Ames Department Stores (AMES) Message Board

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Microcap & Penny Stocks : Ames Department Stores (AMES)

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To: Art Baeckel who wrote (1853)	6/19/2001 10:36:14 AM
From: Arthur Tang	Read Replies (1) of 1911

Credit line from GE is $800 million, with the $100 million cash on hand requirement is effectively $700 million. Previous loan was $650 million. So, there isn't much they can do to close stores or open many new stores. They have to watch margins very closely at all the AMES stores. Unless Rolando spends too much money, and avoiding investment of any kind that has no immediate monetary rewards; they have enough to manage merchandising. Bankruptcy can be avoided. On your last report, Rolando knew they must avoid buying back bonds. Cash is king. Things will be tight until cash profit is build up by good merchandising. They did it back in 1996, when loans went down and profits went up, by fast turn over of inventory(use trade credit rather than loans to run the company). Their silent but experienced VP is the key in merchandising. Its not hard but they have to be on the ball.

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