company name
search for direct focus. You will find the s-1.
one interesting point is that they have included the performance
of Nautilus, pro forma, as if it had been acquired on 1/1/98.
you will find that for last year, Nautilus generated sales of
19.3M, Gross Margins of only 27.7% (compared to 78% for DFX,
and bled at the rate of 3.3M/yr. i.e., Nautilus would've caused
DFX to lose 34cts/shares.
However, further down, I read that Nautilus (for fiscal year
ending 6/98) generated sales of 20.7M and lost 6M (excluding
charge). Has the situation at Nautilus improved? what gives?
Darn... DFX in litigation with Soloflex. They've filed suit against
DFX and R Potter, VP of marketing. Who are these soloflex guys??
Our home fitness expert Carson will surely know ;)
proceeds of the secondary will go towards developing new Nautilus
stuff. Also a 2nd assembly plant in Western US. Maybe another
acquisition...
I get the feeling that DFX really payed for Nautilus with stock,
a posteriori... the secondary will replenish their coffers to
slightly higher level than before the acquisition. Without it,
cash would be on 3M.
Sales of Bowflex power pro accounted for 93% of sales in 98.
Not many beds sold yet! gross margins expected to be lower for
the beds, at least at the beginning. However: DFX expects an
INCREASE in percentage gross product of Bowflex product due to
east coast manufacturing facility. This will buffer a little
Nautilus effect.
DFX working hard at improving Nautilus results... read all about
it! They have hired a NEW management team (anyone knows who they
are?)
direct focus.com!!! 10% of sales were generated from the bowflex
web site. p.e. of 400, here we come. Let's outdo Don Carson:
DFX@800$/share in 2000.
I'm getting tired here... Hold on to your shares!!! Cook selling
only 25K, Rice 12.5K, Potter 12.5K. The big seller is a certain
Little selling 100K. Seems to be a private investor.
I'm out of here!
Trilobyte
p.s. couldn't find anything on the underwriter D.A. Davidson.
Who are these guys and what is their claim to fame?
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