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Technology Stocks : eToys Inc. (ETYS)

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To: Shawn M. Downey who wrote (1313)2/8/2001 11:47:19 AM
From: aknahow   of 1330
 
If you told us you were going to Vegas and going to bet $4,000 on red and wanted our comments, what would you expect us to say?

Even so perhaps something can be said. One should realize the bet is no longer that e-toys will return to health and become a robust force to reconed with in the e commerce business. The bet therefore is not that e-toys will go from 1/8 to $5 or higher. The bet is just that the residual value to shareholders is going to be higher than 1/8. Perhaps 1/4, 5/16 or 3/8 ths. Your post implies that you recognize this.

I have a lot of faith in Goldman Sachs. Don't have much faith that the e-toys franchise is worth much, given the markets current perception of e-commerce firms.

I am interested in what went wrong. What does it take to make an online business work? Love the concept of on line shopping. Am blinded by the idea that not having to build retail stores all over the place should provide an advantage over typical retailing that would be insurmontable. But it is not working that way, and I don't understand why. Own no retailers of any kind. Just bewildered by what went wrong. Lament the loss of toysmart and now e-toys.
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