or $7.7B mkt cap. My estimate of a KBtoys spin
off being worth $2B is way off. This could double CNS
market cap by year end, especially if they spin off the
company to the holders after the IPO. Merrill Lynch was
right, this is worth $60 (plus). Good investing.
Why is this stock dropping so quickly??? Earnings
were a bit better than estimates. The e-toy thing
looks good. Star Wars has to be driving the business on
the toy side. The closeout stores that I have visited
in my area look better than ever. Should I sell now?
Is there a turnaround in the future??
I'm sure that a 300 point drop in the Dow could
any stock. This coupled with deep
softening in internet stocks
robbed CNS of upside
movement with the .com announcement.
only be a short speedbump as CNS is going to
continue rolling to a great year. Growing pains ease
each week. Do Not lose confidence ky_trades.
Here is a blip from the article referenced in the
"Another one I like is
Consolidated Stores (CNS 15 5/8). It is trading at $16 and
down from a high of $39. They had a blip in earnings
that was unexpected. Consolidated Stores is a closeout
company as well as a toy retailing company. The toys are
doing so, so. It is the world leader in closeouts. This
is a $4.8 billion company. Many times we have
purchased shares after they come down, and gained 50% to
100%. They are on our Buy List and we are looking for
$30 in 12 to 18 months."
I recently purchased a used Super Nintendo system
with a dozen games for under a hundred bucks. My son
(9 years old) doesn't even look at N64 anymore. His
friends come over and they just want to play Super
Nintendo. My son and his friends should be the top market
for the new systems, but that ol' Super NES was just
to damn good a machine, with endless titles.
Somebody dumped a load of shares a full six days
before the profit warning. What kind of bullshit is
I have looked for a alert:block trade this year
that took place before that one and couldn't find one.
Just lucky i guess.
I smell an
Friday July 2, 2:30 pm Eastern Time
BLOCK TRADE -
Consolidated Stores Corp
at 23-3/4, down 3/4 crossed by
Salomon Smith Barney
New Merrill update (when CNS was $31) says that
the weakness is related to the internet in two
1) Concerns that on line toy sales will cut into
traditional store sales and therefore cut overall margins,
2) alot of players are moving into online toy sales
besides eToys, therefore reducing online valuations
Merrill believes that the online winners will be the
existing players such as ToysRUS and K-B because of their
extra leverage and name brand awareness. Unfortunately,
this will have to play out to see if it holds true.
Also, and the proposed KBToys IPO is 6 months or more
away and in internet mania that's a
Merrill also said that KB was only showing 3-4% same
store sales growth this quarter versus a 5% plan (due
to less than expected star wars sales). However,
they also said that several other divisions were
EXCEEDING their targets and that 2Q earnings were on plan.
They again stated their $60 target and a 1-1 buy
rating. Me, I recently doubled up at $25 and change.
However,this drama may take 9 months to play out...so it
depends on your time horizon if you want to see it
through. Good investing.