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To: drsvelte who wrote (1401)	7/30/1998 11:09:00 AM
From: Shelia Jones	Respond to of 14427

Forget the clothes, Bleach - that's what we need. CLX up 10 pts. LGTO up 1 1/4 , even the casket company is awake (partially) from the dead today. Updated: 30-Jul-98 Quotes at time of story, top stories today: (TOM 08:55) (CLX 09:30) 09:30 ET **** CLOROX (CLX) 94 3/4 unch. It may only be laundry bleach, but it is hot. Before the open on Thursday, Clorox reported second quarter profits of $0.93 per share. That is a full 12 cents ahead of the First Call consensus estimate. Revenue rose 7.5% and per share earnings were up 31% from year-ago levels. The company understandably notes that cost controls were important in achieving the strong profit growth, as was "progress toward achieving our long-term objective of bringing our tax rate more in line with that of our peer group." The company also notes the underlying growth, however, citing the 41 products recently launched and the benefit of international acquisitions. The stock has been a steady performer since late last year, and it is hard to find anything in this report that will hurt the bulls' case. CLX, incidentally, does not have a history of beating earnings estimates. The last three quarters the company came in 1 cent below, on target, and 2 cents above. Often, when a steady performer like this beats estimates, it can lead to upward revisions to earnings estimates for future quarters by brokers. Strong earnings momentum also often leads to a company beating estimates in future quarter. CLX certainly has earnings momentum now. This won't turn into a momentum stock play anytime soon, however; it is just too boring for that crowd. But its numbers look good. Chart 08:55 ET **** TOMMY HILFIGER (TOM) 52 +1 15/16. Fundamentals of this recent momentum play remain strong. Before the open on Thursday, apparel company Tommy Hilfiger reported fiscal first quarter (Jun) earnings of $0.56 per share. That was 3 cents better than the consensus forecast, and up from year ago earnings of $0.46 per share. TOM shares have had a great five year ride, rising steadily from about 10 to over 70 a few weeks ago (despite a down 1997) and were a momentum play early this year. Unfortunately, momentum stocks can have the rug pulled out from under them quickly, and this happened to TOM a week ago today when NB Montgomery Securities downgraded the stock. The stock dropped from 58 to 52 that day. The idea was that a weakening economy, as evidenced by a slowdown in home sales, meant that apparel and household items would see lower demand. There is also talk that a later start to the school year will lead to more aggressive pricing policies in August. Frankly, none of that really suggests the stock should have lost 10% of its value and, in our opinion, it simply showed that the stock had become overbought and momentum players left quickly. One piece of bad news, any bad news, pulled the rug out from under TOM. This morning, even good news on the earnings front isn't helping. The stock is indicated 2 points lower on the explanation that expenses were too high. Yet, that may once again be an excuse to sell rather than a real reason, as the basic fundamentals remain good. Per share earnings rose 22% from year-ago levels, and revenues rose an impressive 66% to $287.7 million from the year earlier period. The company has had steady growth of 40% in both profits and revenue over the past five years. The management track record is very good. The problem, of course, is that fashions change quickly, and investor fashions change even more quickly. TOM has a lot going for it, and management can maintain growth, the stock has appeal. Only this time, it may be on a value basis. TOM now trades at a trailing 12-month P/E of 17. Momentum players are still getting out, but fairly soon, it may be worth a look as investors might want to get back in. actually TOM opened up over +5 points