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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Richard Habib who wrote (87455)	12/5/2000 4:54:42 PM
From: PCSS	Respond to of 97611

from a MAJOR firm's PM Research Report just released cocerning Radio Shack: RadioShack Corp. [RSH] $50.63 RSH: Nov S-S Sales up 12%, In Line with Preannc; Still Expect Strong Dec; MO EPS (FY Dec): 2000E US$1.88, 2001E US$2.17 - Market Outperformer * Continue to rate RSH a Market Outperformer based on n-t visibility and strong positioning for emerging digital product cycle. Company reported 15% increase in sales, 12% same-store, on top of 17% last year, for November. Results in line with preannouncement, driven by above-plan sales during the extended T-giving weekend. We expect strong sales to continue into Dec. given strong merchandising catalysts vs. severe shortages in key categories last year and maintain confidence in our recently raised estimates. We remain guarded beyond Christmas, however, due to lack of additional catalysts beyond that point, including our wariness over the near-term prospects for broadband. * November sales growth tracked at a consistent pace through the month, with a significant boost provided by strong sales during the Thanksgiving weekend. Same-store sales on the Friday after Thanksgiving, the busiest day of the year, tracked up double-digits with higher year-over-year margins due to substantial attachment rates of parts, batteries and accessories. Strength in the month was driven by wireless and audio/video, particularly DIRECTV and RCA TVs, DVD players and home- theater-in-a-box. The launch of Verizon at the beginning of the month provided a boost to the wireless category, though Sprint PCS actually tracked stronger than cellular, driven by an aggressive $35 1500 minute rate plan. Seasonal and toy items in the Personal Electronics category exceeded expectations during November. The PC category tracked down in the low-single digits, though laptops, handhelds and Internet devices tracked up. PC sales trended positively throughout most of the month, including Thanksgiving weekend, but waned during the last week through Thursday. Note that PCs comprise only approximately 10% of RadioShack's overall sales Michael