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Stocks F / Friedman's Inc.

URL:  http://boards.fool.com/short-term-opportunity-10772446.aspx

Subject:  Short-term opportunity Date:  4/15/1999  2:44 PM
Author:  zanman2 Number:  9 of 28


I'm not a short term investor, but I think that FRDM has got potential for a burst upward in the next few weeks. Earnings forecasts for 2Q '99 (the quarter ending March 31) only call for earnings of about $.14 per share (highest estimate is $.16 per share). However, the company announced about a week and a half ago that revenues for the second quarter are up 25% from 2Q '98, and that same store sales ("comps") are up an amazing 16% from last year. FRDM earned $.18 a share in 2Q '98; it therefore seems to me that earnings for 2Q '99 are going to probably be in excess of last year's performance, and very likely in excess of even the most optimistic estimates for the quarter.

Assuming margins have stayed constant, the projected earnings for 2Q '99 would be about $.23 per share, based on last year's performance and the r