Coverage initiated on Gander Mountain.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 1, 1994--Patrick Snell, Robertson, Stephens & Co. retail analyst, today initiated coverage of Gander Mountain Gander Mountain, headquartered in Saint Paul, Minnesota, is the nation’s largest retail network of stores for hunting, fishing, camping, marine and outdoor lifestyle products and services. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : GNDR), one of the nation's leading specialty merchandisers of hunting, fishing, camping and hiking products, with a buy recommendation. Snell estimated EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for fiscal 1994 at 49 cents, EPS for F1995E at 65 cents to 70 cents, and EPS for F1996E at 90 cents to $1.00. Snell based his recommendation on the following factors: 1) continued strong growth in catalog sales following F1994's 39 percent rebound, 2) an aggressive expansion of the company's 10-store "category killer Category Killer Large companies that put less efficient and highly specialized merchants out of business. Category killers can attain this status by being cheaper, easier, bigger, or more popular than the competition. " retail chain is just getting underway, 3) recent store openings have exceeded plan, 4) substantial room to expand its small 3 percent share of the $8 billion natural outdoor sporting goods market, 5) opportunity to leverage past infrastructure investments, 6) a projected secular earnings growth rate of 30 percent-plus, and 7) an attractive valuation. Snell said the current 18x percent multiple on C1995 97 cents EPS estimate is relatively attractive considering other category killers with similar growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. are selling at 20 - 25x percent C1995's earnings. CONTACT: Robertson, Stephens & Co. L.P.
Patrick Snell, 415/693-3293
Sheri Annes, 415/693-3595
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