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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (2344)	5/15/1998 7:17:00 PM
From: E	Read Replies (1) \| Respond to of 25711

>>Comments on GNII? 7/8 x 1-3/8 Stocks don't drop for no reason....Good buy here or black hole? I hear lots of people did lots of DD on this... ...Looking for a reasonable explanation (i.e more than a 3 word comment)<< A distributor of GNII products with whom I talked, Blaine Oelkers, said he was told that the reason the share price dropped is that a large brokerage house sold a lot of shares in the sharp rise that immediately followed the first stock-orientation the company gave to a group of their products-distributors. This orientation was just a a brief segment at the beginning of a conference call on other subjects, and more education of the thousands of new distributors that join each month will continue. If the growth of this company remains even close to what it is now it is a wildly good value here-- and the distributor, Blaine Oelkers, says it will exceed even that. He says company estimates are that by the end of this year, the company will have entered what he calls a "hypergrowth" stage. Here's a quote from an email to me from Blain Oelkers: "We added 4961 new distributors in April 1998, in March 1998 we added 4089 so the company is really on the move. A year ago in March of 1997 the company only added 453 new distributors." Click around the company website: ccnet.com Here are some excerpts from the website that tell you why people who've done a lot of DD on GNII are holding and increasing their positions: GNII markets its products through two subsidiaries, Royal BodyCare (RBC) and Great Xpectations (GX) which market their products through an international network of independent home-based distributors... RBC markets a line of over 200 high quality nutritional supplements, vitamins, minerals, herbs and anti-oxidants and offers the breakthrough mineral catalyst, Flanagan Microcluster, which makes any nutrient more available to the body.... RBC's personal care products include a collection of aloe-based skincare preparation. Branch offices and distributor points are in Canada, Indonesia, Japan, Sweden and South Korea... FINANCIAL HIGHLIGHTS 1.In October 1997, GNII completed a $1,250,000 private sale of one million shares of restricted common stock and warrants to purchase an additional one million shares for $2.00 per share. The additional capital will be used to finance the company's rapid expansion and current rate of sales growth, which has escalated over the past nine months from 5% per month to more than 15% per month. [Note that that says per month, not per year. E.] 2.Sales in the third quarter of 1997 were up 56% over the prior year and year to date sales were up 71% over the prior year. 3.Since March 1997, GNII has experienced a 143% increase in the number of new distributors signed up each month. NEW PRODUCT INTRODUCTIONS During September 1997, RBC introduced two exciting new products: 1.Microhydrin. Developed by Drs. Gael and Patrick Flanagan, it is the most powerful antioxidant in existence. 2.NutriCell Complex. A unique skin firming system which dramatically reduces fine lines and wrinkles and firms and lifts sagging skin. [That's enough excerpting; click around the website. I added the bolding myself.E.]