Thursday May 28, 9:57 pm Eastern Time
National Record singing - Business Week
NEW YORK, May 28 (Reuters) - National Record Mart Inc. is posting double-digit same-store sales growth and it still has the Internet up its sleeve, according to the June 8 issue of Business Week.
The company's stock was trading at 3-1/2 in January but was up to 10-3/4 on May 26, the magazine reported.
Robb Knie of Equity Advisory in Hackensack, N.J., told Business Week National Record's sales are rising faster than anyone else in the industry and it is likely to use the Internet to sell new and used compact discs.
''National Record is negotating with a major Internet company to co-brand a music site,'' Knie told Business Week.
Knie said used CD sales could add $0.20 per share to earnings.
A buyout also is possible, Knie said. A group that controls music store operator Wherehouse Entertainment holds a 3 percent stake in National Record. Knie said the stock is likely worth $22 to $24 in a buyout.
CEO William Teitelbaum, who owns 30 percent of the company, declined to comment on a potential buyout to the magazine.
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