Well, compared to the yahoo thread there seems to be some adult supervision here.
I perused today's posts here and did not see mention of the news release by the much revered and reviled TJ. Although I personally believe that ZANY has merit that will outlast the current obnoxious assault of daytraders the following release i believe accurately points out some obvious inequities between ETYS and ZANY that most longs have been aware of for some time. It is as you can see from TJ but actually may be worthy of consideration if one is considering how much a stock like zany can be rewarded by the street for having the best of both worlds. Read it, enjoy it or lambast it, i post it simply for everyone's info.
BTW dh you don't know me but i used to enjoy the aipn episode back when....tomster
NEW YORK--(BUSINESS WIRE)--October 15, 1999--Tokyo Joe's Societe
Anonyme, the stock alert service at url: tokyojoe.com,
issued an alert October 11 on Zany Brainy, Inc. (NasdaqNM:ZANY.O) at 9
1/8. Tokyo Joe aka Joe Park, founder of Societe Anonyme, presented a
detailed basis for his purchase of ZANY based on comparative value.
Tokyo Joe states, "SA members from around the country have been
visiting and calling their local ZANY branches and reporting
statements by ZANY retail personnel that the company will institute
on-line sales within a matter of a week or so." See
zanybrainy.com
As for comparative value, ZANY competes against Etoys Inc.
(NASDAQ: ETYS.O) in the retail toy business. As of this week, ZANY had a
market cap of $223 million dollars. ETYS, on the other hand, had a
market cap of $9.2 billion. ZANY presently trades at less than one
times 1999 revenue estimates and is estimated to earn .31 a share in
1999, .53 in 2000, and .72 in 2001. ETYS, however, is trading at 900
times 1999 revenue estimates. In fact, ETYS is not expected to turn a
profit for a full three years. As of now, ZANY is a pure brick and
mortar store in 100 locations in 26 states, but those days are almost
over. As stated above, ZANY is expected to be premiering their new
website. A wild card is that ZANY may be working with a mystery
partner on the new website. Recently, Disney (NYSE: DIS.N) paid $60
million for 45% of Toysmart.com. ZANY reportedly has pledged $5
million to this initiative. As of July, ZANY had $23 million in cash
and $87 million in equity and had no long term debt. By buying ZANY
now, you get the brick-and-mortar infrastructure with the anticipated
e-commerce business as an extra. Compared to ETYS, ZANY is extremely
undervalued. ZANY is 36% owned by insiders, 45% by Donaldson Lufkin
and Jenrette, Vulcan ventures (Paul Allen) and Oak investment. Five
analysts cover it, including a buy rating from Deutche Alex Brown
issued on Oct 13.
In SA's last press release, dated October 6, Tokyo Joe had placed
a buy on Global Crossing Ltd. (NasdaqNM:GBLX.O) at 21 3/4. It then was
trading at 27 3/4. GBLX subsequently hit 38 5/8 on Oct. 12, 77% from
the initial buy and 39% from the price at the time of the press
release. After a brief pullback, Tokyo Joe reissued an alert on GBLX
on October 11, stating its "sell off was unjustified". GBLX then
climbed 3 points. On October 14, Goldman Sachs placed GBLX on its
recommended list. Other stocks with current alerts this week included:
Williams Communications (NYSE:WCG.N), up 2 1/4 from a buy at 29; Calico
Commerce, Inc. (NasdaqNM:CLIC.O) hit 61 1/8 from an alert at 56; LCC
International, Inc. (NasdaqNM:LCCI.O) up 5/8 from an Oct. 13 alert at 8
1/4; and Garden.com (NasdaqNM:GDEN.O) up 1 3/16 from a reissued alert at
15 1/4. |
