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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (3131)	9/29/1998 8:17:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 4634

<<I'l race this puppy on my 5% horse>> I'm going to go out on a limb and assume that you've never shopped at a Costco or seen one in action recently. One of Costco's strongest stores in the Northwest is in Santa Rosa California (about 1 hour north of San Francisco). If at all possible, I STRONGLY urge you to visit it. At least take some time to call the managers of several of the warehouses (check www.costco.com for locations) to ask how business has been. Costco recently opened 5 new warehouses in Detroit and is about to make a big push into Chicago. Business in Detroit has been fantastic and I'm turning backflips over Costco's prospects in Chicago. A well-run Costco can generate over $80,000,000 in sales a year. I'm guesstimating that the Chicago units can do damn near or over $100,000,000 each. I'll make you a friendly wager that Costco will surpass it's all-time high well before another year goes by. That's a little bit more than the 5% return you're thinking about. IMO, Costco's current multiple is deceptive and dirt cheap. Costco is a category killer. I stand by my long term price target of $200+ a share