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To: Terry Council who wrote (89)	7/25/1998 8:15:00 PM
From: Ron Kline	Read Replies (1) \| Respond to of 550

To Freeus and Terry- Terry you said exactly some of the reasons I think this company is primed for some incredible growth numbers. They will be opening more than 30 stores this year and by looking at their store growth they are running a very efficient operations from the day they open the door. Typically you do not see such high margins in this business but they have I think done the best job of managing inventories and making a profit. Then there aquisition will double the size of the company and stores. I see them using there ability to opperate these stores more efficiently and will really pay off for them in the next year. You also need to look at the industry group they are in. Even the bad stuff is doing well like fumbled Musicland stores which overpays on Commercial space and doesn't have nearly the profit margins or solid management. BBY is been doing very well as I look to them to get a feeling for the overall industry. It also barely went down during all the correction so it looks good. I like to see insider buying and no big dumping of shares. I'm keeping an eye out but as far as I can see it looks like much more buying going on than selling. Of course they bought at good prices but since June there has been 0 sales. If the price was over-inflated you would see many shares come off the table. I think it bodes well for the future. By the way I don't even see the Online part that they plan to roll out as even reflected in the price. I think there is not enough information that anyone can really value that in the stock right now, and that means more potential appreciation ahead. I have no real solid info right now when they plan to roll it out but would estimate the fall at least. The PE of over 60 is high for this business but when a company is growing at 300% that multiple should be able to go even higher. Consistent earnings is the key and with a 98 EPS ranking it means they have outperformed 98% of traded companies out there. The ranking doesn't just take into account a recent quarter but looks at recent as well as historic earnings. It's hard not to feel pretty bullish on the stock. I noticed MPT review has the company on its list. They look at reward risk of a company and it's positive shorter term (months) indicator, but can also be longerterm depending on how long it stays on his list. When I see it come off the list I will let people here know. It doesn't always mean that it's a sell at that point but that the reward risk is getting higher and his model takes this into consideration. It just appeared last month so it looks like this could be one to hold for a least the next few months. Technicals are also great. I told people that $15 was breakout and you could have bought and never had it go below that. I still hold to that even though it doesn't sound that great now that we've seen it go to $25. The only negative as I see it is the jerking around by specialists like you said. If this was a bigger company you would not see that kind of drop with no news to even account for it. Something I hate about small caps but will live with it because I think the potential and prospects seem worth the gamble. I guess I should take advantage of their dirty tricks and pick up more shares. Ron