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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (8182)	8/29/1998 9:48:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken, found this on OMX: Impressive Growth For Office Superstore (OMX) Thursday, August 27, 1998 Karen Sack of Standard & Poor's The Outlook says that office megastore operator OfficeMax (OMX) should continue to see above-average earnings growth well into the future. The firm runs 753 full-size stores in 48 states and Puerto Rico along with 10 joint-venture stores in Mexico and Japan, more than any other office products superstore chain. Office products stores is one of the fastest growing segments in specialty retailing, according to Sack, but OfficeMax also has its eyes on other areas. For instance, CopyMax is a 24-hour copying services store-within-a-store. FurnitureMax, another in-store idea, is attacking the high-margin, $12 billion office furniture market. The firm is also testing PDQ, an express store with over 2,000 high-demand products in a store less than one-third the size of a superstore. OfficeMax also sells an assortment of merchandise over the Internet. The firm also plans to add 120 new superstores in the US during FY 99, with half of these in new markets. The firm is enjoying a healthy 27% four-year compound annual growth rate to nearly $4 billion in sales and an eight-fold increase in net income over that period. Sack predicts OfficeMax will announce a 25% increase in net income for FY 98 and forecasts annual earnings growth of 22% or more "in each of the next few years." She also sees a healthy balance sheet with long-term debt at just 1.5% of shareholder's equity. "With the company's ample opportunities for growth, the shares are a buy for superior capital appreciation," Sack says. For more on Karen Sack's recommendation see "Quick Picks #3," August 17, 1998, Dick Davis Digest. The digest excerpts from over 400 investment publications highlighting important, timely and relevant advice. investools.com