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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?


To: Sergio H who wrote (1378)3/3/1998 10:42:00 PM
From: Cary C  Read Replies (2) | Respond to of 29382
 
>>The Making of an Herbal Superstar <<

Sergio another nice article on PURW that you posted to Redhead. Geezzz, where do you find these?

Sergio,I think Red may have found us from the FAMH thread.

Cary



To: Sergio H who wrote (1378)3/3/1998 11:44:00 PM
From: Magnatizer  Read Replies (1) | Respond to of 29382
 
Sergio

Great article. you are, without a doubt, part hound dog. Where you find all of this information on every company mentioned had to have something to do with your genes. <VBG>

Did a little research on PURW myself (don't worry I did not take any Kava prior to digging in)

Industry: All I know is I am as 100% natural as possible in everything I use in my home. From toothpaste to food to chewing gum. I realize what goes into and on the body stays with the body. This is not something I grew up practicing. I have been taught the values of natural remedies and products. To get to my point, I feel there are many people in this day and age who are learning the same stuff I have learned. Natural food stores are in every town. Dr Weil is on the best seller list. Nature is in and it is here to stay.

Sales Growth y/y 100% and calling for a continuation of that growth in the earnings announcement. This is definitely a GROWTH stock

EPS Growth y/y 866% (diluted) WOW! and this was done with a 49.6% increase in revenues. This tells me that economies of scale are tipping in PURWs favor.

Net profit margin of 18% vrs. industry ave. of 5% Earning .13 per dollar more than its competitors. This tells me they should have no problemo with cash flow, expansion, acquisitions, all the goodies that making more than your competition allows you to do....

Like paying off debt, if they had any D/E=0

Back to growth, Income rose 1050% (one year) vrs industry averages of 17.5%(one year) Thats self explanatory.

Sales growth of 92.4% (one year) and 14.68% (five year) also beat the industry ave. of 5.1% (one year) and 11.17 (five year) Once again they smoked the industry ave. soundly. Is this getting repetitive or what?

Things I found to be on the high side were P/B, P/S and P/CF but with the growth this company is forecasting those numbers are very, very, very low.

All of this and no analyst coverage. Where are they? What does it take? Oh yea, the Amigos need to get their share and beat the analyst to the punch before the price actually matches the potential. I know, SHHHHHH

Only 7.5 mil shares outstanding, that will work

On a TA side of things I saw 1) a huge GAP (20%) and 2) a bounce off a trendline connecting the lows from April on. I continued the trendline from the last low in October (prior to that stupid Monday in October when I made my first option trade on the Friday prior....but that is another story) to today. Anyway it left the trend in October followed by possible profit taking Nov-Jan ( a very nice double for many I am sure) Then in Feb it started to strengthen and now we are just waiting to get back on the trend up at 45 degrees. IF and this is a mighty big IF the stock retraces to the 8.40 level it may fill the gap all the way down to 7.00. I will be setting a stop at 8.30.

With the strength of last years record earnings coupled with rosy forecast by management the new trend line may be more of a 90 degree variety once the old trendline is broken with a close above it.

Disclaimer: I am a rookie take all of the above statements as the Opinion of a rookie. That said, how did I do?

HAPPY TRADES TO ALL
David