Elbo has successfully retested this support level for what I hope is the last time. I guess from a technical standpoint it had to prove a sound footing here in order to support the next advance. I think moving through $15.25 is an important next step. This is where the current 50 day & 200 day moving averages will be surpassed. If the stock price can do this with good volume, I would see this as a very bullish indication. This reminds me of the $6.75 to $21.00 run that started back in October of last year. It is still to early to tell if this is a head fake, or the real thing. One thing is for sure. It won't be dull.
After all, who ever heard of a company that will have revenue this year in excess of $750M, with a current market cap of $288M. Especially when the company has zero short term debt and will earn $1.23 (E) (consensus of 3 analyst) this fiscal year and $1.49 (E) (consensus of 3 analyst) next fiscal year. The company is projected to grow at a +21% rate over the next five years and is a market leader in an exploding field. I am also stunned that Wall Street hasn't caught on to the fact that ebworld.com is one of the few E-commerce plays out there that actually makes money. According to the company, 10M unique visits last year with 3.5M occurring in December 1998 alone, for a 1,200% increase in traffic. Internet sales alone this year should top $16M and add approximately 0.05 cents to the bottom line. I think the new EBkids concept (with its first store opening in September 1999) will be a blockbuster...and you would have to be from Mars not to know that the Sega Dreamcast debut scheduled for September 9th, 1999 is going to break all records for sales and earnings, especially since it is supported by 18 new game titles. I could go on and on about the E-games, IGN, CNET, and Hollywood video partnerships all signed within the last month but it seems that for some reason this stock continues to be overlooked. Oh well, just gives folks like you and me more time to accumulate:-)
All my best to you NW, and good luck with all your investing.
RBL |
