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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Thomas who wrote (12988)	6/29/2000 6:23:00 PM
From: Dan Duchardt	Respond to of 14162

Ryan, Thanks for the input. I see a lot of AMES stores closing up shop in the past 10 years, and the ones that don't seem to have gotten run down. 10 years may be too long a time frame for Ames. I believe they were just coming out of bankruptcy when the stock rose from the ashes a few years back. I don't mean to be hyping the stock, but I see more than the P/E as positive. Market value only 40% of book value, a pretty good track record over the last few years during the recovery. It may never see $40/share again, but the call premiums are not bad. I certainly don't intend to bet the farm, but I like the idea of accumulating some while it's at these levels. Perhaps because I'm so close to the home territory for Ames, but I'm in and out of many stores that are well maintained and orderly. You can always find things where they are supposed to be. Their prices are often better than many of the competitors (Bradlees, KM). Somehow they have managed to not try to be or beat WMT and make money anyway. I know first hand that the "weather" reason for sales being off has validity. Of course, they have to turn those numbers around when that reason goes away. Dan