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Non-Tech : American Coin Mrch (AMCN)-High Growth Vehicle

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To: Gary S. LeBlanc who wrote (40)5/12/1998 12:49:00 PM
From: Steve Stuart   of 68
 
What bothers me most are the slight decrease in gross margins and the share dilution, neither of which is temporary. Cost of sales went up faster than revenues, partially as a result of depreciation from recent acquisitions. And a 22% increase in shares outstanding goes a long way towards chewing up a 44% increase in gross profits.

I still think the company has a nice little niche, and a solidly profitable business. I just think it will continue get more expensive for them to grow quickly.

-Steve Stuart
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