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Strategies & Market Trends : A@P, Can we trust him, -- Ignore unavailable to you. Want to Upgrade?

To: ztect who wrote (80)	6/10/1999 7:14:00 PM
From: Mama Bear	Read Replies (2) \| Respond to of 381

It's funny how some folks never tire of the taste of sour grapes. Barb

To: ztect who wrote (80)	6/12/1999 8:44:00 PM
From: .com	Respond to of 381

foolwest.fool.com WHERE TO FROM HERE? Key West Securities, a market maker, issued a bearish take on K-tel a few days into the rise. "When the hysteria dies down and the volume dries up, the stock should settle to a more appropriate range between $5 and $7," the firm's chief analyst Anthony Elgindy noted. "This could happen very quickly based on earnings and book value." The next day, after apparently taking into consideration how ill-placed that last remark was in light of the market valuations of the profitless CD-Now and N2K, Elgindy retraced his steps and retracted his words. K-Tel was now the "best value" among its competitors, and, despite the sector being overbought, Key West issued a "buy" rating with a $30-$50 price target. I did mention Key West was a market maker, right? Well, swaying one analyst and a legion of new believers has been pretty easy. The bigger question is can the consumer be swayed? K-tel has a brand name, but the association of that name with a cutting edge Internet vendor is questionable -- and the company is behind the competition in Web presence. Yet K-tel is taking a different if not more traditional path to winning over site surfers. Whereas N2K and CD-Now are quick to enter into million dollar marketing deals with popular Web search engines, K-tel will focus primarily on its existing customer database -- the core is not only mainstream, it is also international. This is an interesting move since it will be targeting K-tel patrons who believed in the company before believing in K-tel was considered cool. Along the way, the company's profitable non-online business, which earned $0.40 a share over the first half of fiscal 1998, may also cloud investors into thinking that the company is turning a profit on e-tail. If the perception that K-tel should trade at a similar price-to-sales multiple as CD-Now and N2K gets around, the stock could easily continue to rocket forward.