Its funny how people can spin data to fit their
own agenda, IT IS TRUE that Q2-00 margins were
slightly lower than Q2-99:
Profit: 52.75% 54.2 %
Income from ops.: 25.5 % 26.8
Net Earnings: 16.0 % 16.2 %
BUT, look at the
big picture, the REAL TREND for Bebe:
P. Income from ops
FY-97 43.2 % 8.9 %
51.1 % 19.5 %
FY-99 52.6 % 22.3 %
Q1-99 52.3 % 20.5 %
Q1-00 52.5 % 21.0 %
IS NO DETERIORATION !!!!
If you are a trader,
all this info is worthless but if you bought the
stock as an investor, there is not much to be worried
In looking back shall one wish, one would see
that my initial approach was not hostile. Sometimes
people may think "anyone" who is speaking in contrast to
the majority or to ones liking, may be going short.
Such is human nature. At least I said I was not
I had thought that by expressing my involvement in
the industry would give more credence and support to
some of my statements.
I doubt the majority of
"the board" here is in the Apparel Industry.
No need to be hostile, I just couldn't figure out
if you were long ot short. Having read past posts,
it looks as though I'm not alone. If you're looking
for so many reasons for sloppy performance, why not
short it "in the box" You might profit both ways. Spare
me with the lecture, I've been investing since '73.
As for the rag business, what makes you think you're
the only one on this board who's familiar with it?
You have no idea who posts here.
Listen, you ignorant being. First, YOU read the
news or LISTEN to the CC and you will learn the amount
of stores being open.
I reiterate that I am
in the business because believe me, I know all the
ramifications that you are clueless about. That does not mean I
am short, fool. I bought this stock knowing the
risks. I just laugh at times reading some of these
idiotic posts who are clueless, yet hopeful. Reading the
financial is not enough when it comes to owning a stock in
the rag business. But, you think your sharp. Ever
hear of rags to riches? Well, it often goes vice
If you do not like my "devils
advocate" approach nor more realistic thoughts while you
dream then shove it.
For providing the truth for the board. When
retailers expand margins generally get hurt but the larger
top line growth still let's you generate larger
profits in dollars - albeit at a lower margin. That is
one of the simplest concepts on earth yet many folks
have run from this stock. Since BEBE has the largest
net margin of any retailer I've ever seen, I'll let a
little margin slip away (please someone show me a better
one so I can buy it).
The funny thing is that
the BEBE folks are doing this on PURPOSE - they want
to grow their business and they don't care if their
margins slip because they know how it works. Some of the
negative comments I've heard seem to imply that BEBE is in
trouble and is scratching to survive. Nothing could be
further from the truth.
I do, however, have one
small worry. Expansion has taken many retailers down to
their knees. I always felt BEBE's very conservative
expansion plan was a huge strength. Some have suffered by
opening too many locations and others have suffered by
trying too many product lines.
BEBE seems to have
done well with the shoes. Let's hope they can do the
same with this more aggressive store opening program.
retail are indeed out of favor, but I believe
that they will be in favor MUCh MUCH sooner....like
march, april......this month, and this qtr. are going to
be difficult, but the day those two things are over
it will be like the light was switched on.
a side note......I actually had 4 out of 8 stocks
in portfolio go up today!!!!
so as you can
imagine.....I'm smiling :)
Hold on! You and I are singing from the same Hyme
book. I totally agree with you. I think the financials
look outstanding. I also think that the CFO is very
capable, and is more key to the company's success than
Greg. I was just pointing out that I don't agree with
topoftam as to the reason the stock isn't moving. They are
victim to a sector that is currently out of favor. IMHO
I have been, and will remain long, I just think the
stock will be stuck in a trading range until retail is
in vogue again. Which may take a number of
again..just my opinion.