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Sniffffff…..Ahhhhh….can you smell the chemistry? Let me tell you a story about aroma. When I was a sophomore in college, there was a girl in our dorm who, for whatever reason, I was always thinking about. Let’s just call her “Jane”, to protect the guilty. Understand that $$$MR. MARKET$$$, in those days, only sported 16” biceps rather than the 19” monsters I presently carry around. As a result, I was not as confident in my pursuit of “happiness” as I could have been. Anyway, in the basement of the King’s Court dormitory was this pinball machine called “Countdown”. Back then, having high score on “Countdown” was probably the equivalent of winning the Heisman Trophy (well, at least for me it was…).
One late afternoon, after a typical lunch of 18 beers, Chili Con Carne and a meatball sub, I was flailing away at “Countdown”, really banging that pleasure machine. I was on my 3rd ball…and it was one of those magic balls…I had knocked down all the flags and every bumper I hit was now worth mega points. I was on the verge of scoring an “extra testicle” which would have assured me the almighty High Score! And I had the trustworthy Tovsky as my witness! Needless to say, all of this excitement was causing me to lose most of my sphincter function, and a certain amount of anal leakage was taking place. Well, actually it was more of a flood, than leakage. Let’s just say they could have drawn a geology map around all of the natural gas that was being produced at this West Philly location in the King’s Court basement.
Of course, that’s when Jane walks over to the pinball machine and says, “Hi there, $$$MR. MARKET$$$!” Now I could have let the ball drain, made a quick dash for the soda machine and bought my dreamgirl a soda, and then make a statement like, “Gross…Tovsky what have you been eating???”. You know the old “supply, deny eject and deflect” trick. Of course I didn’t though. What college boy would ever turn down a shot at the Heisman? Jane, on the other hand, was a little less than impressed by my quest. The words, “Ewwwww….yechhhh…and blechhhh!” somehow linger in my memory the same way the methane molecules hovered around the blinking and pinging “Countdown” machine that afternoon. Did you know that when you smell something, scientists have proven you are actually tasting it? That’s right, those molecules are really landing on your tongue. Although I did set the High Score that day, I remained dateless that evening. If only I had liberally applied some Paul Smith’s Extreme men. Then I would have smelled like the structured elegance of wood combined with sophisticated modern musks and mellow Tonka beans providing the fragrance with its masculine sensuality and reassuring comfort. Instead I smelled like processed baked beans and Jane treated me like wood.
Today I bought IPAR (Inter Parfums) at 28.11. I will sell it in 4 to 6 weeks at 32.46. Here’s why I like IPAR:
This company (formerly Jean Philippe Fragrances) makes domestic and international brand name and licensed fragrances, cosmetics and personal care products. Can you smell the chemistry? Through innovation and commitment to creating quality products at reasonable prices, Inter Parfums seeks to be a leading provider of fragrances, cosmetics and health and beauty aids.
IPAR is up over 400% over the last 52 weeks. It’s P/E of 45 makes it a relatively risky $$$MR. MARKET$$$ but…if you want to run with the big dogs, you have to get off the porch.
IPAR is not a US company. This is good because International sales are key for Inter Parfums. More than half of the company's revenue comes from global markets in Europe, Asia and the Middle East. All the pretty boy stuff I use is usually in my closet for years. I think people in Europe are like the “Real Men of genius”… Mr. Way-Too-Much-Cologne-Wearer.
Inter Parfums' launch of the latest Burberry fragrance, called Burberry Brit, has helped drive revenues significantly. Bouyed by current market conditions, Inter Parfums recently raised its financial guidance with sales next year seen reaching $217 million. $$$MR. MARKET$$$ believes that Mr. Way-Too-Much-Cologne-Wearer will propel sales to something closer to $233 million in 2004.
Analysts polled by First Call expect the company's 2004 profit to move up to $0.78/share but $$$MR. MARKET$$$ believes that the enhanced sales will translate to $0.84/share. Is IPAR overvalued? Of course it is. But I don’t care…if it can sustain this PE for a few more months, I’ll easily hit my sell target. This is momentum investing at its finest…and certainly not for the fainthearted. In the meantime, IPAR churns out a respectable ROE of 13%.
