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Microcap & Penny Stocks : Ames Department Stores (AMES)

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To: andrew feldman who wrote (762)11/7/1997 7:33:00 AM
From: Arthur Tang  Read Replies (1) of 1911
 
P/E ratio for retail industry is 24.5. Revenue times 3% divided by number of shares outstanding is the earnings per share. AMES management did not understand that warrants are not shares, has no voting rights or dividends. It is just a contract or rights to convert money paid in for each share of stock to be issued. Very seldomly warrants are converted becuase you can buy and sell independantly. Some times warrants are much better value than stocks, the leverage is higher.
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