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Technology Stocks : Egghead Computer (EGGS)

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To: Anaxagoras who wrote (5950)1/19/1999 8:49:00 AM
From: Big Dog  Read Replies (2) of 8307
 
Dear Anaxagoras: It seems that whenever we get good news (i.e., ATHM), we get bad news. In today's Wall Street Journal there's a story about ONSL and its strategy to sell new computers at its wholesale cost (i.e., no mark-up).

"Onsale says it is gambling that revenue from advertising on its website, fees for service contracts and leases, plus a nominal handling fee per order, will leave it with a small operating margin. The company says it doesn't expect to make a profit from marking up prices to consumers."

I hope that EGGS doesn't adopt that strategy. Great revenue growth won't mean squat!
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