Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: PK who wrote (545)	1/28/1999 4:49:00 PM
From: Matt Brown	Respond to of 2489

SI starting to take notice, again! Highlights on SI: Perfumania Rande Is is an active participant at the PERFUMANIA. . PRFM . . . Discount Fragrances via Internet. thread on SI. He provides the following commentary on Perfumania (PRFM 9 1/8) and what they are all about. Below is his write up. Perfumania (PRFM) is the nation's largest fragrance retailer with 290 stores. Now they are going online. Initial deals signed with Amazon, Microsoft, Yahoo and E-trade. Perfumania will become a ''truly global'' Internet marketer of perfumes since it has the solution to the problem of the international consumer having to pay customs and shipping to their country. The Company's affiliate already distributes fragrances and related products through representatives in more than 80 countries. Perfumania.com intends to offer the lowest prices available for the more than 2,000 different products it will initially offer. Those products will include all major fragrances, from Giorgio Armani, Cartier, Fendi, Ralph Lauren, Gucci and Versace to Tommy Hilfiger and Cool Water. The offerings also will include the Company's own manufactured bath and body brands including Nature's Elements Skin Care, NE Sport and Jerome Privee. It is easy to get excited about PRFM... Facts: 4.5 million customers contributing to $180 million annual sales 15 million visitors/year to 290 bricks and mortar stores $3.96 book value as of Dec. 15, 1998 6.5mil outstanding shares and 1.9 million in the public float Recently hired KCSA [big Wall Street PR firm, which has dramatically increased the number of releases]. They are establishing internet hubs in nations around the world. Already they have registered at least a dozen .com names for countries including Mexico, Japan and the United Kingdom. Recently signed a distribution deal for Canada which includes Canadian internet sales. quote.yahoo.com... companysleuth.com... It is easy to get excited about PRFM knowing that it is the LEADING RETAILER of fragrances in America. Investors believe we will use the internet to buy books [AMZN, BAMM], music [CDNW, NTKI], clothes [BFLY, DLIA, SPGLA], computer hardware and software [EGGS, MALL], tickets [TMCS] . . . . Specializing in the sale of fragrances at discounted prices up to 70 percent below the manufacturer's suggested retail prices. And those that sell at a discount will obviously do better than those at full retail. According to the front page of Perfumania.com, the company will also be offering FREE SHIPPING anywhere in the United States. That is another big obstacle overcome by Perfumania, IMO. Nobody likes to add on 10, 20 or 30 percent of the cost of an item for shipping. I expect momentum to build... Some things just lend themselves well to being discounted and sold over the internet. In my opinion, Fragrances are one of them, because most people already know the fragrances they prefer. Perfumania can, of course send out samples of new scents with orders. Shoes would be an example of something nearly impossible to sell via the internet, unless it was a name like Florsheim, where you trusted the sizing as well as the quality. While the company has seen recent financial challenges, it is my opinion that the management has taken this bull by the horns in focusing their efforts on internet sales. With established warehousing, pickers, packers, customer service, managers, shipping, receiving, receivables and payables, the company is a long way toward establishing its internet presence. I expect momentum to build as KCSA could issue separate press releases covering their ad deal with Yahoo. . . . then their internet presence in Spanish speaking countries. . . .their ad deal with Amazon . . . .their internet hub in Japan . . . their ad deal with Etrade. . . . some new appointments to their internet division. . . . the completion of their warehouse facilities and operations for the new internet division. . . .their ad deal with Microsoft Network. . . .some new deals? . . . some more new foreign hubs and foreign distributors. . . the launch of the new website.. . traffic reports on the new site. . . . initial sales reports from the new site. . . . .tally of Valentines sales figures. . . .top line revenue increases due to the addition of the internet site. . . .and finally bottom line improvement. More thoughts on this and other subjects Anyone trying to play PRFM as a short seller should consider the sheer volume of news releases that KCSA has ready to issue, then cover their positions and get some sleep at night. I bought BAMM at 2.70, then tried to get others on Silicon Investor to notice it. Many jumped in, in the teens and thought they were brilliant when they sold in the high 30's. I sold at 45 dollars and still kept some free shares long. I intend on doing the same with PRFM. I bought from 2.50 up to 6 dollars and pending another e-commerce boom week, I fully expect to some similar moves as the story unfolds. WOW, Matt