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Non-Tech : Tarrant Apparel Group -- They make the clothes

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To: Feraldo who wrote ()10/31/1996 11:04:00 PM
From: Gus Yeung   of 22
 
Finally. Finally someone is interested in this stock.

I was in since July. I may be totally wrong but I thought
their next year earnings is around 1.45. I am using
this number and let's assume a 20% growth (which is
lower than the previous couple quarters and next
quarter will very likely to be higher than 20%) and
assume its price can only reach 70% of the fair value:
0.7 * 20 * 1.45 => $20.3 by next summer, WOW!

This is of course no rocket science but I think it is
worth the risk.

Oops, I just checked with E-trade. IBES concensus is
1.75 by 12/97. Again using 1.75 * 20 * 0.7= $24.5.
It may be too good to be true. It has a lot of risk
but it also has a very good pay back. Did I mention
it is no debt, price to sales ratio of around 0.3-0.4
3 strong quarters and CEO is extremely bullish for
next quarter. If it can pass $12, it should attract a
lot of attentions (IBD does not track stock under $12
in their Volume table).

I am planning to ride this one till next summer. Good
luck!!!

gus
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