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

To: Ken W who wrote (15704)	6/5/1999 2:00:00 PM
From: Sergio H	Respond to of 29382

RSC Ken, RSC has excellent fundamentals and is benefitting from the good news coming out in the electronics sector. <Electronic goods sales boom powers stocks Reuters, Friday, June 04, 1999 at 15:26 By Steve James NEW YORK, June 4 (Reuters) - From boom boxes to digital big-screen TV's to computer equipment, Americans' appetite for the latest electronic gadgets is driving up the stock of the big shopping-mall appliance chains. Shares in Circuit City Stores Inc. (NYSE:CC) , the No. 1 U.S. retailer of branded consumer electronics, Tandy Corp (NYSE:TAN) which operates Radio Shack stores, and Best Buy Co. Inc. (NYSE:BBY), were all trading higher Friday after robust sales reports. At 1:30 p.m.1730GMT Friday, all these stocks were trading at 52-week highs. Circuit City stock was $3.37 higher at $78.50. Tandy was at a year record of $87.06, up $3.25 from Thursday's close, and Best Buy was also above its best of the year at $58.06, up $2.75. "We have been bullish on all three and continue to recommend them aggressively," said analyst Donald Trott, of Brown Brothers Harriman. But he said that contrary to popular belief, the gains had little to do with the booming U.S. economy. "This is product-driven," Trott told Reuters. "It's across the board -- big-screen TV's, sales of computers are robust, telecommunications too, digital cameras." The latest news came Friday from Circuit City, which operates 546 Circuit City Superstores, two consumer electronics-only stores, 46 mall-based Circuit City Express stores as well as 35 CarMax locations, where it sells used cars and trucks. The Richmond, Va.-based company said first quarter earnings will easily beat Wall Street expectations on record sales. "Throughout the quarter, we produced strong sales growth across virtually all major product categories, including consumer electronics, personal computers and major appliances," chairman and CEO Richard Sharp said in a statement. Sales in its first quarter ended May 31, rose by 15 percent to $2.20 billion. On a "comparable" basis, that is in terms of stores open for a year or more, sales rose 9 percent. The company said its bottom line at its core Circuit City stores unit will rise by 63 percent from a year earlier to about 39 cents a share. Analysts had been predicting earnings of 20 cents per share for the corporation as a whole. However, its stake in its upstart Digital Video Express business, which offers long-term "pay-for-play" movie rentals, will drag total corporate income down 16 cents a share in the quarter. It will get a 2 cent per share boost from its CarMax Group unit, the company said. Taking those into consideration, Circuit City's overall results will be around 25 cents per share, blowing away year-earlier earnings of 13 cents a diluted share. The buying boom was also evident Thursday, when Minneapolis-based Best Buy said first quarter sales rose a higher-than-expected 23 percent to $2.39 billion. Best Buy said it expected first quarter earnings to be about 20 cents a share, which is 7 cents above the First Call consensus estimate and compares to earnings of 8 cents a share in the year-ago quarter. Also Thursday, Tandy Corp. reported a 17-percent rise in same-store sales for May at its Radio Shack stores.>