To: Anthony@Pacific who wrote (63457 ) 11/25/2000 8:04:20 AM From: If only I'd held Read Replies (3) | Respond to I'm not sure I understand. They are making money. I agree the stuff they sell is niche product, but they ARE selling it...and they ARE making money with it. They are forecasted to make about 15.5 million this coming qrtr. If they do, that puts their (ttm) earnings at 2.61 per share...or 31,581.000 for the past 12 months. The P/E would then be roughly 6 (ttm). If they meet the forecasts, and the market gives them a P/E of say...10, even for a brief time, the price of the stock would then be 26.1 per share. That is a return of 10 dollars per share or 62.5%. Now, given the fact that they will see a slowing after the holiday season like all retailers, the stock will probably drop back to a lower level. That is why I am targeting between 25-50%. I am not interested in hitting the tops or the bottoms. I just want to increase my capital. And if I can net a return somewhere in between that 25-50% range in the coming 2-3 months, I will be very satisfied. It seems like a reasonable bet to me....but I have stops in place. I view it as a trading stock...like any other retailer. If you take say...16k and increase it by 25% 5 times in a year, you wind up with just under 49,000 before taxes. Take out the 28% in capital gains or roughly $9,300 and you end up with a return of roughly 150% for 5 trades. Gotta try right? I certainly feel better about this SHRP trade than the trade I made in ETYS.
