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Non-Tech : Sunglass Hut RAYS- Will it ever breakout? -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (722)	12/7/1997 12:47:00 PM
From: marc chatman	Respond to of 971

Gary, do you mean seasonal correction in company performance or stock price? I think the price follows the performance here. The company is not performing. Thank goodness the malls are crowded because IMO it saved the Hut from a disaster last month. The results last year were terrible, setting up the company for superior year over year comparisons. Apart from a brief period associated with the MIB promo, however, the year over year comparisons have been disappointing. So to answer the question, I think the season does not have much to do with the "relative" poor performance. I see several possibilities which could lead to a 50% increase in stock price. 1) a buyout (I NEVER anticipate a buyout, but maybe Hauslein is doing a SLOW fix in order to coordinate a sale of the company with next summer's high season -- I can't think of any other legitimate reason for his lackadaisical efforts). 2) hiring a promising CEO (I've already posted my view that Hauslein would have hired one a long time ago if he had any intention to do so). 3) fixing the company -- my goodness, what a novel approach (sarcasm intended). Just close the damn underperforming stores IMMEDIATELY, AND SLASH SG&A. In virtually any company, there is fat to trim; there is even more fat which can be trimmed when you are cutting the top line substantially. Even if nothing happens, and I have come to expect nothing from Hauslein, normal fluctuations in the market could carry this stock 50% hiiigher -- or lower. Just my opinion.