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Author: doomed Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 9  
Subject: Turnaround? Date: 10/11/1997 10:54 PM
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Nobody seems interested in this small-cap, but I own some, so should I continue to hold it? The CEO, Gordon Zacks, apparently the stepson of the deceased founder seems to have the hope of providing a 20% annual return (18% this year due to establishing the European market). Ibought this stock a while back, before I discovered the Motley Fool, based on its low PE and reasonable long term debt. Now, with the thought of a 20% return, I'll hold on especially since I figure the PEG at 0.42 based on Mr. Zacks' optimism. Another reason, as an engineer I'm impressed with their microcore(R) product, and I took a close look at my most comfortable ever bedroom slippers and they are R.G. Barry. Where is this one going?
P.S. Now you have a suggestion for a holiday gift!
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Author: tis Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2 of 9
Subject: Re: Turnaround? Date: 12/10/1997 5:59 PM
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FWIW, I WAS an engineer too, and have also liked this stock for some time (early 96). The stock has done nothing but round trip for the last couple years, yet I'm satisfied with the company's performance, and have been increasing this position for some time...

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Author: doomed Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3 of 9
Subject: Re: Turnaround? Date: 12/10/1997 9:13 PM
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Thanks, tis, for a reply to my message. It is nice to know someone else out here in cyberspace likes this stock, as I have become a little discouraged watching it drop 20% or so in the last couple of months. Perhaps I should look at this as a buying opportunity.

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Author: tis Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4 of 9
Subject: Re: Turnaround? Date: 12/14/1997 8:14 PM
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FWIW, RGB is my 3rd largest holding, both in my personal account, and in my client accounts.

At 11 1/2, the cap is 114. If they make their $1.00 a share estimate, they'll make 9.9m, with most of that money going to their BS. Using the end of the year BS for Jan 98, that adjusted cap will be about 104m. Simple stuff, but what would a 30 year treasury yielding 6% have to be worth to generate 10m in income -- 167m. Pretty large margin of safety, considering RGB should have a nice sales gain this year, should have nicely better gross margins, sells a replaceable product that most people purchase once a year, enjoys a dominant niche position in the slipper biz, was named Walmart's "Footwear Vendor of the Year" last year (a heck of an honor considering WMT's importance), and have good prospects for growth in Europe.

Yet, no one gives a rip about the stock apparently.

I don't care. As long as fundamentals improve and the price goes down, pretty soon this will be my #1 position. Eventually someone will look past the seasonal fluctuations with this company and see the $$$ 's they are producing.

My opinion, of course.

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Author: tis Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5 of 9
Subject: Re: Turnaround? Date: 12/14/1997 8:23 PM
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Again, FWIW, RGB's press agent sent me the CEO's recent interview profile in THE WALL STREET TRANSCRIPT. If you don't have a copy, ask the company to send you one. - the interview was excellent.
One last bit:
If RGB merely has the same (assume NO growth) net income, cash flow, and capital expenditures as last year for the next 3 years, they will generate about $30m in income.
Figure a 114m cap with 10m in excess cash above liabilities (assume inventory, plants, etc. are worth nothing), for a net 104m cap.
In 3 years, the thumbnail sketch gives you a 74m company generating 10m in income. In 5 years, 54m generating 10m in income.
All this if growth merely stays flat.
What could go wrong? People don't buy slippers.
I guess....

Again, merely an opinion.

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