Consumption of luxury items should strengthen if the U.S. economy grows according to forecasts. Even if it doesn’t, the company is well positioned to weather cyclical markets because of its geographic diversity. The good news is that Inter Parfums doesn't only target upscale shoppers. About a third of its sales come from deep-discount retailers such as Family Dollar Stores Inc., Dollar Tree and Dollar General Corp. You don’t need a lot of money to want to get laid. The annual global perfume industry is about $40 billion. That’s a lot of colored water being splashed around.
IPAR’s market share is around 4 to 5%. This means that there is tremendous room for growth in this fragmented industry, for those who execute well. Inter Parfums uses contractors to make its products and keep costs in check. That lets the company focus on bottle design, packaging and coming up with the right scents. This way they don’t have all of their cash tied up in factories and fixed capital. They do have a lot of cash ($40 million) and have no long term debt. They can use it to make leveraged acquisitions of earnings that they can throw at their extended P/E. Or…if one of the behemoths wants to make a move, IPAR would be very very easy to swallow in an acquisition.
IBD gives IPAR an Overall Rating of 99+ and recently featured it as the #1 company in its IBD 100. Yes, $$$MR. MARKET$$$ is getting in late but all I want to squeeze out of this bad boy is my 15%. EPS has been growing by 26% over the last 3 years while sales have kept pace at a rate of 17%. It’s predicatability is great. It's a simple, low-cost, high profitability business that's easy to track. Inter Parfums' product pipeline and launch schedule are strong which will continue to support its revenue growth. Their focus for 2004 will be the continued rollout of the Burberry Brit line in Asia, South America and the Middle East. Other planned new fragrance launches include S.T. Dupont, Paul Smith and Christian Lacroix. The company was also in discussions to acquire or license additional brands in the areas of perfumes and personal care products.
The company's prestige fragrances have an average life expectancy of five to 10 years, with retail prices from $30 to $80. (Eighty bucks!!?? Holy Moley!) Now you know why margins are around 50%. It goes to show you…sometimes you can’t price something high enough. Some people WANT to pay more! IPAR’s portfolio is made up of seven principal brands, each with several product lines. Burberry products account for about 40% of sales.
Here is what the real man of genius had to say. Jean Madar, Chairman and CEO of Inter Parfums, stated, "Year 2004 will be marked by the continued rollout of the Burberry Brit women's line in Asia, South America and the MiddleEast, and the proposed launch in the fall of the Burberry Brit for men line in select markets. We likewise have high expectations for the new projects unfolding in 2004 under our S.T. Dupont, Paul Smith and Christian Lacroix brands. In addition, we have made strategic hires for our Diane von Furstenberg Beauty line, with the goal of growing sales domestically and expanding distribution beyond North America. Finally, the proposed acquisition of a majority stake in Nickel, which specializes in skincare products and spa services for men, represents a major strategic growth opportunity. This acquisition should close in the 2004 first quarter” " You have to love those spa services for men. There’s nothing better than sitting around in a bathrobe with your coconuts hanging out in the breeze, watching college hoops, eating pistachios and drinking freezing cold Coors Lights after an executive workout. Now you can smell good too.
Mr. Madar went on to say, “The better than expected growth in the second half of the year also reflects an excellent reception of Diane von Furstenberg Beauty, our first ever line of prestige cosmetics. U.S. distribution, which is planned for 35 doors, began in September at Henri Bendel in New York, and is presently in select Saks Fifth Avenue and Nordstrom stores.” No place better to shop when you’re in a bathrobe with your coconuts hanging out than at Saks. Just imagine after sprinkling on some Christian Lacroix Bazar Men.
