Hot Stock of the Week

[stock at boom.com]

 This Stock is a winner
  Market recommends a BUY on this Stock
  Hot Stock Tip:  CULS


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SLEEPER STOCK NEWS LETTER
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If you did not currently invest in the stock market, you may do so 
by contacting a local stockbroker.
Look under Stock Broker in the Yellow Pages.  We feel the following 
stock is worth setting up anaccount immediately.  
You may also sign up on-line at:  www.datek.com   or www.etrade.com 
 This will take about 2 weeks to complete to set up an online account.
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STRONG BUY/ AGGRESSIVE GROWTH:
(Nasdaq: CULS)

Symbol:             CULS
Shares Outstanding: Only 3.55 M    
52 week High/Low:   $3.8125-$9.25
Current Price:      $4.875
3 Month Target:     $7.50-$9
6 Year Target:      $9-$14


Cost-U-Less is a wholesale "club" store that is open to the public.  
It's main competitors are CostCo, Sam's Club, and Price Club.  
This industry continues to be in a growth phase that is expected 
to last at least 5 years.  
The Christmas Season is steadily arriving, and Cost-U-Less does 
extremely well during this season.  

TECHNICAL ANALYSIS:

Here is where Cost-U-Less looks the strongest:

Total Sales have increased over 25% from the previous year, 
while the company continues to be extremely profitable. 
      The main reason of the profitability is that same store sales 
have increased 6.1% while costs have remained stable.  
It is our estimation that 1999 earnings will increase
 more than 10% over 1998 earnings.  This is significant due 
to the fact that Wal Street is expecting a modest 4.3% increase. 
      Thus, the stock is largely undervalued.
Another indicator that the stock is undervalued is the 
Price to Earnigs Ratio (P/E).  In today's market, 
most growth companies have P/E ratio's ranging from 25-30. 
 Cost-U-Less (CULS) has a very modest P/E ratio of only 11.08.
     Lastly, Net Income rose 95% in the second quarter of 1999 
compared to second quarter of 1998. 
This clearly shows that the company is not only growing 
in terms of sales, but more importantly they are increasing
their margins and profits dramatically.



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Excerpts from Bloomberg:

"Total sales for third quarter of 1999 increased 25 percent 
over third quarter 1998. This sales increase is primarily due 
to two new stores opened after third quarter 1998."

"Net income was $753,000 in second quarter 1999 year-to-date,
 compared to $387,000 for the same period in 1998. This represents
 an increase of $365,000 or 95 percent over second quarter
 1998 year-to-date. The Company plans to announce third quarter 
1999 earnings on October 20, 1999."

Final Analysis:
This stock is Our SLEEPER stock of the week for obvious reasons.
We give it a STRONG BUY Rating for both short term and long
term investors.



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