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Non-Tech : Claire's Stores (CLE) NYSE

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To: Mr. who wrote (185)1/19/1997 5:34:00 PM
From: DanZ   of 619
 
Mr. Stockman,

How many times have you passed a Walmart and seen a full parking lot? The parking lots at Walmarts that I have passed are almost always full yet the stock has done nothing in the past two years. I'm sorry to disagree with you, but full parking lots don't always translate to Customers = sales = profit = earning per share = stock up. A business if much too complex to rate based on customers or even sales for that matter. The other side of the profit equation is expenses and you can't measure them by looking at the number of people in a store.

There are also many management decisions that affect the stock price like how much to spend on expansion, whether to use debt, is the company generating enough cash internally for operating and expansion needs. Then you've got the other side of things...the psychology of investors and they don't care about how many people are in the store. Retail is out of favor right now and there's no telling how long it will last.

Dan
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