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Non-Tech : Eagle Hardware (EAGL) The Next Home Depo -- Ignore unavailable to you. Want to Upgrade?

To: Bert Kuo who wrote (211)	11/3/1997 5:03:00 PM
From: Sunny Jim	Respond to of 389

Bert I watch the thread and the stock, but there's not much to say about it's performance except that it stinks. The TA shows that it could be ready for a real nice bounce any day now, but each day just brings more lethargy. I think the company is doing just fine and will probably beat their next quarter's estimate by a cent or two, but the street has gone to HD and LOW for safety. Compare the three stocks since June and HD and LOW have gone up nicely while EAGL has done just the opposite. I am still hopeful but EAGL needs a rally to keep the interest up. Jim,

To: Bert Kuo who wrote (211)	11/4/1997 12:05:00 AM
From: Bert Kuo	Respond to of 389

When are earnings coming out? Any idea? thanks.

To: Bert Kuo who wrote (211)	11/4/1997 12:13:00 AM
From: mozek	Read Replies (2) \| Respond to of 389

I'm actually considering this a buying opportunity, but that's just my opinion. I recently purchased some at 17, and considered purchasing more at 16-7/8 today. EAGL hasn't had disappointing earnings since I've been following the stock, and its PE just gets lower and lower while it consistently beats expectations with good forward looking statements. I'm also hoping that the Asian currency crisis will help earnings, but I'm not sure of the actual percentage of goods purchased from Asia. I generally invest in tech stocks, but Eagle's price is looking to good to pass up. Good luck in your research. Thanks, Mike

To: Bert Kuo who wrote (211)	11/6/1997 1:43:00 AM
From: Rainier	Read Replies (3) \| Respond to of 389

Bert: Re: what this stock is really worth: Doing a quick comparison with Home Depot, the market leader and Eagle's main competition here in Seattle, I would say about $28/share. Home Depot / Eagle Market Cap $38.4B / $563.6M # of Stores 541 / 27 Store Value (Market Cap/#Stores) $71M / $20.87M Sales/Store $40.85M / $32.97M Net Income/Store $2.01M / $1.05M Sorry about the poor formatting -- apparently, what I see isn't what you get! :-) Assuming each Eagle store is only half as valuable as a HD store (I discount this because of the difference in earnings generated by each store), the Eagle outlets should be worth 27 x $35M = $945M. Eagle has about $128M in debt, so its net worth should be $945M-$128M=$817M. Divide this by the outstanding shares (28.9M), and you get a share value of $28. VectorVest (another data point, although I don't know the details of how they calculate value) says Eagle is worth $29.50 a share, so I don't think my $28 (from a numbers crunching perspective) is too far off base. Given that Eagle is trading around $19 and HD is around $55, there are some other interesting comparisons. Although earnings for both are growing at around 23% (from this year to next year -- unfortunately, I haven't been able to find any out-year estimates), Eagle has a PE of about 19, while HD's is about 37 -- twice as much! Additionally, Eagle has a higher book value and greater cash and sales per share. From a shopper's perspective, I think Eagle is by far the superior store. The selection is better, the prices are as good or better (guaranteed), the personnel are better trained, and the stores themselves are more customer friendly -- no forklifts on the floor during store hours, not a "warehouse" environment. The company is a winner, IMO, and it's just a matter of time before the stock price reflects underlying value. Of course, the answer I don't have is when that will be! Lisa