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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (18347)	7/31/1999 3:18:00 PM
From: Wes Stevens	Respond to of 56535

Boy AS also. A lot of growling going on! I agree with you Dave we need to be real careful and keep tight stops. I was out of the market 1/2 the day Friday. Then I got into EFNT and PDYN. Both looked so strong at the close that I keep them - hope it was not a mistake. My thinking on these two is that they will react more slowly to the market if it starts to tank as they are in a hot sector. Hope I am right :)

To: Canuck Dave who wrote (18347)	7/31/1999 3:50:00 PM
From: American Spirit	Respond to of 56535

BEBE is an example of a company I'm going to watch closely. Nicely priced already if it dips any further it is surely money in the bank. I will make exceptions and buy deals like this especially with strong summer sales and Xmas coming up. Once the Y2K fears play out there will be many bargains though, especially in the beaten down software firms. Those I wil play heavily going into 2000. PSFT a good example. High for the year 40, now at 13 and change, recovery underway, massive ad campaign a la Oracle. I also like drug stocks which have strong overseas sales and are somewhat interest rate insensitive. PFE, MRK, JNJ, LLY, etc. Down about 30% from highs some of them and their businesses looking very secure going forward. Another 5% dip in these and I'm in. See below for BEBE. BancBoston Robertson Stephens Reiterates Buy Rating on BEBE SAN FRANCISCO, July 30 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens managing director and senior specialty retailing analyst Janet Joseph Kloppenburg today reiterated her Buy rating on Bebe Stores, Inc. (Nasdaq: BEBE). The company, headquartered in San Francisco, Calif., is a well-established specialty-retail-brand targeting contemporary, fashion-forward women ages 18 to 35. "We are reiterating our Buy rating on Bebe, following the company's announcement of strong-fourth-quarter 1999 earnings," said Kloppenburg. "The company reported a 57 percent rise in net-earnings, with an earnings-per-share of $0.30, versus $0.20 in the same period last year, well ahead of our $0.27 expectation. "In our view, the upside in the quarter was driven by significantly better SG&A leverage of 290 basis points, leading to a strong operating-margin- increase of 150 basis points to 22 percent, versus 20.5 percent last year and well above our 20.3 percent estimate. "To reflect the upside in the quarter, we are raising our fiscal 2000 earnings-per-share estimate from $1.23 to $1.26, versus $1.11 for fiscal 1999," said Kloppenburg. "In addition, we are establishing a fiscal 2001 estimate of $1.55, representing 23 percent earnings-per-share growth from our fiscal 1999 estimate." "Separately, we believe current business trends continue to be strong, with July comp store sales tracking up in the mid-teen range, nicely ahead of our 10 percent estimate," said Kloppenburg. "With the stock currently trading at 19.8 times our calendar 2000 earnings-per-share estimate, we believe the recent sell-off has been unwarranted given Bebe's exceptional earnings-growth-momentum that has surpassed 40 percent for the past 11 quarters."