CONtext
Message 6367109
To: Gary Ku (2488 )
From: Anthony@Pacific
Tuesday, Nov 10 1998 7:22PM ET
Gary lets not carried away, stick to the published facts please...Ktel has 4.82 million in the float and a couple of million available within the next 3 months...Short is probably around 1.5 to 2 million after today....
You only hurt yourself by making stuff up....Thanks
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Message 6368212
To: Gary Ku (2492 )
From: Tom Hua Tuesday, Nov 10 1998 8:21PM ET
Reply # of 3109
Gary, it's mistaken to think every e-commerce stock is a potential amzn, it just ain't so. Although Ktel Express was launched in May with all the big commotion that drove its stock up to the moon, online sales from Ktel Express were insignificant, per the company CEO/Chairman.
CDNW and NTKI combined have all the major portals locked up (Yahoo, Excite, AOL, Lycos, Infoseek, Disney, Netscape, Ticketmaster, VH-1, etc...) and they are still having a tough time competing against AMZN. CDNW/NTKI are paying tens of millions of dollars each year to become the online music sellers on those sites, only to find out that sales will probably never make up for the advertising/marketing costs. Already, NTKI is defaulting on its $12 MM payment to Ticketmaster. How much money does Ktel have? In the end the party that benefits from today's announcement is MSFT.
Another thing to keep in mind is that AMZN is followed by about 20 WS analysts, KTEL has absolutely no WS following, other than one or two unknown "analysts" who occasionally do a P&D job on this stock.
KTEL will continue to have wild swings in the next couple of days, but give it a week or two, KTEL will likely be in the single digits again. It's just a game of musical chair with this P&D stock. When the game is over, some people will get hurt badly.
Regards,
Tom
PS: I did short a bundle at 28 5/8. It wasn't fun watching the screen in the 2 mins after my order was filled. But the last 15 min of traing was fun
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Message 6368711
To: Tom Hua (2496 )
From: Anthony@Pacific
Tuesday, Nov 10 1998 9:07PM ET
I was one of the analysts that initiated coverage when I was still at a NASDAQ Firm back in April, My buy Reco.at 21 ( pre-split) was released on April 15th,, followed by my SEll on May 2 at 76.00.
Released On Businesswire and on Bloomberg
I think we have a peak of roughly 35 to 38..but considering all the Yahhoo's that trade this stuff on a daily basis..I welcome any runs up as it provides a great oppurtunity to increase a short or start one...
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Message 6379196
To: USRX888 (2565 )
From: Anthony@Pacific Wednesday, Nov 11 1998 2:44PM ET
Reply # of 3109
WELL..the climax is over ...the fun is gone and the news is out....Turn out the lights ...I'll see K-Tel at 10 bucks again..
Its a good short( NOW at 30 Plus) and with insiders like these ...there will be no shortage of selling in the marketyy...
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Message 6449452
To: randy (2669 )
From: Anthony@Pacific
Tuesday, Nov 17 1998 10:45AM ET
KTEL FACES DELISTING!!!!!!!!!
Message 6451329
To: TokyoMex (2674 )
From: Anthony@Pacific
Tuesday, Nov 17 1998 12:41PM ET
KTEL president knew about ktel Delisting when the stock was 6 1/2...about a week before all the Bullshit press releases...What a scam... they should all go to jail
Message 6368711
To: Tom Hua (2496 )
From: Anthony@Pacific
Tuesday, Nov 10 1998 9:07PM ET
I was one of the analysts that initiated coverage when I was still at a NASDAQ Firm back in April, My buy Reco.at 21 ( pre-split) was released on April 15th,, followed by my SEll on May 2 at 76.00.
Released On Businesswire and on Bloomberg
I think we have a peak of roughly 35 to 38..but considering all the Yahhoo's that trade this stuff on a daily basis..I welcome any runs up as it provides a great oppurtunity to increase a short or start one...
Message 6536663
Bill, Here's a wannabe internet that should be on your list...
(11) Eleven to pennies????
Are you shorting K-tel. Check out the article I found.
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Message 6526608
To: Brentsky (2832 )
From: ztect Monday, Nov 23 1998 4:56AM ET
Reply # of 3109
IS K-TEL GETTING WHAT IT DESERVES?
