Thanks Mad2. Not sure how much of today's action was EBQ-related. In case you missed it, ELBO issued this press release this morning clarifying the EBQ relationship and impact on ELBO (none).
I'm wondering if the SPO didn't go so well and that was what we saw today. Over 2.2M shares traded hitting a low of 19. Seems as if the SPO was undersubscribed and so it was just dumped by the underwriters on the open market. Not sure at all that this is the case. Anyone w/experience in the underwriting market care to comment?
I was happy to pick up shares cheap today -- though my account is bloated with ELBO right now I won't reduce for less than 26-28. With Friday the kickoff to the xmas shopping season I hope ELBO picks up some good press along the way. Here's the press release from this AM.
Happy Thanksgiving,
TJ
Wednesday November 24, 11:14 am Eastern Time
Company Press Release
SOURCE: Electronics Boutique Holdings Corp.
Electronics Boutique Holdings Sees No Negative Impact on Earnings Due To
Increased Competition in U.K. Market
WEST CHESTER, Pa., Nov. 24 /PRNewswire/ -- In response to a profit warning issued by Electronics Boutique plc as a result of discounting on games for the
Sony Play Station, Electronics Boutique Holdings Corp. (Nasdaq: ELBO - news) today announced that it does not expect to see any negative impact on its
earnings.
Electronics Boutique Holdings Corp. has a management services agreement with Electronics Boutique plc that is based on sales volume and is unrelated to profit
margins. Further, Electronics Boutique Holdings does not believe that the increased level of competition in the U.K. market will have any impact on the U.S. market.
Historically, prices in the U.K. market have been higher than in other markets and are now adjusting to levels more competitive with the U.S. and other markets. The
company indicated that it is not currently experiencing any extraordinary pricing pressure. In addition, any increase in sales at Electronics Boutique plc as a result of
the increase in competitive conditions could result in added revenue to Electronics Boutique Holdings due to the nature of its management agreement.
Electronics Boutique is one of the leading specialty retailers of video and computer games and also sells video game hardware, PC productivity software and
accessories. The company currently operates 595 stores in 46 states, Puerto Rico, Canada, Australia and South Korea, primarily under the names Electronics
Boutique and Stop 'N Save Software. The company has also established a separate e-commerce subsidiary, EBWorld.com, Inc.
This press release may be deemed to contain ''forward-looking statements.'' Electronics Boutique (''EB'') is including this statement for the express purpose of
availing itself of the protections of the safe harbor provided by the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking
statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not
limited to, EB's dependence on the continued introduction of new and enhanced video games and PC hardware and software; the cyclical nature of the video game
market; the rapid technological changes which occur in the video game and PC industry; EB's ability to open and operate new stores on a profitable basis; the
intensely competitive nature of the electronic game industry and its rapid changes in consumer preferences and frequent new product introductions; the seasonal
nature of the retail industry; EB's dependence on its suppliers for products; risks inherent to conducting international operations; and consumer spending patterns and
prevailing economic conditions. Please refer to Electronics Boutique's Annual Report on Form 10-K on file with the SEC for a more detailed discussion of these and
other risks that could cause results to differ materially.
SOURCE: Electronics Boutique Holdings Corp.
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