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Belgie24

12/06/09 9:05 PM

#62366 RE: Joe Stocks #62364

Joe, these are the types of posts I enjoy the most ... the rest of the story on why you are here and how you got here.

I grew up very poor in terms of money also, but rich in other more important ways, family, faith, love of country. At the age of 15, I was spending summers picking strawberries and green beans (now done by immigrants both legal and illegal). I earned $.85 for filling 12 little boxes full of berries. This I did over and over filling a flat every 45 minutes or so for about 6 weeks. My senior year(1971) in high school, I went a little overboard and continued picking for about 3 hrs each day beyond when the other kids went home. I earned $300 that strawberry season, I'm sure a record for that time. Combined with the 300 pound green bean days, I earned $600 and purchased my first car, a 1961 Volkswagon bug, ancient at that time with an age of 10 yrs.

The lessons learned in those days endure today. My dad would have been 94 today, he taught me everything I know about hard work and family. Still extremely proud to be his son.
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cdseller

12/06/09 9:18 PM

#62367 RE: Joe Stocks #62364

Thanks for the "school of hard knocks" bio info, Joe. Somehow, I didn't see the sharp self made hardware store guy typically starting out as an accountant.

My industry(music) has many parallels to your hardware experience( excepting the very successful outcome) in that big players(BBY and CC and later WMT and TGT) were selling my main product at what appeared to be loss leader pricing. Yet the manufacturers were insisting that save for minor "volume discounts" everyone was priced on a level playing field.

The truth was, however, that while the invoices appeared to bear out relatively equal pricing, the big boys were being paid huge "advertising fees" and "product placement" charges that effectively lowered their wholesale costs by as much as 50%.

This game, initially, through huge volume, appeared to benefit the manufacturers/vendors, yet before long, the "tail began to wag the dog". The concessions to the big retail players eroded the profits on those sales to near nil while the true profits were being made on the regular players(including me).

Production though, was ramped up by the suppliers to such a level that while the production cost per unit was less, a very costly level of fixed infrastructure had been created with an inertia all its own. And they(the manufacturers) had killed their regular specialty retail outlets.

AND THE SAD REALITY for the manufacturers was that BBY, WMT etc didn't need them as much as they needed BBY, WMT etc. The big boy retailers could just switch to other "widgets" to sell.
Just ask any vendor who is thrilled to finally get the "Walmart contract", how they feel 4 years later.

Anyway, enough about the retail trenches.

I bot a little biopharm in early October for a day trade and after DD decided to hold it.

KERX

The positives are: lots of recent FDA approvals(cancer treatments), a swing from losses last year to profits this year , increasing revenues, and a happy looking chart.
Its JMHO but I think its worth a look.

If you like it, it may be double topping now, so you might want to wait til it KER-X.
(^_^)
CD
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Newly2b

12/07/09 10:37 AM

#62379 RE: Joe Stocks #62364

You're a true American success story, Joe, a self-made man. A pity most youngsters in this country today will not have the same opportunity to prosper as the economic climate has so drastically changed.

Newly
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See Shasta

12/07/09 10:56 AM

#62382 RE: Joe Stocks #62364

Joe, funny you should bring up HD and their slow pay ways. I happen to think about this on Friday. I was on the road and Clark Howard was on the radio. (Clark Howard is a personal finance and consumer advocate.) Anyway, he had a caller on who was one of AMZN's marketplace sellers (their competition to EBAY). She was describing a system of slow pay to the sellers by AMZN and how the sellers are kind of trapped into the system since they built their business there. The slow pay goes on for months. Seems short-sighted to me.

Yeah Joe, I was going to try to figure out the HD puzzle, but when I saw how complicated it was I had to drop it. Only so much time in a day. But you showed your impressive sleuthing ways back in that pursuit. How wonderful your hard work paid off in so many ways! Now I wish I tried a bit harder!