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Non-Tech : Bombay (BBA): Time for a run up?

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To: wallstreetbull who wrote (65)2/13/1998 7:22:00 AM
From: David R. Schaller   of 202
 
Sam, like you, I've been in and out of BBA several times. No stock has repeatably treated me better. It goes down to $4 I buy. It goes to $9 I sell. I think there may; however, be meat on the bone this time around.

BBA's biggest problems are summarized below;

BBA PIR
sales/sh ..................$ 9.20................$ 25.75
book value..................$ 4.35................$ 9.70/sh
shares......................38.0mil...............45.50m
sales......................$350mil...............$1,175mil
gross marg...................36%...................41.2%
# stores....................435.....................790
net profit marg............2.3%...................6.0%
earnings (98est)...........$.20/sh...............$1.45/sh

It is obvious how much more effectively PIR uses their assets. Any wonder PIR sells at 5-6 times BBA. Plenty of room for improvement.

I also noted that PIR's stock was down on the same days that BBA was up earlier in the week. Makes me think others were worried about earnings dilution.

Should be fun & hopefully rewarding, Dave
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