Well, volume not too impressive...
With the terrific numbers ELBO put out this morning, I would have expected the volume to exceed 500K today.
On the other hand, we didn't experience the "sell on the news" phenomenon, either. I have a feeling the analysts are "digesting" this morning's numbers and will subsequently be raising their estimates. After all, who would have thought they would report .19 vs. estimates of .10?
Also important to remember, January/February should be real strong months for gaming software as all those who got the Dreamcast, etc. for X-Mas will undoubtedly be buying new titles to play...Get ready for the Sony, too.
The additional shares of the SPO should be viewed as a positive for ELBO, as it allocates more to the float for institutions without having a real dilutive effect on the shares.
IMHO, with the new hardware consoles coming out and the subsequent increased demand for the games, ELBO is poised to take advantage of the growth, as they have already begun to demonstrate. This is the beginning of a new growth cycle for the gaming industry, and ELBO should be trading at a premium to their peers based on growth numbers.
EBKids:
EBKids looks to be a great idea. Ever heard of Zany Brainy (ZANY)?
While they are just starting to open EBKids, I think it will be a profitable venture to compliment EB Boutique and EBWORLD.COM. Visit a Zany Brainy store and look at how busy they are. There is definately another niche in toys/games/educational software that doesn't incorporate violence and is targeted to the 3yr-12yr old...
The conference call could have been better as far a being prepared for analysts questions (i.e. uuhhh, we don't have that breakdown in front of us right now...), but the numbers speak for themselves, IMO.
Should start to see ELBO trade higher as we approach X-Mas and beyond. 'Ol Greenspan speaks tomorrow, so anything goes... :-)
Best of luck SCOTT
PS I also like the fact that this thread is so inactive...ELBO really hasn't been "discovered" yet..and remember EBWORLD.COM puts us in the 'Net phenomenon, so any e-commerce hype that comes out from the "experts" as we near X-MAS could push ELBO north nicely ;-) |
