Volcom Research Report 3

The company believes that its multi faceted marketing

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Unformatted text preview: its brand image with the lifestyles and aspirations of its consumers. Volcom branded products are sold throughout the U.S. and in over 40 countries internationally. From its headquarters in Orange County, CA, the company serves the U.S., Canada, Central America, Japan, Korea and Puerto Rico directly through in-house sales personnel or independent sales representatives. In other areas of the world, Volcom licenses its brand to entities that it believes have valuable local market insight and strong relationships with retailers in their respective territories. The company receives a royalty on the sales of Volcom branded products sold by our licensees. One retail customers, Pacific Sunwear, accounted for approximately 29% of product revenues in 2005. International sales accounted for 18.2% of total product revenues in 2004. Volcom's goal is to increase its revenues and profitability by: building and reinforcing the authenticity, credibility and consumer awareness of its brand; enhancing the productivity of its current retailers; focusing on international distribution; and selectively introducing new products and product lines. VOLCOM INC 1740 Monrovia Ave Costa Mesa, CA 92627-4407 USA Phone: 949-646-2175 Fax: 949-646-5247 http://www.volcom.com Beta 1.83 Market Capitalization $483.1 Million 52-Week Range $11.10-$24.79 Price as of 6/24/2010 $19.82 STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of VLCM shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock’s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE 4.5 Growth out of 5 stars weak Measures the growth of both the company's income statement and cash flow. On this factor, VLCM has a growth score better than 80% of the stocks we rate. strong 3.0 Total Return out of 5 stars weak Measures the historical price movement of the stock. The stock performance of this company has beaten 50% of the companies we cover. strong 4.5 Efficiency out of 5 stars weak Measures the strength and historic growt...
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