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Non-Tech : KIDE a good play to capitalize on Pokemon craze -- Ignore unavailable to you. Want to Upgrade?

To: Steven Messina,L.M.T. who wrote (357)	8/23/1999 6:34:00 PM
From: out_of_the_loop	Read Replies (1) \| Respond to of 1239

Here are the "highlights" from today's vcall interview with the Emerald analyst. ****** Shorts don't appreciate fundamentals the analyst said. Japanese experiences show that Pokemon has momentum staying power of at least several years. Emerald has a bare bones base model that they have used to try to get a handle on what the stock price should be. They used a worse case scenario of earnings increasing at 300%.and think that at a P:E of 30 it should trade at 99. I had a hard time understanding the guy since every time he would say something important (i.e., specific numbers), he would mumble. I listened several times to this part and that seem to jibe with my own figures (although I personally used a more conservative P:E). He stated that the company had incredible margins with very little increased overhead to deal with the increase in licenses. They mentioned the covenants in some contracts that mgmnt take cash off the top of pretax income, but said that even with those, the net margins were very high. The 4Kids-Nintendo contract runs at least 4, up to about 7, years. The movie will be "favorable" to the company but no other details were given. There is halloween coming around the bend, etc.,etc. International (read"European") rollout will start within months - will start with England. He said the biggest misunderstanding is regarding the valuation of the stock. For every dollar in the stock, the market cap goes up $7 million. He said a 30 P:E was justified with yearly earnings very conservatively projected at $3.19 per share. ***** I really did not learn much from this interview - but it did indeed take place today. Thanks, Steve, for going back and checking that out to verify.