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Technology Stocks : Egghead Computer (EGGS)

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To: Estephen who wrote (3985)11/28/1998 1:18:00 PM
From: Anaxagoras  Read Replies (1) of 8307
 
Thanks for the info, Steven.

<<Harmon forecasts 1999 revenue of $195 million (vs. $140 million for 1998), in which case the stock trades at about 1.6 times next year's revenues vs. a multiple of 5 to 10 for other Internet retailers. >>

But other internet retailers get those multiples because of their frantic top line growth rate (and even then it's aggressive). In contrast, if Harmon's forecast is right, then the growth rate for EGGS is only going to be about 39%. Quite nice for most industries, of course, but not for internet-hype types; in brief, it's respectable but it ain't no AMZN.

Anaxagoras
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