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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jenna who wrote (19269)11/29/1998 8:23:00 PM
From: brent gephart  Read Replies (1) of 120523
 
ELBO. This weeks Internet play. Please read and decide for yourself.

ELBO, Electronic Boutique. Two thinks that need to be considered. First, ELBO is brick and mortar and is growing fast and very profitable, p/e of 9 on this years earnings and it's a $14 stock. Second, the brick and mortar is EXCELLENT ADVERTISING for ebworld.com ELBO's web site. Their are over 500 stores in MAJOR malls and that is the best advertising you can get. The simplest way for ELBO to do advertising is just put up signs in their stores saying, "Hey look were on the web". In September they had 800,000 hits on their site and I'm sure the numbers have gone up since.

I have followed EGGS, COOL and recently found ELBO myself. It was so obvious it was off my radar screen until recently. But, now it's on there in a big way. This stock has everything COOL wants and everything EGGS wanted. COOL wants exposure ELBO already has it without increasing their advertising budget. EGGS wanted profitable mall stores and when that did not work went to the net where they are still not profitable, however, ELBO is very profitable at both. ELBO is looking at over 400 million in revenue this year, 33% growth year to year, 7 percent internal growth. ELBO already has the infrastructure in place for drop ship distribution so they don't have to spend money setting it up. The only cost for ELBO's web site is administration. The Internet site and the stores cover all the possible markets for ELBO. This company is the best of both worlds. Therefore the name EBWORLD.

The DD on this company is worth the effort.

Brent
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