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Non-Tech : Costco, slow but sure? -- Ignore unavailable to you. Want to Upgrade?

To: WalleyB who wrote (684)	8/31/1998 10:25:00 PM
From: Mel Fox	Respond to of 1147

Jim: Tis' a bit bloody now ... but, I think you are right, the fundamentals are still solid, the growth is still there, the stores are still very, very busy, and buying will return to the market. My guess is that we will retrace back to the low 50's rather quickly once the confidence returns to the market. When does that happen ... well, I just got back from the "upchuck store" with a new supply of barf bags!!!!!! Interesting thought ... my wealthy client is NOT a buyer yet!!! He has several hundred thousand dollars to invest resulting from the F & C $1.2 million house sale last month. He is waiting for the momentum to head north before he commits to the market again! As I said, I am not a margin buyer ... though the market is creating a tempting opportunity ... I use Waterhouse Online broker ... their margin rates are a little over 8% ... so, on an annual basis, whatever you buy, needs to have a greater than 8% return to break even! Others may add more to the idea of buying on margin ... if I do buy on margin, it will only be because there is compelling reasons to do so!! Best of luck to us all and look out for falling people, er, objects!! Mel

To: WalleyB who wrote (684)	9/1/1998 7:07:00 PM
From: Leeza Rodriguez	Read Replies (2) \| Respond to of 1147

Costco may be a way to play the Y2K issue. In the 2H of 99, it is reasonable to think that many consumers will start to hoard increasing bulk quantities of food, batteries, medicines, etc. Costco certainly comes to mind here. Gene Epstein, one of the macro merlin economists writing for Barrons, recently mentioned that the entire economy could potentially overheat (with spending) as the world 'stocks up' for the turn of the millennium. I think he refers to it as the 'bunker mentality', Makes a lot of sense to me. While I sure don't expect the world to end, I wouldn't be surprised if there is some disruption in the utility sectors which could create temporary havoc for everyone else. I traded some of my technology stock this morning for shares in Costco. Furthermore, I know that Costco is developing extranets to its supplies and vendors. This is going to result in some significant savings to SGA line item on the balance sheet. Leeza Rodriguez