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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (377)	5/9/1999 1:31:00 PM
From: Questerr	Respond to of 418

I too like buying the more speculative type stocks, in fact that is how I stumbled upon this one. I was buying the FC story, and when it didn't pan out, I called the CFO to make it clear how upset I was. But after talking to him at length (1 hour phone conversation followed by others) - I have quite literally bought into the ALU story. The story doesn't scream off the page at you, it is really beneath the surface. While I am quite sure other uncovered nuggets exist out there in the investing universe, I am pleased to have stumbled onto this one. Lately, I have become more and more comfortable with Allou's approach. They don't view themselves as brick and mortar company - quite the opposite - a double digit growth company. Even though their foray into the I-net world didn't go exactly as planned, some of that was caused by the product FC was trying to sell. Allou couldn't lower the price on their perfume lines, for fear of retribution from the manufacturers themselves. And lower prices plus convenience is what the I-net shopping experience is all about. Notice that all department stores sell perfume and cologne for the same retail prices. Perfumania.com was the only one I am aware of selling at below suggested retail prices. (I am not quite sure how they accomplish this.) Allou hasn't given up on the I-net, in fact, they will be launching Allou.com (Health and Beauty Aids) sometime later this year or next. The difference this time around, though, is they can cut the prices of Health and Beauty Aids as much as they choose - not constrained by the perfume manufacturers. Allou is a wholesaler, they can match any price that can be offered by the Walmarts or deep discount Price Clubs. In fact today, Allou sells to all of Walmart's competitors! With the huge investment of Walmart into Brick and Mortar, they, like Barnes and Nobles have significant $$$ tied into the retail shopping paradigm/model. Allou can take the game to the next level if they so choose, in challenging these behemoths on the I-net - all the while enjoying their very own proven and profitable Brick and Mortar strategy. Owning a stock whose price is less than book has never been my method for investing, but this time around I must admit I am somewhat intrigued with what I see!

To: AJ Berger who wrote (377)	5/9/1999 2:39:00 PM
From: lifeisgood	Read Replies (1) \| Respond to of 418

I'm not sure you should call Questarr's investment in ALU an investment debacle. Your purchase of NAVR at 17 is an investment debacle. There is a big difference between the kind of gambling that you do and investing in companies with demonstrated histories of earnings and earnings growth. During the next major market downturn I'll probably be bottom fishing lots of stocks like this, but for now, there are far too many growth speculation stories to play than tie up my cash here. Stocks like ALU will be relatively safe during market corrections, a major one of which may occur soon. Gambles on speculative growth companies will make paupers out of many people during even minor (10-15%)corrections. I wish you well on your investments but hope you realize the difference between speculative gambling and investing before it is too late. regards, LIG