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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Nelson958 who wrote (16137)	11/24/2001 10:19:25 AM
From: Mad2	Respond to of 18998

Didn't yo mama tell yo not to say nuttin abot nobody n'less it wad sumbten good? mad2 PS From 3rd point 13D November 20, 2001VIA FACSIMILE & U.S. MAILMr. James Scarborough President & C.E.O.Stage Stores, Inc.10201 Main StreetHouston, TX 77025-5229 Facsimile (713) 669-2709Dear Mr. Scarborough: Our firm recently acquired a stake of approximately 6.2% of the outstanding shares of Stage Stores, Inc. (the "Company") We purchased the majority of our position through the purchase of Specialty Retailer 8.50% Senior Notes due 2005 last summer while the Company was reorganizing under the protection of Chapter 11. In addition, we purchased shares in recent weeks subsequent to the Company's emergence from bankruptcy. Based on Third Point's base case EBITDA and E.P.S. estimates of $85.0 million and $2.12 per share, respectively, for the period ended January 31, 2002, we believe that even after the recent run-up to a price of approximately $14.00, the shares remain significantly undervalued. (Current prices represent a multiple of Enterprise Value/EBITDA of only 3.3X and an earnings multiple of 6.6X current fiscal year estimated results.) Our review of comparable companies leads us to a valuation in excess of $20.0 per share. With the cloud of bankruptcy lifted and the purge of prior management largely completed, there is significant potential for growth and financial improvement in the months and years ahead. We trust that you will continue to manage the company's operations and be attentive to corporate governance issues in a manner to maximize the value of Stage Stores for all its shareholders.Sincerely,/s/ Daniel S. LoebDaniel S. Loeb Managing Member

To: Nelson958 who wrote (16137)	11/24/2001 12:22:04 PM
From: Steve Lee	Respond to of 18998

That's quite an ASSumption you make. If you look at the history of the His picks, you will see it is an incorrect ASSumption.

To: Nelson958 who wrote (16137)	11/24/2001 3:09:38 PM
From: RockyBalboa	Respond to of 18998

So when you don't like the idea, don't pick up a single share! Everybody knows that the stock trades in the pinks, is thin and it had a runup so what? This thread is "event driven", and "value, investments" (the event, ie bankrupty resolved, and value, ie earnings potential has been laid out). Perhaps not the right place for a piker. Go play with your kids who never disclose that they have acquired their stock (which is too often worth as much as toilet paper) well in front of you. Stick with your beacon...