Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bilow who wrote (817)	3/11/1998 8:34:00 PM
From: Street Walker	Respond to of 971

This stock is a real DOG! You're quick TA is the general opinion of anyone researching the company. Brokerage firms project trading at $12 in one year. This will obviously be on hype, rather than great financials. For the obvious reasons, I'm going to SHORT this dog when it tops tomorrow. Lots of profit takers will be coming out of the woodwork now that earnings are out. They were expecting a 4 cent loss. I think they only had a 3 cent loss. Beating the street by 1 cent isn't that big a deal. Only hype will take it higher. Remember these brokerage upgrades are for the LONG TERM, not short term. If I had been long this stock at lower levels, now is the time I would take profits with a smile and move the money to a better stock (itvu), or better yet, SELL RAYS SHORT with your profits! If you are selling to take profits, you realize that the stock has little hope of going higher in the near term, and more than likely going to fall. So if you believe this, put your money with your beliefs! Take a profit and then short. If one personally likes RAYS, then sell for the profit, let it fall back to $8.00 over the next few months, and after the general market correction, and then load up for next earnings. Just my thoughts. My prediction: RAYS will quickly rise, then dwindle. S.W.

To: Bilow who wrote (817)	3/11/1998 8:51:00 PM
From: marc chatman	Read Replies (1) \| Respond to of 971

In a nutshell, they grew the business mainly through a string of acquisitions, buying out small competitors. By adding stores at a rapid rate, the company gave the analysts a nice growth story -- dominating player, expanding into worldwide markets, accelerating revenues. The model is great for getting its founders rich, but that's about it. Someone ends up holding the bag when the growth slows and the company has to live or die by its performance. I think you could find any number of retailers, restaurant chains, etc., which fit this profile. After the inevitable crash, it becomes a restructure story. Time to close non-performing stores and slash SG&A, a la Al Dunlop. The problem is that it took these guys about a year longer than it should have to do the deed. Those who were lucky enough to buy in near the bottom and patient enough to wait it out are getting a pretty nice return. The trick will be to know when to jump ship.