As of today, 1/23/2000, both Toys R Us (TOY) & E-Toys (ETYS) have great web sites & $2.5 bill market caps, but look at the financials for the better value:
Per e-toys 10q for quarter ending 9/30/99:
- sales of $13.3 mill
- loss of $45 mill or .38/sh
- 120 mill shs o/s
- total current assets of $211 mill
- total liabilities of $82 mill
- market cap on 1/21/00 of $2.5 bill @ $21/sh
Per Toys R Us' 10Q for qtr ending 10/30/99:
- sales of $2.5 bill
- positive income of $15 mill or .06/sh
- 243 mill shs o/s
- total current assets of $3.7 bill
- total liabilities of $5.7 bill
- market cap on 1/21/00 of $2.53 bill @ 10.6/sh
- toys r us has a brick & mortar dvantage over e-toys; is making money; & has the ability to spin off & divest all sorts of lines of businesses including Toys R Us Japan
- per one investment report "the company shipped $39 million in goods over the Internet and ranked fifth in Media Metrix's ranking of the top 25 e-commerce sites for the holiday shopping season, behind Amazon.com (AMZN:Nasdaq - news), Ebay (EBAY:Nasdaq - news), Etoys (ETYS:Nasdaq - news) and barnesandnoble.com (BNBN:Nasdaq - news" And then explained how Toys R Us did remarkably well considering its recent entry to on-line retailing
- so how can e-toys' market cap resemble; let alone outshine toys r us' market cap; given the financials & brick & mortar advantages? |
