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Non-Tech : PERFUMANIA.COM . . PRFM . . .FOR LONGS ONLY -- Ignore unavailable to you. Want to Upgrade?

To: DAY TRADER who wrote (2332)	6/8/1999 1:56:00 PM
From: debra vogt	Read Replies (1) \| Respond to of 2489

I bought in today, for the IPO run-up. Also had an excellent online ordering experience with them last week. My order was sent out accurately, quickly and with free shipping. Found this article in today's Dan Dorfman column at Jagnotes. FWIW: How Sweet It Could Be… As comedian Jackie Gleason used to say, How sweet it is. A sharp trader I know, never, ever quoted in print, is saying the same thing to me about Perfumania (PRFM) 3 11/16, a retailer and wholesaler of designer and brand-name fragrances. Though the company is losing money, the trader says he doesn't care and has taken what he describes as a sizable position in the stock. How come? It's a numbers game, he says, based on the company's announcement yesterday that it has filed an initial public offering of 2.5 million shares of its online business— Perfumania.com, an Internet-based subsidiary engaged in the same business as its parent. The offered shares will represent 33% of the online business's roughly 7.5 million shares outstanding, and is priced at an initial range of between 7 and 9. The parent has about 7.4 million shares outstanding, equivalent at its current price to a market valuation of around $30 million. Figure a mid-range price of, say, 8 for the online business and that gives it a market capitalization of $60 million, or a 100% discount to the parent's valuation. As the trader sees it, if the subsidiary is worth $8 a share and you allow only a valuation of $2 for the parent company, or half its market value, you wind up with a value of $10 for Perfumania. And he thinks its stock will trade at or very close to that price once the spin-off is completed. "You don't have to be a genius to figure it," he says. "You just look at the numbers and there's a substantial stock gain in the offing." Dan Dorfman does not trade the market. His stock market investments are limited to broad-based mutual funds. © 1999 JagNotes.com, Inc. All rights reserved. ------