SHRP: The Sharper Image, Profitable making $ on Internet! Message Board

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Technology Stocks : SHRP: The Sharper Image, Profitable making $ on Internet!

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To: VeloSpeed who wrote (328)	7/9/1999 12:44:00 PM
From: Joe Mintz	Read Replies (1) of 353

This stock has just registered a very favorable technical pattern. After trading in a fairly tight range on light volume for several weeks, the issue has bounced around 40% from its temporary low near 8. The P/E ratio lies under 24, quite reasonable for a small-cap issue. Furthermore, the company strategy of focusing on the internet should prove rather beneficial for long-term earnings and sales growth. Even though same-store sales have been displaying only moderate gains, this should not be seen as unduly disturbing in light of the explosive growth in Web shipments as well as the difficult situation confronting store owners in malls (the unfortunate fact of the matter is that shopping malls in the US have not generated the revenue growth and investment returns which had been previously anticipated, for various reasons involving customer behavior and such). The positive trend appears to be gaining momentum. As the issue has moved up slowly on rather light volume, it indicates potential positioning by medium- to long-term participants. The internet site appears to rank very high on almost fronts - easy customer access, excellent graphics, etc. There remains the risk of poor mall-store sales and other branches in inopportune locations. These issues should perhaps be addressed sooner rather later by management in its quest to become one of the leading e-commerce destinations. SHRP will blossom as long as the bull market continues based on favourable US economic conditions, with their unique range of products targeting recreational and practical interests of relatively high-income consumers. Yet, the company could prove highly vulnerable to any economic downturn. As bond yields have begun to rise, raising borrowing costs and hence putting pressure on investment activity, it remains uncertain how the US consumer would react to a worsening business atmosphere, which could clearly weigh on major equity indices.

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