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

To: Mad2 who wrote (411)	7/19/1999 12:18:00 AM
From: ratherbelong	Read Replies (1) \| Respond to of 779

It looks like you have been very busy doing your research and I commend you for it. The rumors associated with a possible buy out of EB-UK and/or a major buy in and/or the company being taken private, simply tells me that no one really knows anything for sure at this point. What we do know is that several years ago John Steinbrecher was sent over to England with the mission of applying the Electrontics Boutique business model to the then failing Rhino PLC business. The turnaround was nothing short of astounding and the rest is history, with the company now "minting" money and recently swallowing their biggest competitor (Games PLC) whole. We also know that when Electronics Boutique Holding Co was formed (during the reorganization leading up to the IPO) the 66,392,418 shares of EB-UK was not part of the assets of the Holding Co...but rather retained by the predecessor, The Electronics Boutique, Inc. and EB Services Co, LLP (which we all know is Jim Kim and family). EB-UK pays ELBO an ongoing management fee that is tied to certain performance levels. I read in a press release earlier this year that it is estimated that the management fee should add something in the neighborhood of 0.05 cents to ELBO's net earnings this fiscal. Now if your Kim and you own 69% of EB-US (ELBO) and 25% of EB-UK and both companies are growing and prospering...I would think that you might consider buying another 26% of EB-UK and having voting control of both companies. However, this is nothing more then speculation on my part and for all I know nothing will come from these rumors. On the other hand, maybe EB-US (ELBO) decides to take a 26% stake in EB-UK and then with the 25% already owned by Kim you have the same voting control. Who knows? The only thing that is for certain, is that at the current $15.00 per share price of ELBO's shares the company remains undervalued and overlooked. Hopefully, this will change as we get ready for the Sega Dreamcast introduction. Good Luck with your investments, RBL