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To: Shack who wrote (77217)	3/8/2001 1:14:56 PM
From: Shack	Respond to of 436258

You know, its been said many times before but right now I don't think there is a better looking short than POS and I have just whacked it.

To: Shack who wrote (77217)	3/8/2001 3:07:58 PM
From: oldirtybastard	Read Replies (1) \| Respond to of 436258

sorry Shack, I screwed up, they still have a strong buy but lowered their estimates - they think it's undervalued at more than double the growth rate, which will be in the decline itself according to their revision, ufb...no link, it's from a pay service, I can PM you the full report if you want it: INVESTMENT CONCLUSION * Costco Wholesale reported 2Q01 EPS of $0.38, which was slightly below last year and in-line with Lehman and consensus estimates. For the quarter, Costco posted net income of $176.6 million. The companys comparable-store sales increased 2% while total revenues increased 7.4%, to $8.3 billion. Membership revenue grew 18.6%, to $146.3 million. SUMMARY * Following management guidance and our conservative outlook for the retail sales environment, we are revising our full year 01 and 02 EPS estimates to $1.37 and $1.62 from $1.40 and $1.65, respectively. Accordingly, we are revising our 3Q01 and 4Q01 quarter EPS est. to $0.27 and $0.44 from $0.28 and $0.46. respectively. * Costcos expansion potential, our continued confidence in management and the companys long-term earnings growth rate of 13%-15% lead us to believe that the shares of Costco are undervalued. With the shares currently trading at 29.1x our revised 01 EPS estimate of $1.37, we rate the shares a 1 Strong Buy.