|
|
|
Toups Tech.(TOUP)
Multi-Media (MMIC)
Antennas America(ANTM)
Destiny Media(DSNY)
What's for Free(WFFT)
A Few Rules
Copyright © 1997-1999
Russ Klein
|
|---|
STOCK OF THE MONTH
SEPTEMBER 1999
JAGGED EDGE MOUNTAIN GEAR, INC. (JEMG)OTC:BB
Shares Outstanding - Approx. 11,475,000
Public Float - Approx. 3,475,000
Recent Price $0.42
JAGGED EDGE MOUNTAIN GEAR based in Telluride, CO, began with the dream of Margaret Quenemoen. Armed with an old sewing machine, and a vending permit, Margaret began selling her now-famous headbands that she hung from climbing gear rigged to a brick wall on Main Street. Margaret also visited Coffee Shops in her area and displayed her headbands. Margaret's headbands were so popular she added vests and other pieces, all made on the sewing machine she bought at a garage sale.
Margaret who is an experienced skier and ice climber, had a goal to expand her business to include technical outerwear at affordable prices. In 1993, her twin sister, Paula joined the company and the business expanded. Today the company employs approximately 30 people.
From that meager beginning in 1990, Jagged Edge grew in a giant leap by 1996 when it grossed $852,000 in sales. In 1997, the company projected that it would reach $1,000,920 in revenues and actually topped that mark by reaching $1,300,000. Jagged Edge projected $1,650,000 for fiscal 1998 ending July 31,'99, and they are now doing an audit and feel that they will reach approximately $2.1 million for the year. That is a 64% increase in revenues from fiscal 1997 to fiscal 1998.
In a personal telephone conversation with Margaret Quenemoen, I learned that she feels revenues could double in the period from fiscal 1998 to fiscal 1999.
More and more Americans are spending their leisure time outdoors in varying activities such as camping, fishing, canoeing? kayaking, skiing, snowboarding, mountain climbing and backpacking. A survey taken by the Forest Service on Recreation and the Environment in 1996, showed that approximately 189 million people from age 16 and older took part in some outdoor activity. The industry has grown quite lucrative and accounts for $40 billion of the nation's economy and employs nearly 768,000 full-time personnel. The increase in participation has pushed sales of apparel and other related gear and accessories dramatically upward and this trend seems to be continuing in the foreseeable future. There are thousands of people who visit the winter resorts who don't even put on a pair of skis or who want to do any mountain climbing. They do< however, want to look the part and they buy the Jagged Edge Mountain outerwear so they fit in with the crowd.
JAGGED EDGE, according to Margaret Quenemoen, plans to grow and it is taking steps to do just that. In order to cope with the rapid growth, the company hired an Operations Director and a Corpiorate Controller to strengthen its internal infrastructute. Allison Baumhefner is the new Operations Director who will assist and advise on macro and micro strategies derived from data analysis. Ms. Baumhefner comes to Jagged Edge from West Marine, where she was a Marketing Analyst. Kelvin Verity, a former Business Banking Manager at Telluride's Mountain Bank, is Jagged Edge's new Corporate Controller. He will handle all of Jagged Edge's financials and is currently preparing for a July 31 year-end audit. Other recent steps in the company's growth plan include the development of a new marketing campaign and the hiring of Jordan Campbell, a former manager at The North Face, as the new Marketing Director. The North Face is one of less than a dozen major firms in the mountain-wear industry.
JAGGED EDGE presently has five company-owned retail stores, a thriving whole-sale division with over 150 accounts worldwide, and expanding independent national sales force, a national catalog mail order division and a commercial Internet site (www.jagged-edge.com). Jagged Edge plans to become a fully reporting company when the above mentioned audit is completed and when they file a form 10SB with the SEC.
As you all know, I believe in companies with a strong management team at the top of the ladder. Jagged Edge has that team:
Margaret Quenemoen: President and CEO, is a graduate of the University of Colorado with a BA in economics. She orchestrates all aspects of Jagged Edge, including supervising the company's three divisions: wholesale, retail and mail order. She is active in planning, concepts, development and finances. Margaret was a finalist in the "1998 Entrepreneur of the Year Award" nominated by Merrill Lynch in Denver and was also a finalist in the "Small Business Person of the Year" in 1997. Margaret is a skilled alpine and telemark skier, as well as a rock and ice climber. Since the hiring of the recent people mentioned above, margaret may have relinquished some of the aspects of the business, however, you can be sure she is in touch with all of the people on a day to day basis.
Paula Quenemoen: Executive Vice President, is a mountaineer who graduated from the University of Utah with a BA in Asian studies and political science, a minor in Chinese and a certificate in international relations. Her role in the company encompasses the catalog's production and design, marketing wholesale development, tradeshow management and international business components.
In a recent conversation with Margaret Quenemoen, I was left with the feeling that there is great enthusiasm at Jagged Edge. Ms. Quenemoen has great hope that a goal of $4,000,000 in revenues will be reached in fiscal 1999 which will greatly exceed the projection of $2,750,000 for that year. There was a projection of $5,500,000 for the fiscal year 2000 but it now looks like that figure will be left in the dust and it would not surprise me if the near 100% increase from 1998 to 1999 will be duplicated and fiscal 2000 will come to an end with the revenue figure approaching $9,000,000 to $10,000,000. These forward looking projections are not set in concrete but Ms. Quenemoen believes they are reachable goals.
Remember "From Acorns - Large Oaks Grow". If you're long Term Oriented, take a look at JEMG.
Editor was not compensated in any form for this review, however, for full disclosure purposes this editor has a position of 31000 shares which were paid for from my own personal funds.
rklein@bellsouth.net
Russ Reports Nov. 1999