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Perrigo Company Public Limited Company Message Board

  • Kelmac48 Kelmac48 Dec 11, 1999 9:36 AM Flag

    PRGO added to Magic

    I just bought PRGO this week after reading about
    the company in Individual Investor. It has been added
    to the Magic "25" collection of stocks for the year
    2000. Link below; just scroll down at entry.

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    • run a company not computers. Just unloaded the
      last of this dog. Owned 35,000 shares at one time and
      was always told prosperity was just around the
      corner. Watched as they shot themselves in the foot six
      times. Now I find out they are reloading their gun. I'm
      sorry but the moral at this place stinks find someone
      who works there and get an earful. Whoops , I here
      them pulling the hammer back.

    • Just some thoughts on insider10101's comments on
      Perrigo's computer upgrades.

      The system that Perrigo
      implemented in 90 was an MRP II system. The old system just
      could not support the growth that Perrigo was seeing at
      the time. They also switched platforms to an AS/400
      system. SAP is an ERP system whose development company
      invests hundreds of millions of dollars per year in new
      development. Yes the implementation hurt, but there are a lot
      of companies that have messed it up worse. It is a
      VERY complex system, and many of the issues were with
      user training, not the software itself. This software
      should provide Perrigo with great functionality for many
      years to come. The question mark is whether Perrigo
      will be able to effectively use this functionality to
      improve their productivity and profitability. Time will

    • While you are basically correct I think you give
      the national brands way too much credit. They are
      losing their franchises every day as people continue to
      refuse to pay up for national brands. Store brands are
      the fastest growing category, and national brands are
      forced to pay not only slotting allowances but
      promitonal advertising. Remember that drug stores/wall mart
      are nothing like a supermarket. There is no end of
      isle space that has coke, pepse, nabisco or any other
      features. The national brands sit on the shelf squeezed in
      between the store brand. There is no premium spot.
      However, if they don't pay then are going to be right next
      to that big sign that tells yo uthat if you buy cvs
      acitominophen instead of a national brand you will save 50% or
      more. That is big bucks to the consumer. And, if the
      economy slows then more people will be switching to the
      store brands. Good for PRGO. It just sure seems to take
      these PRGO guys a long time to get their act together.

    • I have always said altough remote. I felt PG
      might be interested in PRGO. PRGO is out of lower
      margined personal care. PG only likes brands that are one
      or two in their market. PG commands a lot of shelf
      space, so does PRGO. PRGO is #1 in generic OTC's.
      Dosen't it make sense for PG to buy PRGO, and expand the
      margins of their branded products, and PRGO's generics (
      less competition from generics)since you own the
      largest. Anybody on this hypothetical?

    • No I don't own this stock anymore. I owned it
      since the ipo. It took off at first and all was well.
      The last 5 years it gave back all the gains and went
      nowhere. I finally bit the bullet and sold for 1999 tax
      loss of about 25,000 dollars ouch.

    • i have bought, sold and followed perrigo stock
      for about ten years now - through the pre-occupation
      with the shareholders law suit, the many bad quarters
      due to "mild flu seasons" the staff rationalizations
      and ensuing poor morale, the write down of russian
      investments (russia fooled many more companies than just
      perrigo),the under performing person-care products business
      sale and most recently the implementation problems
      with their new sap enterprize software and the lost
      market share that resulted. With all of this bad stuff
      over and done with and with many positive developments
      occuring, i have never had as good of a feeling about this
      company as i do now. The company seems to be very
      prepared to compete in the new internet b2b environment
      now that its enterprize software is up and working, i
      see perrigo's nico-derm patches prominantly displayed
      in about every store imaginable (have you noticed
      that the patches are know far cheaper than a carton of
      cigarettes? - this might mean something) , maybe the "mild
      flu season" excuse was bogus, but if not, this year
      ought to be stellar flu season! Finally, if you look at
      the way folks have been loading up on consumer debt,
      you gotta beleive that american households will start
      to look for ways to save their pennies pretty soon.
      Perrigo is the leader in its industry, and they say that
      their mexican subsidiary is doing really well. Mexico's
      economy is booming by the way. I have loaded up with a
      ton of perrigo stock in the belief that the downside
      risk in minimal while the upside potential is very
      great. Perrigo has had one solid quarter so far, however
      the results have been somewhat obfuscated by the sale
      of the consumer products division and resulting
      lower total revenues. If the next quarter or two
      continues this upward momentum, then this stock should do
      extremely well - even if the stock market as a whole
      corrects-, if not, the worst case scenario looks to me to be
      sideways and not down.

    • A little insight into private label products. At
      the buyer level, margin and inventory turn are the
      key factors in determining what goes on the shelf.
      This gauge is called the GMROI. (Gross Margin Return
      on Investment). The formula is =margin*inventory
      turns. Margin is calculated as =((retail price -
      cost)/retail price). Inventory turns are calculated as total
      yearly sales at cost/ average monthly inventory at cost.
      98% of all the private label products I have bought
      for the last 21 years have a higher margin than the
      branded products. Private label fuels profits. I just
      bought last week at 8 1/8 because of my experience in
      the significance of private label development for
      profits in the coming years.

