Ames Department Stores (AMES) Message Board

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Microcap & Penny Stocks : Ames Department Stores (AMES)

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To: Market Tracker who wrote (637)	9/30/1997 7:27:00 AM
From: Arthur Tang	of 1911

AMES will compliment others with merchandises all their own. What you buy from Walmart you can not buy from AMES( not all items). Upscaling is niche marketing. Change of clientele takes some time to accomplish by word of mouth. The company's war cry is still bargain by the bagful, increasingly, the merchandises are selectively so. Not all items are given away, to improve margins. What is not sold in two weeks are discounted to turn the inventory, which makes it a bargain. Stores are dynamic, changing (turning inventory)every week to give same customers a fun place to go. Doing it same as supermarkets can achieve ultimately 3% profits(Safeway) from revenue. Now AMES is just over 1%. No growth is fine if every year they work towards 3% profit target. When AMES can achieve 3%, the new store expansion is ready to go. But at 3%, same revenue, the stock may move to $66/share. Any solid expansion can move them above $100/share. The stores due to footage is right now limited to $7 million per store( merchandise dollar volume limitations). We are hoping Wall street will recognize this program and take notice and follow the progress.

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