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Non-Tech : EINSTEIN/NOAH BAGEL (ENBX) -- Ignore unavailable to you. Want to Upgrade?

To: SeanS who wrote (98)	12/5/1997 1:38:00 PM
From: Meisterama	Respond to of 148

No, you are not alone. But it looks like it may be a while before investors rush back into this stock. I have only begun following this stock recently. There is much uncertainty surrounding the corporate repurchase of all individual franchises. In the short term, this seems certain to shift much of the losses previously sustained by individual franchisees squarely onto the ENBX books. The latest 10Q clearly says that this will result in a net loss in 1998. This is a bold move by ENBX, as it eliminates the steady stream of franchise fee and royalty income, replacing it with a direct tie to bottom-line store performance -- which has been abysmally poor. Apparently, Wall Street is not crazy about the prospects, or maybe they are just playing wait-and-see, hoping to jump back in if profitability is acheived again. I agree that something will have to be done to make the individual stores profitable: possibly increased advertising, possibly "streamlined operations" as management calls it. Certainly, analysts seem justified in questioning the wisdom of opening another 200 stores, when the existing ones are already losing a ton of money. Still, if management can take the model of the outlets that ARE profitable, and apply it nationwide, this could be a major turnaround story. This is obviously what they are pinning their hopes on. I'm sure many franchise owners have not been running their stores as cost-effectively as possible, so maybe the corporate bosses can do it better. I hope so--I love those bagels....

To: SeanS who wrote (98)	12/5/1997 11:27:00 PM
From: NCGB	Read Replies (1) \| Respond to of 148

SeanS, I have been reading the posts on this thread for some time but am relatively new to individual investing and have been trying to get a feel for the "game". Actually I keep hoping someone will post a good argument for this stock but wishing and hoping will not raise the price! I was convinced by a broker last spring that I really should use his advice to make "lots of money" and I did! -- for about one week -- and it was all downhill from there. I allowed him to talk me into buying ENBX at 15!! for a "quick turnaround" and it has been downhill all the way. I don't even like Noah's all that much but I notice the local shops are usually very busy. I can't decide if I should just bail out, lick my wounds and try to build up my investment base again or just keep my shares for the long haul. I'd appreciate getting any opinions on the potential for a real turnaround. Thanks