    • Thank you for the excellent posts. The last
      several posts have been GREAT. For a long time this
      message board was dead.

      I'm another holder of this
      stock that is dumb founded by it's lack luster
      performance over the years. I'm still trying to be optimistic
      for the future of this stock.
      1) The personal care
      business and it's low margins has been sold.
      2) Mr. J
      is not happy with past performance which is the
      first step towards improvement.
      3) RX drugs prices
      have experienced annual double digit price increases
      for the past two years. This should increase future
      use of non-rx drugs and generic equivalents.
      Buy-out opportunity. PRGO could be a candidate for a
      takeover by a major drug company or a major retailer such
      as Walmart.

      Right or Wrong, I blame Mr.
      J. for past performance failures (lack of Leadership
      and Vision). He's the largest shareholder and has
      significant influence over PRGO Board.

    • You have broadened, and extended my knowledge.
      Thanks, and good investing to you. As for you,Insider
      10101. I think you have to be looking from the outside,
      to see what I like about PRGO now. As I've said
      before. Time has a way of catching up with boards, who
      keep making mistakes. I don't know this board well
      enough to judge them yet. You said your looking to bail.
      Wondering what can get this company to move? The answer
      could (50/50) be right around the corner. PG talking
      merger with American Home and (or) Warner Lambert. This
      could create a branded name powerhouse. This could
      possibly be the thing that gets PRGO's margins to expand?
      I could be wrong, but have put money on it.


      As someonE associated
      with Perrigo, I'm not sure how to answer that
      question. But, you're questions are refreshing and

      Mike J. has made some obvious mistakes
      (Hammond --hindsight---(he had hell of a resume though- I
      would have hired him)with personell: --- So what!?
      Eisner hasn't had a good track record lately either.
      After MANY years in this business, Jandernoa IS THE
      most respected Exec. in the P/L business ---PERIOD!

      Was SAP a
      disaster ---YES! I often think that the greatest salesman
      in the world has to work for SAP. EVERYONE ---from
      G.E. -J & J, Gillette, has gone through this -- How
      many Hershey candy bars did you see in retailers this
      last Halloween ___ If you guessed 0, nada, you were
      right.Mike did it for a good reason! ---- and to all of
      those investors that can't stand the heat, or
      understand the reasons why the decison was made -----
      SELL!--go buy Qualcom.

      As far as some of your
      other questions/points:

      1) Slotting allowances
      ARE important to SOME retailers, These are buyers
      whose compensation is based upon "how many excess
      dollars can I bring to the bottom line this quarter."
      Thankfully, these short term thinking companies are becoming
      fewer and fewer. Big W is NOT one when it comes to
      Store Brands."

      2) Brands Slotting Allowances

      Buyers are not stupid! If a P and G comes in and offers
      a $100,000 per sku slotting allowance for a new
      product --- anyone and EVERYONE will jump on it----but
      with no guarentee as to how long it will stay on the
      shelf. Sounds crazy --- but's that's the big MFG.guys
      profit margin philosophy prevailing --- Win One, lose
      two ---O.K. Still a bottom line winner -- to

      3) The "Store brand consumer" today has much less to
      do with income --- than "EDUCATION." That may fly in
      the face of what you may percieve as the typical
      WalMart consumer --- but it's a FACT!

      Joe's" based in So. Ca. examines a market STRICTLY on an
      educational basis. A school teacher making $35,000 a year is
      a much better shopper and customer than "Jethro,
      from the Beverly Hillbillies"

      In England, 70%
      of HBC products are private label!! That doesn't
      make sense to all of us that have had billions of
      dollars of advertising "shoved down our throat for brands
      for twenty -forty + years" -- but that is where the
      U.S. IS going to end up in ten years. P.S. Don't tell
      those MGTG MGRS. that are spending all of the money on
      the Super Bowl. Marketing (brand) had miscalculated
      the intelligence of the public for many years --- or
      they have to justify their jobs! --- payback is

      Today, Prgo is the leading purchasurer of such raw
      ingredients as acetimetaphen, Ibupro. etc.--That's going to
      happen in all categories soon.In MANY categories, P/L
      outsells the brand --- retailers make virtually no money
      or little, on the brands and 50% to 80%+ on P/L. If
      you were a retailer, where would you put your
      efforts? --even in light of the slotting allowances I'm
      going to fleece the National Brands for.

      brands are in long-term trouble and Perrigo is the ONLY
      company in a position to take advantage of this rise in
      buying patterns.

      thinking mgt.

      A BuY? Yes --- if we can get the
      street to watch it.

      Sorry for the disertation
      --- but you asked.

      best regards

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