F.E. - 1st a disclaimer. I ve no position in AMES. Your question is really the answer for you. Precisely, AMES is no difference from any other store. Each sell the same pots, pans, and low priced watches etc. It is possible that it doesn't even have as much traffic as BRADV or S. However, since it has consistently beat expectations, generate positive cashflow etc., one can infer it has done so with better cost management. Hypothetically, it is rather meaningless to generate $1.3B revenue if the cost of this generation is $1.6B! Again, a disclaimer. I ve not done enough analysis on AMES or BRADV [the latter doesn't have any.] However, somewhat related to cost management, at least 2 factors are well hidden from the eyes of the customers that may seal the fate of the store. Inventory and debt. Maybe AMES was doing a good job in maintaining good inventory turnover and/or in servicing debt at a low cost. Of course, these are wild guesses with no analytical substantiation.
Anyway, while I like to speak my mind [if you look at my posts in MADGF thread, I even *attack* my own stock, since cheerleading without a reason is not my thing,] I sense I got at a raw nerve here. Therefore, I will be more careful and keep my big mouth shut <sg> unless I ve something to say here.
good luck
best, Bosco |
