Rankin Automotive (RAVE) Message Board

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Non-Tech : Rankin Automotive (RAVE)

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To: C. K. Humphries who wrote (5)	12/18/1997 10:33:00 AM
From: John Mattessich	Read Replies (1) of 20

C.K. : The Parts Source (ACEP) parallels RAVE very closely, as you pointed out. For their first nine months (fiscal), ACEP reported revenues rose 58% compared to same period '96. AND same store sales were up 18.5%. Great revenue growth AND great same store sales increase. The only downside is that EPS was down slightly ($.04 vs. .06). Let's recap : Great revenues, great same store sales increase, and positive EPS. It is difficult to understand how this one dropped down to sub-$2. IMO, RAVE and ACEP are being punished because of lower-than-expected EPS. However, isn't it fair that the EPS would decline as more and more new stores are acquired ? Both companies are still small enough so that when they acquire say 5 new stores in a quarter, that's a significant portion of their total store count. I hoping RAVE starts to show an improving EPS when the negative impact (net profit wise) of a new store acquisition is more than offset by the positive impact of same store sale growth. Does anyone have a handle on how many stores RAVE plans on adding and/or acquiring in the '98 ? John

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