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Technology Stocks : FatBrain.com (FATB) Is your head big enough??

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To: Brasco One who wrote (27)3/30/1999 10:15:00 AM
From: Crossy   of 101
 
Donny & all,
today we saw a CLASSIC BEAR TRAP at the opening of FATB. Great story. Ok, it's Price to Sales of 10 right now. But look to Amazon. They got P/S of 30 and have LESS GROWTH potential IMHO. OK they are larger but the tight float of 3 million is another nice short trap.

What I like is the economies of scope play here. Now they have their new name in the bank they will hit airwaves big time with their ad blitz. They will be selling not only "stuff for Eggheads" (computer / IT related) but generally books with a corporate appeal. They also landed important partnerships already and there may be more to follow up. (Gov't ?? Aol ? Cnet? Lycos ? Yahoo ? etc..)

I read somewhere (maybe at Yahoo thread) that CEO stated 1st quarter being usually the WEAKEST for the company because of the biz to biz scope of focus. Well this time they even grew from Q4 to Q1 so the growth over the next 3 quarters could be astonishing. I personally count on doubling of revenues this year over last. Maybe they could triple sales given the fact that they are now a NASDAQ company and successfully IPOd last year - tapping the capital markets.

I got in at $14 long ago and think about selling at $35-40 level. We already passed $30 now I'm writing these lines..

Oh, not to forget, usually I don'T curse shorters. But this time I cannot resist some fingerpointing. IMHO, those who still haven't learnt to stay away from shorting internet stocks just DESERVE to get their fingers burnt and their butts kicked..

best rgards
CROSSY
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