I have been looking at this stock over the last week. Several other small caps popped with their addition to the INDI Magic 25, but this one did not. Why?
They have cut bait on the personal care division. They appear to be making strides in controlling costs and boosting sales. It looks to me like their products are available almost everywhere. One drawback I see is how much stock top management owns. I have seen this type of situation before (PTII, which sells bicycle equipment), but I am still intrigued.
I am thinking of picking up some of this stock, since at 7-8ps it seems like such a bargain. Does anyone have any genuine thoughts about where the company plans to go from here? The business model seems to work (for now), but solid companies should always be looking for other areas to exploit their success (note priceline)
Sticking to their MAIN business is a plus. Running the current businees efficently to be the lowest cost producer gives them big accounts and volume. Expanding the business with new current offerings, like the smoking patch could spell big growth. Personal care was cut throat and cost them dearly. Seems like you think they should be selling over the internet. This is costly to start up, for a company that looks to be turning around. It could also backfire and alienate their present customer base. If business turns around, then you will see management buying (via) exercising stock options. In this range, I feel the risk is worth it. Hope this helps.
I think I am on the same page as you. I think that the company is a good risk, and exposure from INDI can only help. With a little push from the Magic 25, perhaps the company will be picked up and reviewed by someone. I do not understand why BofA or the others have not renewed since the divesting of the personal care line.
Two questions for you, if you don't mind:
1) Where do you find out recent insider activity? Yahoo's stuff is a little dated, but maybe that is all they are able to see.
2) With little chance (I think) of them being bought out by someone in this merger-frenzy world, are their other competitors out there that could be acquisitions? They probably reaped some cash for their recent sale, so I'm trying to think what they might do with it...
Gotta split - kids are antsy right now. Took a day off to go into NYC, and I can't spend too much time online.