Bombay (BBA): Time for a run up? Message Board

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Non-Tech : Bombay (BBA): Time for a run up?

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To: Arnie Doolittle who wrote (18)	9/2/1997 8:19:00 AM
From: Stephen Steir	of 202

OK Arnie, I'll bite. I've looked at BBA with regard to consumer confidence and housing starts and I don't share your excitment on this one. BBA is in a tough market that's driven by consumer confidence. As confidence slides so will purchases by consumers in this market. To make a bet in home furnishings I'd have to believe that consumers would remain confident. Most confidence these days is based on an individuals success in the stock market since salary increases are not in line with confidence indexes. Money from investment gains is what's keeping everyone happy. But those gains will become more realistic as the Fed raises rates and fund managers take a more conservative stand. Speaking of the Federal Reserve, mortagage rates should cool home purchases over the next year which will also have a negative effect on BBA's revenues, new product line or not. Perhaps BBA's fundos make it a more attractive buy than other stocks in this industry but I don't believe that the industry as a whole will perform well in the next 12 months. An S&P index fund would be a better bet for long money. Steve

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