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

To: LTK007 who wrote (8719)	9/13/1998 3:15:00 PM
From: Sergio H	Read Replies (3) \| Respond to of 29382

<Been checking QFAB and RAZR> Max, here's some preliminary research. You're right about earnings decreasing for both companies compared to similar quarters in the preceding year, but both stocks are undervalued. I am not planning on buying either stock without further research. RAZR This company has been around since the late 1800's producing razors,blades and other bath products. The stock has been beaten up due to Gillete's new product introduction. Gillete's new product is expensive and could end up giving RAZR an opportunity to add market share. After reviewing plans to sell the Company or to develop a strategy to improve shareholder value RAZR plans to introduce a new razor early next year. Insider buying demonstrates the insider's belief that RAZR will rebound. From the WSJ article posted on the RAZR thread. Message 4841229 "This year, however, ASR gave investors a surprise nick, recording a drop in first-quarter earnings (before restructuring charges) to $1.4 million from $2.6 million a year earlier. ASR blamed heavy promotional spending by competitors. It also said some retail chains delayed orders to leave shelf space for the Mach 3. " Reported Earnings Report Period...Year Ago EPS...Mean Estimate...Reported EPS...% Surprise Jun98 Q 2 .........0.28....................-- ..........................0.17............................. Mar 98 Q1 .........0.21................... 0.11.......................0.11.................... 0.0% Dec. 97Q4..........0.33....................0.36.......................0.38....................+6.0% Jun 97 Q3..........0.34....................0.37.......................0.37.......................0.0% Jun97 Q2......................................0.27.......................0.28.....................+4.0% Mar97 Q1....................................0.20........................0.21......................+5.0% Estimated Earnings Sep98 Q3..........0.37 Dec98 Q4.........0.38 Dec98 FY........1.23 QFAB QFAB designs, manufactures and markets woven upholstery fabrics for residential furniture worldwide. Their customer list includes virtually every major furniture manufacturer in the U.S. Approximatly 21% of sales are to foreign customers. Demand for QFAB's products has exceeded their capacity to manufacture. The Company has nearly completed an $80 million capital investment program. From their last 10q;"The decrease in gross profit margin percentage was primarily due to 1.) lower operating efficiencies and other period costs associated with the $80.0 million, two-year capacity expansion plan which the Company began implementing in 1997 and which is now substantially complete, and 2.) heavy overtime expenses associated with operating almost all of the Company's manufacturing areas on a six and one-half day per week schedule to meet customer demand." Reported Earnings Report Period...Year Ago EPS...Mean Estimate...Reported EPS...% Surprise Jun98 Q2............0.21....................0.17......................0.19....................+12.0% Mar98Q1............0.34....................0.15......................0.15......................+0.0% Dec97 Q4...........0.41....................0.34.......................0.31.......................-9.0% Sep97 Q3...........0.24....................0.41.......................0.35.......................-15.0% Jun97 Q2......................................0.29........................0.32.....................+10.0% Mar97 Q1....................................0.27........................0.34......................+26.0%