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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Pancho Villa who wrote (8883)12/25/1997 8:50:00 PM
From: Pancho Villa  Read Replies (1) of 9285
 
To All more on Party City (pcty):

Just read the 1996 10k. Nice and cute typical retail chain business plan but no discussion on how profitability will be achieved. There is talk of a 10% profit contribution per store but no details on whether this is gross or net or whether it is or has been achieved in just some of their best stores or can be achieved in all. IMO they made more under the franchise system but the franchises were not happy so they sold. Co. probably believed (believes) they can improve profitability of the stores but IMO this remains to be proven and probably difficult to achieve. I smell short in 98.

Bill Wexller, CalculatedRisk, Roger, Scope, CatLady, M. Carter, and etc. etc. etc. can we have your input on this puppy when you have a chance?

Pancho
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