Heelys, Inc. (NASDAQ:HLYS)
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The Company is a designer, marketer and distributor of innovative, action sports-inspired products under the HEELYS brand targeted to the youth market.
The Company is a designer, marketer and distributor of innovative, action sports-inspired products under the HEELYS brand targeted to the youth market.
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My thesis: great sales history, which, if continued through the past Xmas season (most likely), and through this year, should bring the stock to a double of their IPO price (doubled sales quite possible).
Of course, Heelys shoes are a fad, and should be watched as such. I have 3 personal spies, aged 8-12, who are keeping tabs on their friends and whom I am keeping tabs on for signs of boredom, excitement. So far, enthusiasm has been holding, and attention is growing stronger, especially in Europe.
I'm going out on a limb, posting this a week before their broadcasted Q1 results, but I believe the numbers will be in line with their historical trends before the IPO, and that this will play out well for at least a year.
It's reassuring to see salaries that are 6 figures starting with a "1".Staffaroni did get $238K, and he got a big raise, to 400K for this year. Sr. VP in global sales got a commission of close to $1M! Options, bonuses and other compensation (health insurance, car allowance, etc) did not bring totals into the 7 figure range. Bonus levels, recently modified, seem to me quite reasonable. That gives me hope that management is level-headed, fair and realistic.They have a large stake in the success of the company, given their ownership levels. They must realize that their success is, so far, a one-product hit that may be a fad. It's good to see that they are compensating for that risk by being financially realistic and more long-term.