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Non-Tech : Sunglass Hut RAYS- Will it ever breakout?

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To: Brian R. who wrote (913)12/21/1998 8:28:00 AM
From: Gary105  Read Replies (1) of 971
 
Brian, agree with you on the net aspect but disagree on SSS. If they can grow SSS by 3% the bottom line will look pretty rosy. The stock should be viewed as a seasonal play. No guarantees, but in the past it has generated solid double digit and in many cases triple digit returns between slow winter season (now) and peak summer season. They are also experimenting with selling watches in existing sunglass stores in winter to even out seasonalty. If this experiment succeeds it could do wonders for earnings. They have a web strategy - currently informational (you can find out locations of nearest rays stores, types of merchandise,etc), in the future (sometime in '99) it will be set up for e-commerce - not only for glasses but also watches.

Bottom line - seasonal play with the best season yet to come.. The key to appreciation in the near future will be sales.

Gary
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