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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (696)	8/30/1998 9:07:00 PM
From: Boyd Hinds	Respond to of 1722

Bob, re: your question about the competitive advantage PFINA has over SNA because they import products from Asia..... I looked at SNA's most recent 10K and they were not specific about percentages of products that they import. The company mentions overseas operations, and it uses hedging strategies to offset currency risk, but I believe that is probably because they sell a good quantity of products overseas. BTW: PFINA is not an exact competitor of SNA. To be more precise, they are a supplier of Sears, which competes head to head with SNA. Therefore, the comparison of margins and some of the other fundamental ratios may be a little misleading. For instance, I would expect that SNA would have higher margins because they are both a manufacturer, importer (I assume) and seller of product to retail customers. PFINA does not get retail prices for their products.