This Drugs store chain is going through a turnaround and is expected to quadruple eps in 1999.....
The store reformatting and remerchandising efforts continue to prove very successful. As of December 27, 1997, the Company has completed the reformatting and remerchandising of nineteen stores. Ten of these stores incorporate the ''Warehouse District'' food and drug format and for the thirteen weeks ended March 28, 1998, sales for these stores increased 17% over the comparable period of the prior year. Sales for the other nine remodeled stores which do not include the Warehouse District format increased 4% for the thirteen weeks ended March 28, 1998 over the comparable period of the prior year. The Company is in the process of reformatting an additional ten stores to the Warehouse District format all of which are expected to be completed by July 1, 1998. Dave Schwartz, the Company's President and COO commented ''By July 1, 1998 we expect to have remodeled, reformatted or constructed 33 of our 106 stores in the last two years. These stores will provide a foundation for positive comparable store sales and profit growth in fiscal year 1999.'' Phar-Mor's Warehouse District format expands the existing grocery offering and adds fresh, frozen and refrigerated food.
Trading as of 6/16/98 indicates a stock having undergone a correction of 20% pulling back to its 200 day moving average.... volume is increasing and a nice intersection of the 9 and 21 day moving averages is iminient.... this bullish configuration should attract traders.....
Good Luck,
Craig |
