Costco, slow but sure? Message Board

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Non-Tech : Costco, slow but sure?

COST 935.47

+1.3%

10:05 AM EST

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To: Mel Fox who wrote (703)	9/4/1998 2:33:00 PM
From: Mel Fox	Read Replies (1) of 1147

All: There are steam-rollers of life and there are Mysteries! Price now down over a buck????? Below is copied from the CBS MarketWatch: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Costco cashes in on upgrade Prudential raises to "accumulate" By Aimee Male, CBS MarketWatch Last Update: 12:25 PM ET Sep 4,1998 NewsWatch ISSAQUAH, Wash. (CBS.MW) -- Investors lined up to buy Costco Friday after Prudential raised its rating on the wholesaler to "accumulate" from "hold." Prudential analyst Amy Ryan said in a report that Costco's sales should increase by 10 percent to about $26.4 billion for the year as the company opens new stores both in the U.S. and abroad. Ryan said comparable store sales should jump 8 percent for the fiscal year. The analyst's 12-month price target for the company is $60 per share. The Issaquah, Washington-based wholesale outlet chain reported Thursday that same-warehouse sales increased 6 percent in August. Total sales rose 10 percent to $1.88 billion from $1.71 billion a year-ago. Costco (COST) shares rang up 1 1/16 to 51 in recent trading. The Standard & Poor's Retail index fell 0.6 percent. Prudential said Costco's share price hit a 52-week high of 65 in July, yet has shed some 25 percent since then. Ryan maintains the undervalued shares are a good catch for investors since the company's fundamentals are strong. (my emphasis) Prudential expects long-term earnings growth for the company at 15 percent per year. The investment banker also refuted rumors that the Securities and Exchange Commission had questioned the way Costco accounts for its membership fee income. Costco said Thursday that it has not been contacted by the SEC, and affirmed that its accounting principals are in accordance with SEC guidelines. (See related news release.) Aimee Male is a reporter for CBS MarketWatch.

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