Perrigo Co. Message Board

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  • battingonethousand battingonethousand • Dec 19, 1999 10:30 PM Flag

    PRGO added to Magic

    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)

    Any
    constructive advice would be appreciated.

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    • rreding1 rreding1 • Dec 20, 1999 12:25 AM Flag

      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.

      • 1 Reply to rreding1
      • battingonethousand battingonethousand • Dec 20, 1999 11:14 AM Flag

        Thanks for your input. It is indeed helpful.


        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.

        Thanks
        Again!

        B1000

 
PRGO
119.03May 20 4:00 PMEDT