Verimark: Value stock offers good opportunity
Infomercial-style advertising allows it to create strong brand recognition for the products. It’s a system that has worked for a long time
Verimark Holdings Limited is a seller and distributor of direct response TV products. It has been around for 41 years and has been doing the same basic thing for that entire period. The model is simple: find and import quality products, then create infomercials and advertise on TV. Customers call in and make purchases, or buy on its website. But wait, there’s more. It has about 88 Verimark Direct stores and 1,120 store-within-a-store outlets throughout Southern and East Africa. It sources high-quality products that it can market to a wide demographic, with an exclusive import and distribution agreement with the manufacturer. Infomercial-style advertising allows it to create strong brand recognition for the products. It’s a system that has worked for a long time. Technically it is a small-cap stock, trading at about R1.10 a share. So, there is a higher level of risk than you would find in a blue-chip stock. But that extra risk is rewarded with a solid set of fundamentals. With just o...
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