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Technology Stocks : BAMM - BOOKs A Million (BAMM) .. the next Amazon.com ????

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To: Nimbus who wrote ()11/28/1998 9:44:00 AM
From: Anthony Marchese  Read Replies (1) of 1196
 
Check out the 3rd quarter BAMM results: Comp store sales DOWN 3.3% and EBITDA DOWN close to 40%! Less than 5% of sales have come from their internet exposure. Will a new web page help? Will cutting prices help? Yes to both but at what cost? Spending money on marketing costs money. Cutting prices lowers margins. This is not a company flush with case and, in fact, has quite a bit of debt. AMZN, for all its faults, generates huge cash flow and has over $350 million in cash. I'm not advocating buying AMZN but at $39, BAMM trades at 2.2 times sales while BKS, a much better company and a true comparison, trades at 0.8 times sales. Also remember that BKS has spent an enormous amount of money on the Internet and is still getting their --- kicked by AMZN. Just a thought...
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