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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (12987)	8/13/1998 10:48:00 AM
From: Jenna	Respond to of 120523

CHCS..MOVA, WLFI, MLG, GTRC CHCS is just the newest for me in this group of companies that have been successful earnings plays and solid growth stocks for the past year. In Chico's first quarter of fiscal 1999 (ended May 2) sales rose to $26 million, up 38% from the year-ago quarter, and per-share earnings more than doubled from $0.13 to $0.28. Shares have followed, up 130% in the first half of 1998. ...Same-store sales growth (the increase in revenue from stores open at least a year) has been rising steadily, and reached 32.8% in May up from 1.7% increase in May 1997. .. ...with sales increasing at existing stores, the company is planning to use its strong cash flow from operations, about $7.75 million in most recent quarter, to fuel an expansion for its 148 stores to about 160 by the end of this year, and plans to increase openings in 1999. Kathleen Oher at Southwest Securities, who rates Chico's a "buy," believes the company can earn $0.73 in fiscal 1999 and $0.95 in fiscal 2000. Even with shares up so much this year, at a recent $17 chico's stock trades at a p/e of 23, based on fiscal 1999 earnings. attractive compared to men's clothier Abercrombie & Fitch.. whose p/e is 35, and the Gap, which sports a multiple of 38. CHICO's was also called a strong buy in a recent Barron's.