Claire's Stores (CLE) NYSE Message Board

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Non-Tech : Claire's Stores (CLE) NYSE

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To: Gil Allen who wrote (563)	9/5/1998 10:46:00 AM
From: KLINVESTOR	Read Replies (1) of 619

Gil, I bought my original stake in 1994 and continued to add to that during the drop in early 1996 and early 1997 I have never lost any sleep over the company performance. The SSS (+8%) and total sales (+29% ) increase during August only ratified my strong belief in the long-term performance of the company. While the stock price has jumped around a lot during the entire time I have owned this stock the performance of the company is rock solid. I much prefer to focus on performance and the predictability of that performance has been excellent. When the stock was in the low $20s I kept saying I believed it would be going to the $30-40 range over the next 12-18 months and even with the recent slide I really have not changed that belief. A negative sales trend started last year about this time and sales were not particularily strong through May of this year but since then we have seen the reversing of that trend. Sales are increasing nicely now and the really great thing is earnings continued to rise pretty well even when the sales trend was basically flat. With this increasing sales trend I think we are looking at some very nice earnings increases over the next 6-12 months and estimates will be increasing. A PE multiple of 20 on this stock would be very reasonable and it is very possible that we would see the earnings estimates for next year increased to $1.75 if this improving trend continues. That would be a $35 price. A long way from where we are today but hardly overpriced either. That is not to say we couldn't see the price drop from here also. The market is volatile, unpredictable, and definitely not perfect. It is for all of those things though that we all enjoy trying to pick the next winner. Small stocks (not NASDAQ but RUSSELL 2000) are way down from their highs and the time maybe ripe for a big run in these stocks since the last 1-2 years has not been very good unlike the larger cap stocks, internet stocks, and other tulip bulbs type stocks. Good luck!

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