K-Tel (KTEL) Have the cheesy '70s records come to an end? Message Board

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Technology Stocks : K-Tel (KTEL) Have the cheesy '70s records come to an end?

KTEL 0.260

-3.8%

Dec 3 3:48 PM EST

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To: Dennis Lee (Hijacked) who wrote (221)	4/17/1998 9:00:00 PM
From: craig crawford	Read Replies (1) of 3203

<< I will hold my shares until May 1. This is a SIEB in the make. >> Yes Mickey Siebert practically begged people not to buy her stock (saying flatly that there was no reason for the stock price to be going up like that) and it still went up 537% or something like that just because of a small float and some short covering. People ignored her, they knew the shorts were on thin ice. I don't know if KTEL is a sound company or not but when you have a small float and shorts piling in people with $ will drive it up just for the short squeeze alone. They won't even pay attention to the fundamentals, they just care about supply/demand. And I don't think KTEL's fundamentals are bad like some would have you believe. The valuation is not extreme compared to other established internet music distributors like NTKI or CDNW, it's a small fraction. KTEL has also shown profitability in the past. If they continuously issued shares all the time to support the business or lost money for the life of the company I could see how they wouldn't be worth betting on. Management can't be totally inept if they earn profits. If they aren't totally inept they obviously can be competent enough to design a website and advertise to get people to come to it. They probably have a mailing list so large of past customers that all they have to do is market to their existing customer base at first. Just add in the website to the literature that they send out and their fans will instantly go to their website to check out all their titles, causing plenty of hits. I don't know if KTEL plans on charging for advertising on their site when they get lots of page views. Oh, and one other thing. Some people are claiming that they just hatched this plan up because they saw the internets going crazy and they wanted in on it. I don't think so, the CEO said on CNBC they have been planning this for a year. Unless he is a crook (anything is possible) he will have to answer to that claim he made on TV if it was a lie. I don't think they could make an announcement about putting a web site up with 250,000 titles all ready to go and just throw it together in a couple weeks. I'm sure they have been planning it for a while now. At least I hope so. If on May 1 we see some crummy half-baked website that doesn't look professional people will dump in a hurry.

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