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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Road Walker who wrote (104579)6/19/2000 10:57:00 PM
From: The Duke of URL©  Read Replies (1) of 186894
 
From the Lip Gun Department:

"eMachines is a proxy for the US retail PC market"

I don't wish to seem indelicate here, but emachines seems more to be a proxy for a business plan common among a bunch of new dot coms:

OUR MOTTO: "We Lose a Little on Each Sale, But We Make it Up on the Volume"

In attempting to blow about $200,000,000 to develop a Franchise, the cash ends up being spent on name recognition, ie no distinguishable product.

This works as long as there is fresh meat in the investor community and among banks who are willing to lend in the hopes that their source of repayment will not be from profits, but from their new investment/brokerage division.

Companies like this, only cause disruption in the market and hurt established companies margins until somebody goes out of business.

**I really have not studied EEEE, it could be that they have funded everything out of cash flow, but a quick look at their balance sheet says not.
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