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Microcap & Penny Stocks : Ames Department Stores (AMES) -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (1668)	8/5/2000 9:55:10 AM
From: Arthur Tang	Read Replies (2) \| Respond to of 1911

Value play is analyzed correctly. But life is not that simple. The year to year comparison can fool anyone, because the number of stores has changed. The debt can be reduced by inventory adjustment in the stores, which is ongoing. However, the obsolete electronic keyboards have not been liquidated yet. The depreciation has increased, so cash flow is better. AMES did extremely well in 1997 when the inventory went to "limited upscaling" model, which is reduced quantities in each better quality item stocked, turn over was so fast that the debt kept on being reduced. Maybe Ettore can explain that to you. More items. means more customer attraction. The number of items offered at AMES and the number of vendors they have increased, spells success in the future. But, keep up the with hidden value analysis, we have not yet discounted AMES' good will in the communities they serve. In doubt, go back to the basics, for AMES it is still "limited upscaling" business model on top of "bargains by the bagful" theme.