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Technology Stocks : Egghead Computer (EGGS)

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To: Dorine Essey who wrote (6212)1/26/1999 6:19:00 PM
From: bullw   of 8307
 
Thanks for the report.

I was disappointed that revenue was not higher given the hype about the Christmas e-commerce numbers overall. Also hoping margins would hold or grow +10%. Considering selling some trying to buyback lower or just move on.

However, it is great to see revenue % and customer base continue to grow. Orban has made changes and has a good reputation. He said the losses would continue for the next few quarters. It's hard to figure when the street will begin to smell a clear corner has been turned on the road to profitability.

About e-commerce, it has been said the perfect company is one which would give away dollars for 95cents, everyone buys in saying well they'll make it up on volume and customer growth. Isn't this kinda what Amzn and Onsl are doing?

This is not going to happen with eggs. It's a real co., has cash on hand, and can expand into new areas (hopefully will soon).

Sometime in the near future a company has to start making real PROFIT selling goods and services ONLY on the internet. So far the Yahoos, Aols, even Ciscos are simply providing technology and connections within an information retrieving system.

Eggs can make positive earnings selling real products as soon as any company out there. Do we have the patience to stay the course?

EMC according to CNBC today had a 21,000% return over the past decade.
A short time ago that was one very speculative co.....anyone gonna sit on eggs for a few years?

Take care and remember: one never knows how speculators will read an internet company's report. Sometimes Revenue growth and customers are all it takes--remember the dollars?

Bull

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