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Microcap & Penny Stocks : Ames Department Stores (AMES) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (894)	12/25/1997 7:57:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1911

A x'mas eve report from Natick, Ma. AMES store. Store was sparsely stocked. All the empty racks were removed, Store looks like had sold off half the merchandise except TV's. Inventory going into the season cost $540 million. Left over of $270 million would be a good estimate. Based on last years overhead and $1.13 earnings with $360 million inventory and left over of $160 million(from memory). This year's estimate will be exceeded with comfortable margins. Results should be out early January. Gross margin was improve 1% in 1996 over 1995. This year the gross margin is furthur improved, estimated over 28%. Cost of inventory plus direct labor is cost of goods sold. Gross margin is selling price minus cost of goods sold. However, the E-commerce site Amesmusic.com managed by a vendor has music tailored more to the teen aged youth. Whether, the youth has the time to access the internet or not, remains to be seen. It is done professionally but the sales revenue has to be watched carefully, after advertizing is properly done. Cut off as soon as it does not meet plans. The internet is occupied by people aged 25-65, with substantial income.