Genesco (GCO) Message Board

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Non-Tech : Genesco (GCO)

GCO 30.06

+3.0%

Jan 9 9:30 AM EST

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To: Bret P who wrote (43)	5/8/1999 10:52:00 AM
From: David Alan Cook	of 66

Bret, I have raised my target on GCO again . . this time to $15. Believe it can trade much higher than $15 over the next 12 months. My reasons for buying: 1) Company insiders and the Company have been buying shares. * Share repurchase program during the 3rd qtr ended 31 Oct, the Company authorized the purchase from time to time of up to 2.6 million shares of the Company stock. As of 31 Oct, GCO has repurchased 1.5 million shares. * Insiders own about 4%, Entrust Capital owns about 10% and Eagle Asset Mgt owns about 10%. Davis and Harris are two insiders that have a good history and record of buying at the lows. * Little exercised some options in Mar 2) Company sells at a steep discount to the Industry Average Price Ratios. . . - Sells at only 30% of the Industry Avg Price to Earnings Ratio - Sells at only 25% of the average Industry Price to Sales Ratio - Sells at only 30% of the industry avg Price to Book - Sells at only 30% of the industry avg Price to Cash Flow 3) Mgt Long Term Business Decision ( Selling unprofitable boot division, reducing interest expense ) will result in a more profitable business going forward. " Genesco Profit Exceeds Forecast, Stock Jumps " Last qtr announcement. Operating Income was $16 million or 58 cents per share, up from a profit of $10.9 million, or 40 cents a year earlier. " These are strong results at any time and especially in a year that presented the kind of extraordinary challenges for the footwear industry that this one did. It is encouraging to enter a new fiscal year with the kind of momentum we began to feel toward the end of the fourth qtr. " Looking forward to the next report DC

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