BAMM -- “Da Bulls”

BAMM’s management has drastically improved operations over the last 3 years and looks like the company is becoming more efficient every quarter. Inventory turnover has increased consistently as inventory levels have grown slower than sales.

The company could have wasted cash on aggressively expanding its store base, instead management reduced debt from a high of $45M to a current level of $7M. At $45M in debt, debt-to-equity was 45% while currently debt-to-capital is at 4%.

The company raised its dividend rate by 60% in fy2007 to 32c per share and raised it again for fy2008 by 12.5% to 36c per share. This is certainly a good sign in management’s confidence in the cash flow generation ability of the business.

The company is coming up on arguably the biggest book sales even in recent memory with the last installment of Harry Potter hitting stores in July. This will be a huge event for the company and due to the strength of the balance sheet BAMM is in better financial position to wring out max number of sales.