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Technology Stocks : XO Group Inc
XOXO 34.990.0%Dec 21 4:00 PM EST
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To: Glenn Petersen who wrote (50)3/6/2004 5:35:53 PM
From: Tom Caruthers   of 133
 
Hi Glenn,

From the conference call, it seems to me that KNOT is on the verge of becoming significantly profitable. I think their strategy to provide higher quality merchandise will pay off, though I think they still need to be conscious of the fact that couples are trying to save as much money as possible and KNOT needs to be cost competitive. Increases in local advertising also bodes well as I believe this is where the money really lies. The whole industry is so fragmented that KNOT, unlike any other business in the bridal industry, has the ability to really consolidate things under their roof. I think patience will be rewarded handsomely.

Tom
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