eToys Inc. (ETYS) Message Board

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Technology Stocks : eToys Inc. (ETYS)

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To: gtc123 who wrote (607)	8/9/1999 11:02:00 AM
From: Rajiv	Read Replies (2) of 1330

Last quarter, ETYS generated revenues of around 9 million. The # of outstanding shares is 120+ million (numbers are post-BabyCenter acquisition). Have you looked at the P/S multiples of other e-commerce stocks? EGGS, ONSL, UBID, etc. Compare them with ETYS.. Have you looked at the business model? Last quarter, ETYS generated revenues of 8 million. Did you look at the inventory at the end of the quarter? 11 million. How many e-commerce companies do you know which carry inventory which amounts to 4monthly sales ? Have you done the math - how much inventory it will have to carry in the 4th quarter? How much working capital do you think ETYS will require? Have you looked at how much cash ETYS has? Its cash burn rate will increase over the next few quarters - I am estimating that it will run out of cash by the end of next year.. And I haven't even started talking about the 100+ million shares which are in the lock-up period? Let me guess, you're shorting this stock.* If I feel that a stock is going to be lose a significant % of its value over the next year, I am usually short that stock (assuming I can borrow it). So yes, I am short ETYS. Regards, Rajiv

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