Ames Department Stores (AMES) Message Board

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Microcap & Penny Stocks : Ames Department Stores (AMES)

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To: patrick w. carty who wrote (1532)	1/4/2000 12:44:00 AM
From: Arthur Tang	of 1911

Thank you for your info. AMES has been advertizing on TV building image recognition for some time and aggressively discounting an extra day on friday and/or saturday. The purpose is to build traffic for the former Hills and caldor stores. Traffic in general has been improved. But the discounting (30% on selected items)has hurt the revenue growth. The turnover improvement may show at the end of January in earnings. The change in stock distribution, 95% of AMES stock is now held by institutions and in strong hands. Market makers trying to pull back a last time to recover the 1.1 million shares of shorts may result in gyrations and short squeezes. Jefferies has one large customer. Knight is apparently fed by Lehman. Salomon Smith Barney was the leader with substantial shorts(500,000 or more). And Bank of America is the lender to AMES and have some position in AMES. The stock performance is no longer in the hands of small stockholders or daytraders (Knight's business). Recovery of shorts from insider sale and more new issues of AMES stock are all possible in the near future. The prospect of $5 billion revenue for AMES is the goal, but limited upscaling has to be racheted once or twice more. Such as softlines going to $24.95 and then $29.95 from $19.95. More large ticketed items above $100 in smaller stores. More loss leaders from current suppliers of AMES. More suppliers for AMES (target 3600-5000) in the year 2000 would be nice. All in all, it will be a great challenge, even though we have come a long way since 1996; when we first wrote here and have proactive stockholders work with the management.

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