It would be like sparkling notes of yuzu, grapefruit, water fruit and lavender provide an intensely energising and refreshing note. The middle note, blending ozone accord and woody notes of cedar and elemi, leaves a mysterious, ethereal and yet very tactile veil on the skin. The skin warms to patchouli leaves, sandalwood, oak moss and dry amber.
Can you just picture $$$MR. MARKET$$$ in this ethereal splendor, kicking back with his ankles crossed?
I didn’t think so either.
One late afternoon, after a typical lunch of 18 beers, Chili Con Carne and a meatball sub, I was flailing away at “Countdown”, really banging that pleasure machine. I was on my 3rd ball…and it was one of those magic balls…I had knocked down all the flags and every bumper I hit was now worth mega points. I was on the verge of scoring an “extra testicle” which would have assured me the almighty High Score! And I had the trustworthy Tovsky as my witness! Needless to say, all of this excitement was causing me to lose most of my sphincter function, and a certain amount of anal leakage was taking place. Well, actually it was more of a flood, than leakage. Let’s just say they could have drawn a geology map around all of the natural gas that was being produced at this West Philly location in the King’s Court basement.
Of course, that’s when Jane walks over to the pinball machine and says, “Hi there, $$$MR. MARKET$$$!” Now I could have let the ball drain, made a quick dash for the soda machine and bought my dreamgirl a soda, and then make a statement like, “Gross…Tovsky what have you been eating???”. You know the old “supply, deny eject and deflect” trick. Of course I didn’t though. What college boy would ever turn down a shot at the Heisman? Jane, on the other hand, was a little less than impressed by my quest. The words, “Ewwwww….yechhhh…and blechhhh!” somehow linger in my memory the same way the methane molecules hovered around the blinking and pinging “Countdown” machine that afternoon. Did you know that when you smell something, scientists have proven you are actually tasting it? That’s right, those molecules are really landing on your tongue. Although I did set the High Score that day, I remained dateless that evening. If only I had liberally applied some Paul Smith’s Extreme men. Then I would have smelled like the structured elegance of wood combined with sophisticated modern musks and mellow Tonka beans providing the fragrance with its masculine sensuality and reassuring comfort. Instead I smelled like processed baked beans and Jane treated me like wood.
Today I bought IPAR (Inter Parfums) at 28.11. I will sell it in 4 to 6 weeks at 32.46. Here’s why I like IPAR:
This company (formerly Jean Philippe Fragrances) makes domestic and international brand name and licensed fragrances, cosmetics and personal care products. Can you smell the chemistry? Through innovation and commitment to creating quality products at reasonable prices, Inter Parfums seeks to be a leading provider of fragrances, cosmetics and health and beauty aids.
IPAR is up over 400% over the last 52 weeks. It’s P/E of 45 makes it a relatively risky $$$MR. MARKET$$$ but…if you want to run with the big dogs, you have to get off the porch.
IPAR is not a US company. This is good because International sales are key for Inter Parfums. More than half of the company's revenue comes from global markets in Europe, Asia and the Middle East. All the pretty boy stuff I use is usually in my closet for years. I think people in Europe are like the “Real Men of genius”… Mr. Way-Too-Much-Cologne-Wearer.
Inter Parfums' launch of the latest Burberry fragrance, called Burberry Brit, has helped drive revenues significantly. Bouyed by current market conditions, Inter Parfums recently raised its financial guidance with sales next year seen reaching $217 million. $$$MR. MARKET$$$ believes that Mr. Way-Too-Much-Cologne-Wearer will propel sales to something closer to $233 million in 2004.
Analysts polled by First Call expect the company's 2004 profit to move up to $0.78/share but $$$MR. MARKET$$$ believes that the enhanced sales will translate to $0.84/share. Is IPAR overvalued? Of course it is. But I don’t care…if it can sustain this PE for a few more months, I’ll easily hit my sell target. This is momentum investing at its finest…and certainly not for the fainthearted. In the meantime, IPAR churns out a respectable ROE of 13%.
