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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Brotnov who wrote (16536)	7/29/2003 10:30:00 AM
From: Carl Worth	Respond to of 16631

I wouldn't buy back in yet. I would wait to get back in on the next big opportunity, which RCII seems to have at least once a year. Last time the stock dropped to around 40, which put the P/E below 10. That drop was exacerbated by the weak overall market, but I would think there is a good chance it drops to between 55 and 60 sometime in the next three months, at which point I would look at starting to accumulate again. You could probably play the day to day volatility for a few points, but at these levels I think the downside risk is too great to start buying yet. They used to beat by a few pennies and guide up each quarter, this time they reported in line and basically guided flat, so I think that will put more pressure on the stock than it has felt after earnings reports in the past. Carl