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Nautilus Inc. Message Board

  • joker_78_21 joker_78_21 Jun 25, 2003 12:55 PM Flag

    Why buy nls?

    I just bought nls. Here's why:
    Quantative data:
    PE is below 5. The company has 0 long term debt and quite a bit of cash $60 million. If you subtract out this cash from the market cap, the PE would be under 4. That's a 20% return. Also, Nautalis is one of the few companies that has had a 50% growth in earnings in the last 5 years. You can see this from yahoo stock screener. So, it looks really good to me from that stand point
    Qualitative data:
    I've used the TreadClimber in the gym. It's a great product as mentioned in the previous section. Also, I notice that there's usually a line for it. I haven't used bowflex, but I've heard good things about it and the ads make it look good. I would consider getting it if I had room for it. So, basically their products are out there, being used. When the economy turns around this type of big ticket item will be towards the end of the turn around because consumer confidence needs to be very high to buy this stuff. So, basically it is a cyclical stock and quite possibly near the bottom of the cycle.

    In conclusion, this is a great company that has great product, in a cyclical industry that is most likely near the bottom of the cycle. On top of that, it is selling at bargain basement prices. I'm not saying it will be at $30 tomorrow, but if you are patient, I think this would be a great addition to any portfolio. This is the type of stock that Warren Buffet likes to buy. Am I missing anything?

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