Undercoverwear (UCW)

[steve fleming]

haha!!...never heard of this company until this morning when i saw DAvid Tench picked it in the SMH share picking comp!

Well worth some 'research'!

Especially the 2006 Annual Report!!![][]

http://sa.iguana2.com/cache/26df4b9c...UCW-259613.pdf

[Lizard]

Second half was not so good for them from memory...?

[contrarianinvestor]

Last post on this company was in 2006. Anyone else following this company? The current price of 22c gives a market cap of $10.6 million. For a company expecting to earn at leat $2 million this year and hopefully around $4 million once the recession is over, the current price looks ridiculously cheap. Oh and they have zero debt. Am I missing something?

[contrarianinvestor]

It astounds me that UndercoverWear, which is a direct selling company, gets absolutely no interest from the share market after all evidence suggest that these type of companies are the ones who normally increase their sales during periods of economic slowdowns. Any thoughts?

Articles:
Recession's new best friend.
Reuters: Direct sales jobs surge in recession
Recession fears drive direct selling boom

[contrarianinvestor]

Well I'm chatting with myself in this thread. Probably because this company is 'boring'. I like that. UCW's half-year report is out. First-half sales were down compared to the previous period. Nevertheless the share price looks attractive to me. They never stopped paying healthy dividends, bought back 10% of company and increased their latest dividend to a very attractive 1.25c (8% fully franked). All promising signs for 2010. The company is creating a new UCW brand (See ucw.com.au) which my wife thinks has great potential. Any thoughts?

[percy]

Your wife is most probably right.some people like tim glasson have an eye for womans fashion and seem to always get it right while others come and go.UCW got it wrong and although turnover was not down a lot profit was,however should new range work profits will soar,espically with larger number of agents.Share buy back is positive as is the divie.It may have been a boring company but I think you could be in for an interesting time.I hope it works for you.I would see if any of your wifes friends have dealt with the company and would they have a party evening .That should tell you a lot about the company.I look forward to more posts on this small,but intersting company.