My opinion is that if it's a war - a toy business and business model war - then I bet on the power and brains of 70,000 people versus 3 or 4 hundred. And for each 4000 shares of TOY, there's a person somewhere doing something - stocking, ringing up sales, solving customer problems. You get one different person, maybe a super peson at ETYS--- but for each 370,000 shares. Maybe it is a whole new paradigm and 300 people are the better of 70,000. Some risks too. If there's a big earthquake in Los Angeles or the Flu hits Southern California-- any of those 300 employees could be very much missed by the stockholders. As etoys builds out, they are going to have to invest in more employees or more contracts or more outsourcing. More expense cutting into possible profits. As TOY counteracts, they have the ability to reduce, consolidate, transfer, or shift jobs and people. They have an ability to reduce labor expense and increase profits.
(note: headcount per Yahoo. Which I recognize as likely not accurate or even measured the same by etys and toy.) |