Links:
redherring.com
redherring.com
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Message 6526608
IS K-TEL GETTING WHAT IT DESERVES?
Links:
redherring.com
redherring.com
IS K-TEL GETTING WHAT IT DESERVES?
By Peter D. Henig
Red Herring Online
November 20, 1998
They say what goes around, comes around.
If so, K-Tel (KTEL) might have a lot more coming to it.
The disco-era music retailer, which conveniently reinvented itself as an Internet company at the first sign of Net-stock madness, has just disclosed in an SEC filing that it may soon be delisted from Nasdaq due to asset requirements. Delisting would force it to trade on the less-prestigious and less-liquid Nasdaq small-cap market.
And that's not all. San Diego law firm Milberg Weiss -- the bane of many a high-tech company -- announced on Thursday that it has commenced a class-action lawsuit on behalf of people who purchased K-Tel stock between October 27 and November 17.
The suit alleges that while K-Tel's shares surged in November from less than $7 to more than $39 a share on news that the company made plans to sell music over the Internet, it also concealed information about its potential Nasdaq delisting.
K-Tel had received notification from Nasdaq of the possible delisting more than three weeks ago, but did not disclose the news until its November 17 quarterly filing -- a big no-no in the eyes of the Securities and Exchange Commission, which requires any "material event" to be fully disclosed.
K-Tel president Larry Kieves stated that he did not consider the delisting to be a material event.[ editorial comment: stiffing too much glue? ] But the market thought differently, slicing K-Tel's stock in half.
An Internet player?
This is quite a comeuppance for a company that saw its stock soar after declaring itself an Internet play -- on the strength of a press release stating its e-commerce intentions.
"K-Tel deserves almost no valuation or listing, in my view," said Keith Benjamin, Internet analyst with BancBoston Robertson Stephens.
Mr. Benjamin should know: The Internet analyst is used to seeing -- and believing in -- high-growth Internet plays with little to no net profit, like Lycos (LCOS), Amazon.com (AMZN), and Sportsline USA (SPLN). But even by their standards, K-Tel's financials look downright poor.
For the three months ended September 30, 1998, sales fell 25 percent to $18.8 million and net losses totaled $3.1 million -- a stark contrast to year-ago net income of $1.2 million. When was the last time anyone heard of an Internet company without top-line growth?
"It's got a Zapata-like tone to it," said Dana Serman, Internet analyst with Schroder & Co. The Texas fish-oil company Mr. Serman referred to also declared itself an Internet play, going so far as to make a takeover bid for Excite (XCIT); since then, it's abandoned its portal ambitions and cancelled plans to buy 30-some Web sites.
"It's hard to imagine whether [K-Tel] was ever worth where the share prices got to," said Mr. Serman.
More trouble
The company also came under fire for not disclosing management changes.
Mr. Kieves was hired as president in October, replacing David Weiner who had left the company a month before. But K-Tel did not issue a press release concerning the management shift until November 3, leading Nasdaq to criticize the oversight.
"I've never owned K-Tel, never even considered it," said Ryan Jacob, portfolio manager of the Internet Fund. "It was all just hype which took on a life of its own."
The company now maintains that it can easily raise the cash to meet Nasdaq's minimum $4 million tangible net asset requirement for listing. Tangible net assets are defined as total assets, excluding goodwill, minus liabilities.
But the damage to K-tel's reputation and share price may be too extensive for any future revival -- in a catch-22, the decline in its stock may prevent the raising of needed capital.
K-Tel's plight may reveal that even in the ether of the Internet, some companies still have to prove their fundamental worth.
"The stock price was [is ]completely removed from their financial position," concluded Mr. Serman.
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Also, see:
Message 6531309
Message 6531664
Message 6533334
Message 6536181
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Subject: Bill Wexler's Profits of DOOM
To: ztect
From: Bill Wexler
Nov 23 1998 6:40PM EST
Reply #3800 of 4248
KTEL is a joke, I've mentioned it before for the amusement value. I still wouldn't touch it as a short though. The fact that it didn't crash immediately to pennies when the delisting announcement was made (coupled with the obvious fraudulent concealment of said delisiting by management) tells me that this stock should not be touched long or short.
My primary short target right now is DTLN.
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