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Non-Tech : Gymboree "GYMB"

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To: PeterR1700 who wrote (62)11/13/1997 9:44:00 PM
From: JAG  Read Replies (1) of 189
 
Wild ride today. Sold at 24 5/8 and then repurchased at 23. Can you believe that the stock fell below opening levels after it was upgraded. I held this stock many times in the past before. Believe me, when it starts moving watch out. Near future looks good. Strong economy with retail sector showing strength. No exposure to Asia. However, product costs may benefit from lower COGS due to Asia effect. Trading at only 16x this years earings! Indcredible for a stock with a 20% year top line growth. Company's overhead increased more than normal as it has geared up for European stores and new warehouse space. This overhead burden should now be in place. I belive the company will have strong emphasis on controlling costs going forward. This will allow more revenue from the 20% growth to fall to the bottom line. And finally, brand image. I have carefully inspected the quality of Gymboree clothing over the past 2 years. By far it is the best. Better than the quality of Abercrombie. Just call a few 2nd hand stores and ask their opinion of Gymboree quality and designs.
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