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Strategies & Market Trends : Brand Name Values and Turnarounds -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (53)	4/30/1999 11:05:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 82

Looks to me like Fruit of the Loom qualifies as a beaten down brand name. Company says that earnings problems relate to their inability to meet demand. Not sure I believe that (or that co. will now ramp to supply that demand and make good profits doing it), but as long as people continue to wear underwear, I think FTL has a business opportunity. Price near its lows, low pe (of course, with textile stocks), and psr is near its relative lows, and relatively low p/bv. I think the psr ratio is key here since revenues don't seem to be growing. The low ratio indicates a buyer now is paying relatively less for each dollar of sales. But my bet is that, as long as sales can continue- I'd expect that psr would revert to more 'normal' past years' values (and so stock price will have risen). Figure within about 2 years. JMO. So I've started a small position. Paul