Hearthlist Digest #206 - Saturday, September 19, 1998 Re: Hearthlist Digest #205 - 09/18/98 by "Roger Sanders" <[email protected]>
(back) Subject: Re: Hearthlist Digest #205 - 09/18/98 From: Roger Sanders <[email protected]> Date: Sat, 19 Sep 1998 18:37:00 -0500 Craig wrote: > Any ideas on why the stock (CFM) has been hit so hard? ---------------------------- Hi Craig, Here is a best guess, based on the obvious, not on insider information: 1. CFM has gone down so much because of the very same reason that it went up much more rapidly than our DOW or S&P 500. 2. Uninformed investors previously ran it up way past good judgement on price/earnings ratios for this kind of stock, based on speculation that CFM was positioned to dominate our hearth industry in the US. 3. CFM is continuing to expand in the US but it probably hasn't done much to improve it's market share, much less dominate our tradition bound, US fireplace industry. CFM's new VC Radiance is exceptional in appearance and price, the new Defiant looks great but these SKUs aren't going to do much for CFM's price/earnings ratio. 4. Investors are continuing their flight to quality due to international and presidential issues, so CFM is a strong sell. Craig, CFM should blame it all on Judge Starr. (If that dirty Ken Starr would have left your president alone to continue his many taxpayer paid conquests of "kidos" in the oval bedroom, your president would have solved all our international issues by now) :-) CFM is probably getting a good value now in their buy back. If I had $10K to speculate right now, I would buy CFM too. --------------------- Some more Apple bites: One of our new iMACs (that we network in a high visibility area) is an amazing customer attention getter. I'm sure that we've helped Apple sell quite a few more iMACs just by our customers seeing iMACs in operation running HearthPro. The iMAC is a very good machine and an exceptional value. I'm suprised that a fast $999, iMAC clone running Windows98 hasen't been marketed yet. When they come out, we'll replace some more of our old 68040 MACs with them. The iMAC is so good that at least it will force the Apple detractors to say that Apple sure went out with a big bang. Roger Sanders Fireside Spa & Patio