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Gold/Mining/Energy : Chapters Bookstore

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To: nokomis who wrote (7)10/29/1998 1:14:00 PM
From: Yonni  Read Replies (1) of 37
 
Chapters reported a loss of 16 cents per share for Q2/99. This was versus analyst consensus of a loss of 22 cents. Revenues increased 29.5% to 121 million vs. Q2/98. Superstore sales increased nearly 91% vs Q2/98 to 62.4 million. Company incurred one time cost of setting up internet site of 750 thousand, bringing non-recurring costs to 1.5 million to date.

As indicated at the AGM, Superstore sales will now exceed 50% of total revenue. The interesting growth is in the other revenue category (calendar sales, Chapters memberships, Hear music) which increased from 919 million in Q2/98 to around 6.4 million in Q2/99. I have increase my 99 EPS from 1.00 to 1.10 and have a new 2000 eps of $1.50.
Using a 20 times multiple versus 2000 earnings (year ending March 2000), I believe this stock should be closer to $30.
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