To: WinnerSBW who wrote (1049 ) 3/19/1998 1:32:00 PM From: Market Tracker Read Replies (1) | Respond to
Winner, - I don't think you are wrong to have a never-ending faith in AMES, because I feel it represents an excellent value play over the next 18-24 months. Frankly, I would be surprised NOT to see the price advance 50-100% from these levels over that time period. The retailing sector is in favor with the market right now, and I feel AMES has attained the "critical mass" to continue moving forward as the market re-discovers AMES. The merchandising strategy currently being used worked very successfully for them back in the 1970's, and it seems to be working again in the last 1/2 of the 1990's. They are opening new stores, and re-vamping the older ones. They have carved a marketing niche, have a corporate goal, (3% after-tax margins), and are currently progressing in the proper direction to achieve that goal. AMES has a management team that is intelligent, and receptive to suggestions from their shareowners and customers, i.e. they listen to the market (retail). They have in excess of $50. million in cash, (as they are supposed to) at this time of the year, as cash should always the highest just after the peak selling period. AMES debt/equity ratio is very good, and the 30% + return on shareholder's equity is the envy of 95% of the public companies in existence. Consumers are feeling the wealth effect because of ever increasing market values of stocks, 401-K's, IRA's, etc. So for AMES, the future is very bright.
