HG--
The day EGRP hit $10 intraday a couple of months ago, I was ready to buy it if it went lower. It didn't, I wouldn't pay more, and it was in the 20's within days. Story of my life.
I don't think any of their operations are profitable at the moment. The U.S. operations were, but with the ad blitz they aren't expected to be again until the year 2000 or later. So the effect on YHOO of the success of that ad blitz will gradually become known quarter by quarter. I would recommend that YHOO watchers and investors pay close attention to EGRP's quarterly announcement about new customer numbers, ad expenses per new customer, stuff like that.
(OT -- Incidentally, I was invited a few months to one of those two-hour focus groups where a market research facilitator guides a discussion while the company's marketing people watch, either behind one-way mirrors or on video tape (they didn't say, but I've seen it done both ways). Anyway, it turned out the sponsor was E-Trade; the research was about their new site design and some ad slogans they were considering. I came away thinking that their site design ideas were really good -- and I like the new site, too -- but that the ideas were kind of the same old thing. I was one of several members of the group who were heavy E-Trade users, and all of us were basically pretty happy with it. So it's another case of like the company, skeptical about the business plan and the stock. Maybe I should just discard all this valuation stuff sometime and invest solely because I like the company. Just can't bring myself to do it.)
MAD DOG |
