BAMM - BOOKs A Million (BAMM) .. the next Amazon.com ???? Message Board

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Technology Stocks : BAMM - BOOKs A Million (BAMM) .. the next Amazon.com ????

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To: 45bday who wrote (797)	3/12/1999 8:14:00 PM
From: Wayners	Read Replies (2) of 1196

It can go either way with the news. I personally think it comes down mostly to sales, forward looking statements like alliances, partners, advertising and marketing strategies etc. The only data we have is with regards to the first 5 weeks of the quarter and the sales during that period which showed flat comparable store sales in the heart of the Christmas shopping season versus last year's Christmas shopping season. Sales were up overall but that was because they opened additional stores. BAMM has been blaming previous down comparable store sales on internet book competition. They were glad that the comparable store sales were flat instead of down. On the technical side, for now it looks like the old fake break of the support level at $10. The support level held. The problem is the expectation of a rally is going to fade fast if there isn't some follow through upwards. People are going to say, well the support held, time to rally and then say hey its languishing at $10 1/2, can't get past $11 1/2---that means one thing--if it ain't going up--it must be going down--time to bail. That's how the psychology works. Playing this earnings announcement is pure gambling. The earnings announcement if at all positive, especially sales or web agreements, will toast the shorts because the overwhelming Wall Street consensus is very bearish on BAMM as evidenced by the high short interest. There's a bunch of different rumors out there. The Prodigy deal I have not seen a news release on. A move up in the earnings release date is another. Other ones that large players are accumulating shares in anticipation of an announcement with the same magnitude as the imfamous one back at the end of Nov 98. The fundamental value of BAMM if they don't grow at all is $6.00 book value plus 7 years of flat earnings at about $0.35 a year. If they don't sell a single book on the internet, don't open any new stores, joe Muggs, etc, don't expand into other products, they are worth $8.45. That is not real far down there. Those that point to values of BAMM at $2.50 and that it will return there are wrong because those prices occured during the dramatic market decline that occurred during the global financial crisis from mid Jul. to early Oct. The next support below $10 is the highs set back in mid Jul 98 at around the $7 to $8 levels.

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