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Technology Stocks : Electronics Boutique (ELBO) -- Ignore unavailable to you. Want to Upgrade?

To: joel3 who wrote (366)	6/25/1999 10:08:00 AM
From: Top Jim	Read Replies (1) \| Respond to of 779

Joel, A few thoughts from a former industry person. 80%+ of a title's sales occur within 4 weeks of launch. The curve is not unlike a new movie release. Bad movies stop cold after a few weeks, blockbusters are more gradual but the lines are always the longest in the first week. Two of ELBO's greatest strengths are its relationships with the game manus and their distribution channel. ELBO consistently puts its new games on the shelves a week before anyone else. Gamers know this and that's where they get their loyal following. Their web site preorder capability makes it that much better. ELBO has other strengths too such as knowledgeable employees, brand strength, ecommerce site, etc but to avid gamers availability is everything. Comp USA will compete with Target, Macy's, Walmart, and all those other dime store retailers. Also, new games are not discounted. Retailers will always sell through their inventory allotment. No incentive to leave money on the table. As for ELBO's growth, their EPS growth comes in 4 areas. SSS, new stores, ecommerce, and new ventures. ELBO is strong in all 4 areas. They are executing well IMHO and managing their cash flow brilliantly. Industry growth looks good with the next generation products rolling out over the next 4-18 months. With the stock trading at 1/2 fwd P/E I would be considered it a strong value play. As with any investment, I would recommend that you read their annual report and talk to investor relations before committing funds. Good investing, TJ

To: joel3 who wrote (366)	6/26/1999 1:39:00 AM
From: ratherbelong	Read Replies (2) \| Respond to of 779

Joel, regarding your question... <Finally, a general question for the thread. Why invest in this company? Where is the growth? Since I asked first, can I wait for your response before giving mine? :-)> ============================================ Revenue has risen year over year as follows: 1997 $340M 1998 $454M 1999 $574M 2000 $750M (projected) 2001 $1B (projected) EPS have risen year over year as follows: 1997 0.50 cents 1998 0.74 cents 1999 $1.01 (proforma basis) $1.11 (based on corporate taxes vs sub chapter S) 2000 $1.23 projected (three analyst) 2001 $1.54 projected (two analyst) Based on year 2000 projections of $1.23 and the stock currently selling in a trading range of from $15.00 to $17.00 a share...ELBO (imho) is tremendously undervalued and has fantastic upside potential. Here's the link. ======================================= marketguide.com (type in ELBO, then click on highlights) ======================================= Good luck to you in your investments RBL