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Technology Stocks : Electronics Boutique (ELBO)

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To: mozek who wrote (127)12/12/1998 7:33:00 PM
From: Victor Lazlo  Read Replies (1) of 779
 
<< I'm not short, but I'd venture a guess. Looking around the web site, I don't see any high price, high margin products. >>

Have you checked AMZN's site for any high margin products? They have none. None. And the market cap is 13.5 billion dollars. Their revenue is about the same as ELBO's, only ELBO makes money, and has been doing so for years. ELBO's mkt cap is $310 million.

<< If esales actually cut into store sales, then what? >>

The esales cut into the esales of other online game sellers. It is important to make the distinction.

<< They've got a large physical infrastructure to support. Before investing, I'd want to find out how expensive that is, how much they're actually making on esales, how fast each is growing/shrinking.>>

They're probably barely breaking even on esales, if that. They make good $ from the stores, and have been doing so for many years. Review of co sec filings would show you this.

Victor
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