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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: rupers who wrote (56066)	5/17/2000 8:36:00 AM
From: rupers	Respond to of 122087

To anyone relying on my HBI post earlier If by chance you bought HBI based on my earlier post, I recommend you bail out of HBI. Quarterly earnings reported yesterday (small loss per share), but more importantly, HBI management appears committed to getting out of the do-it-yourself home business (essentially conceded a slow death in the DIY business). HBI will test 5-store (in NV & CA) pilot conversion to a home decor/outdoor rec retail focus, which entails liquidating store inventory at bargain sale prices, restocking with new inventory, and remodeling existing stores (substantial capital investment). If results appear promising, they'll convert the rest of their 88 stores to the same concept (within a year, gulp). There goes cash & assets and probably having to use its credit facility. Conference call by Zarkin (Pres & CEO) with investors was a disaster imo. Zarkin appeared callous, short-tempered, and played "hide the ball" on alternative plans. Announced they would not pursue any more stock/debenture buy back and try to save cash for the store conversions. Big act of desperation. If they were to liquidate the stores, property, & inventory, shareholders would get back much more than the $ 1.87/share HBI currently trades, but that ain't going to happen. You could tell the institutional shareholders were frustrated with Zarkin and the likely siphoning off of cash/assets with this "new" plan. Time to bail and not look back here