Electronics Boutique (ELBO) Message Board

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Technology Stocks : Electronics Boutique (ELBO)

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To: Mad2 who wrote (617)	12/9/1999 12:52:00 AM
From: ratherbelong	Read Replies (1) of 779

Mad2, I can still remember this time last year when ELBO had about 17 institutional share holders with less than 2 million total share held. Now we have 47 institutions holding just under 5 million shares. What a difference a year makes. Also, you've got to hand it to James Kim. He knew he had to pare down his holdings/control of the company in order to make the company more attractive to the public/institutions and to make the shares more fluid. He did it the right way (through the secondary offering) and we as shareholders are already starting to see the benefit. The alternative would have been for Kim to simply methodically over time to sell in the public market place which would have put a constant drag on the share price. I'm sure he could have made more money for himself by continually waiting for the price to rise and unload a bunch driving the price back down and then simply repeat the process, over and over again,...but he chose to go the way of a secondary and I applaud him for it. In fact, I haven't heard whether or not the underwriters took advantage of their option on the additional 500,000 plus shares but if they did, then Mr. Kim's holding of the company would be pared down to something like 59%...which sounds a lot better than the 69% he had previously. As far as the current price of ELBO, I believe we are selling at a tremendous discount to fair value at these levels. I don't see were the market has rewarded the company for last quarters blowout numbers or for the string of six consecutive earnings surprises or for the trememdous potential of ebworld.com or for the successful handling of the secondary. Maybe the seven day positive trend we are currently in, is however, the beginning of some recognition. We shall see. I'm still looking for $30.00 plus by the new year. According to Thomson's I-Watch, institutions are sending out many buy signals each and every day with little to no sell signals. This is very bullish and is contributing to the current positive trend. Good luck to you and all ELBO longs. RBL

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