This from a poster on Yahoo: (interesting view on delayed earnings see bold)
I agree ... to only an extent. However, to counter this:
(1) Despite the herd mentality of the american consumer, they have enough independence of thought to
buy from more than one major seller of any product. That's why McDonald's has had its Burger King,
Wendy's and so on ... Coke has its Pepsi ... Sears has had its Penny's and Carson's ... so, if EGGS starts
to get recognition, and they will (the street ignores the fact that their $60Million war-chest of CASH
means a LOT of great advertising, which they've been doing).
There's always three or four big winners. Amazon may not be the #1 of them either. If EGGS shows
excellent sales growth, then they are there already.
It is quite significant that EGGS is choosing to delay reporting until they have comparables reporting at
the same time or close (AMZN, ONSL, AOL, EBAY). This implies they have something nice to report.
Else they'd report early and get it out of the way.
EGGS IS WELL-KNOWN. They don't have analyst coverage for other reasons - the transition to a
pure web play.
(2) Don't forget that EGGS is growing into sales of other items, and in fact they may start to impinge on
AMZN's toes.
With regards to this, my main concern is whether the name "Egghead" can be sufficiently generic for
selling consumer electronics and so on. Well, we'll see... |
