To: Jim Cash who wrote (4085 ) 1/29/1999 8:46:00 AM From: William Bach Respond to
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
internetdivision. . . .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.
More thoughts on this and other subjects:
