Barrons NEG mention of KTEL.
Thanks Jeff, and congrats to Louis... Now if he is right he will not only be rich, but famous too...
I subscribe and of course recommend it to all...
interactive.wsj.com
They mention my point of revenues vs earnings. And they say it so much better....
I hope quoting them here for those w/o a subscription is ok...
"the fact that K-Tel is not the most robust company financially. At the end of 1997, book value stood at $5.9 million. The company had $4.3 million in cash. Long-term debt totaled $4 million; the company has borrowed another $2 million on a $6 million line of credit. While K-Tel had sales in the December quarter of $23.2 million, up from $17.1 million a year earlier, profits fell to 11 cents a share, from 47 cents. "
But this is VERY important I think...
"K-Tel has 3.8 million shares outstanding. At the stock's height on Friday, the company's market cap came close to $100 million, up nearly $70 million. Regina Joseph, an analyst with Jupiter Communications in New York, observes that, according to the Recording Industry Association of America, total Internet-based sales of recorded music in 1997 in the U.S. totaled $36.6 million. Now, let's assume that figure will double this year. You get a number about equal to the increase in K-Tel's market cap in a few days of trading last week."
"Well, maybe people who buy music compilations over the telephone late at night feel some loyalty to K-Tel, though we are not entirely sure the name will carry much weight when it comes to buying the Titanic soundtrack, or the next disk from Nine Inch Nails." |