Consumption of luxury items should strengthen if the U.S. economy grows according to forecasts. Even if it doesn’t, the company is well positioned to weather cyclical markets because of its geographic diversity. The good news is that Inter Parfums doesn't only target upscale shoppers. About a third of its sales come from deep-discount retailers such as Family Dollar Stores Inc., Dollar Tree and Dollar General Corp. You don’t need a lot of money to want to get laid. The annual global perfume industry is about $40 billion. That’s a lot of colored water being splashed around.
IPAR’s market share is around 4 to 5%. This means that there is tremendous room for growth in this fragmented industry, for those who execute well. Inter Parfums uses contractors to make its products and keep costs in check. That lets the company focus on bottle design, packaging and coming up with the right scents. This way they don’t have all of their cash tied up in factories and fixed capital. They do have a lot of cash ($40 million) and have no long term debt. They can use it to make leveraged acquisitions of earnings that they can throw at their extended P/E. Or…if one of the behemoths wants to make a move, IPAR would be very very easy to swallow in an acquisition.
IBD gives IPAR an Overall Rating of 99+ and recently featured it as the #1 company in its IBD 100. Yes, $$$MR. MARKET$$$ is getting in late but all I want to squeeze out of this bad boy is my 15%. EPS has been growing by 26% over the last 3 years while sales have kept pace at a rate of 17%. It’s predicatability is great. It's a simple, low-cost, high profitability business that's easy to track. Inter Parfums' product pipeline and launch schedule are strong which will continue to support its revenue growth. Their focus for 2004 will be the continued rollout of the Burberry Brit line in Asia, South America and the Middle East. Other planned new fragrance launches include S.T. Dupont, Paul Smith and Christian Lacroix. The company was also in discussions to acquire or license additional brands in the areas of perfumes and personal care products.
The company's prestige fragrances have an average life expectancy of five to 10 years, with retail prices from $30 to $80. (Eighty bucks!!?? Holy Moley!) Now you know why margins are around 50%. It goes to show you…sometimes you can’t price something high enough. Some people WANT to pay more! IPAR’s portfolio is made up of seven principal brands, each with several product lines. Burberry products account for about 40% of sales.
Here is what the real man of genius had to say. Jean Madar, Chairman and CEO of Inter Parfums, stated, "Year 2004 will be marked by the continued rollout of the Burberry Brit women's line in Asia, South America and the MiddleEast, and the proposed launch in the fall of the Burberry Brit for men line in select markets. We likewise have high expectations for the new projects unfolding in 2004 under our S.T. Dupont, Paul Smith and Christian Lacroix brands. In addition, we have made strategic hires for our Diane von Furstenberg Beauty line, with the goal of growing sales domestically and expanding distribution beyond North America. Finally, the proposed acquisition of a majority stake in Nickel, which specializes in skincare products and spa services for men, represents a major strategic growth opportunity. This acquisition should close in the 2004 first quarter” " You have to love those spa services for men. There’s nothing better than sitting around in a bathrobe with your coconuts hanging out in the breeze, watching college hoops, eating pistachios and drinking freezing cold Coors Lights after an executive workout. Now you can smell good too.
Mr. Madar went on to say, “The better than expected growth in the second half of the year also reflects an excellent reception of Diane von Furstenberg Beauty, our first ever line of prestige cosmetics. U.S. distribution, which is planned for 35 doors, began in September at Henri Bendel in New York, and is presently in select Saks Fifth Avenue and Nordstrom stores.” No place better to shop when you’re in a bathrobe with your coconuts hanging out than at Saks. Just imagine after sprinkling on some Christian Lacroix Bazar Men.
It would be like sparkling notes of yuzu, grapefruit, water fruit and lavender provide an intensely energising and refreshing note. The middle note, blending ozone accord and woody notes of cedar and elemi, leaves a mysterious, ethereal and yet very tactile veil on the skin. The skin warms to patchouli leaves, sandalwood, oak moss and dry amber.
Can you just picture $$$MR. MARKET$$$ in this ethereal splendor, kicking back with his ankles crossed?
I didn’t think so either.
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