A very cogent write-up, which I agree with. I agree about retail sales of beer, but an interesting twist would be in-store sales of their microbrewed beer, bottled, for later consumption. Then CHGO could keep their margins and cut out the middleman.
I am looking forward to the earnings release Friday. Based upon the last few news releases about boosted same store sales, etc., I am very confident. I recently bought more shares, and today I bought a small position with the warrants, symbol CHGOW.
I expect to see CHGO hit $4 by the end of 1998, $5-1/2 by the end of 1999, and $7 by the end of 2000. The earnings estimate I have seen for FY98 is for $0.22, which yields a current P/E of less than 10.
The warrants have an exercise price of $5.50 and expire 4/8/2002. We should have no problem exceeding $5.50 before then, so I think the warrants are an excellent investment.
Current prices for the warrants are bid - $0-5/32, ask $0-3/16 (one warrant for 100 shares would cost $18.75 at the ask). Either way, this company is a great investment. |
