More on HomePro...

HomePro plans to aggressively expand in the upcoming years by increasing its total number of stores to 30 within 4-5 years. Management believes that 30 stores will be a saturation point for the market. The company already has plans to open up four new stores in the second half of 2004.

Combining HomePro's expansion plans with their current same store growth rate creates some very interesting and bullish future projections for the company. Complete projections can be viewed HERE in MS Excel format, please download this small file to view the projections. The projected EPS for the next five years are:

It should be noted that we assume HomePro's net margin stay the same in our projections at 3.01%. For the first quarter of 2004 the net profit margin was 3.6%. The projections are also conservative in that they only include operating stores at the beginning of the year. For example, the company should have 20 stores in full operation by the end of 2004, but the projections only account for the 16 operating stores at the beginning of this year.

The share price projections are based on future P/E ratios of 10, 12.5 and 15 times. It is interesting to note that Home Depot in the U.S. has a trailing 12 month P/E of 18, compared to HMPOR's 13. The conservative P/E projections demonstrate that HMPRO could make a very rewarding long-term investment to patient investors.  Coupled with the fact of a continuing dividend, HMPRO is an "ideal type" of stock selection we like making here at Thaistocks.com.

Best Regards,

Nathan Szabo

Thaistocks.com