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

To: WalleyB who wrote (719)	9/24/1998 9:08:00 PM
From: solderman.com	Respond to of 1147

"I just don't understand what the market place fails to see in Cost." With COST trading at 25x this year's earnings, and 21.5 x next year's estimates, how can you say this? Earnings for the company aren't growing anywhere near that clip. I'd say this one is fairly and fully valued right here.

To: WalleyB who wrote (719)	9/25/1998 10:21:00 PM
From: Bill Wexler	Read Replies (4) \| Respond to of 1147

Why Costco? ..... It never ceases to amaze me how people always fail to see the forest before the tree when it comes to investing in equities. I would be willing to bet that there is somebody out there today who struggled to find a convenient parking space at a Costco parking lot, spent an hour loading up a palette, waited in a long line at the checkout, came home and immediately called his broker to buy a buttload of some speculative biotech or mining stock with no sales much less earnings. Worse still, the thought of buying Costco stock crossed his mind when he saw how busy the warehouse was, but after studying his charts he decided that it would be a better short because of a "head and shoulders pattern" or a "cloudy day with inverted flying ducks", etc. etc. etc. pattern. Maybe he was scared off because the P/E was "too high", or maybe he was worried about the effects of Japanese bank policy on total toilet paper sales in the United States. It is rare indeed when you get a "no-brainer" growth stock handed to you on a silver platter. Today's special is Costco. The last time I saw a retail business plan gel and gather momentum so dramatically was Home Depot nearly a decade ago. Costco is a category killer...period. In nearly every market Costco eats the lunch of its "warehouse club" competitors. This isn't an accident or a fluke. Costco's business plan has been developed over years through a lot of sweat and trial-and-error. In my opinion, Costco is not selling at a high multiple. In fact, I believe it to be grossly undervalued. I don't think the market has even begun to really recognize the Costco name value and its amazing business acumen. Investors have an opportunity to participate in Costco's next great growth phase. Remember, Costco doesn't advertise...yet it has a near 100% loyalty rate in membership reups and is gaining new members by leaps and bounds. Costco should be bought now, and it should continue to be accumulated over the long term. If the market takes it much lower in the short term, buy more. If the market takes it higher in the short term, buy more. The patient investor will not be disappointed.