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Gold/Mining/Energy : EATON'S IPO (JUNE 2ND) -- Ignore unavailable to you. Want to Upgrade?

To: Wizzer who wrote (29)	3/16/1999 7:28:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 68

Wizzer: The writedown is not suspicious to me, why would you think it suspicious? I have been to their stores lately and saw the markdowns personally, so I'm not surprised by this. The fashion business is cutthroat as is all of retailing. Part of this writedown was a considerable sum for shrinkage. I wonder where this shrinkage is coming from -- customers or employees? One other item that caught my eye was the sum of $10.7 paid in severance to the 270 employees let go recently. That works out to almost $40,000 per employee, a pretty big sum for a severance. Must have been some executives getting a bit of a handshake. They seem to be getting a better handle on operating costs, but there is still lots of work to be done to turn this ship around. They have a few quarters to try to get back to break-even. I'm sure they want to break-even before they go into the next year-end or to make themselves more enticing to a potential acquirer. It will be difficult to turn things around and right now the jury is out as to whether their new orientation has been a wise one.