PHMD: A True Turnaround Story? Regaining Access To The Japan Market?

Mar. 26, 2015 1:10 PM ETPHMD
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Contributor Since 2012

"Risk comes from not knowing what you're doing" Warren Buffett Twitter: @unemon1 Scribd: http://www.scribd.com/Unemon Webpage: unemon.com

No!No! back in Japan - open the website to believe - http://my-no-no.ya-man.com/

The story

The Street Sweeper, when PHMD was trading in the mid 10's, did a great job at exposing the strategic business flaws inherent to this Company.

One of Street Sweeper's main point was the Fact that PHMD had to exit the Japan Market for its flagship Product: No!No! Hair.

Street Sweeper was right and eventually PHDM lost No! No! distribution in Japan. As the following Street Sweeper Article Confirms:

From the 10-K for the period ending December 31, 2013:

"On November 21, 2013 the Company's majority-owned subsidiary, Radiancy, Inc., terminated the exclusive distribution agreement between itself and Ya-Man Ltd., Radiancy's independent distributor for the no!no!® brand products in the Japanese market. Sales in Japan represented approximately 5% of the revenues related to the sale of the no!no! products for the year ended December 31, 2013; those sales were largely generated in the first six months of the year."

This implies that the No!No! was selling at a rate of $20m/year in Japan (single distributor) during the first half of 2013.

Annual Revenue of $224.7m * 5% * 6 months / 12 Months = $22.47m

As you can see, Ya Man has not been offering the No!No! during 2014 (www.ya-man.com/) :

2014-01-07 http://web.archive.org/web/20140107153236/http://www.ya-man.com/

2014-02-10 http://web.archive.org/web/20140210095735/http://www.ya-man.com/

2014-02-12 http://web.archive.org/web/20140212224538/http://www.ya-man.com/

2014-02-13 http://web.archive.org/web/20140213202354/http://www.ya-man.com/

2014-06-25 http://web.archive.org/web/20140625035946/http://ya-man.com/

2014-06-29 http://web.archive.org/web/20140629013837/http://www.ya-man.com/

2014-07-21 http://web.archive.org/web/20140721054535/http://www.ya-man.com/

2014-08-07 http://web.archive.org/web/20140807013729/http://www.ya-man.com/

2014-09-14 http://web.archive.org/web/20140914120409/http://www.ya-man.com/

But then, suddenly, if you look at the December 2014 Webpage Snapshot - the No!No! Hair resurfaces:

2014-12-18 http://web.archive.org/web/20141218162959/http://ya-man.com/

If you today you go on the http://www.ya-man.com/ website (JAPAN), you can actually order your No!No! Hair Device.

Here is the No!No! ya-man.com webpage: http://my-no-no.ya-man.com/

… and u can actually buy the Product (see the order page):

No!No! Hair is back in JAPAN at Ya Man.

Apparently you can also purchase the No!No! Hair device at Rakuten in Japan.

Rakuten Ichiba is the largest e-commerce site in Japan and among the world's largest by sales.

http://en.wikipedia.org/wiki/Rakuten

Disclosure: The author is long PHMD.

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