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Technology Stocks : eToys Inc. (ETYS) -- Ignore unavailable to you. Want to Upgrade?

To: Captain James T. Kirk who wrote (985)	2/3/2000 3:57:00 PM
From: Joe Mintz	Respond to of 1330

The outlook does remain mostly positive for the long-term, but these questions about the valuation of the company are valid. Competition remains acute, in the international markets as well. Short-term is difficult to call, as usual. But volume rose a bit too much today - those who played the upside may end up taking profits in the next week or two. Also, the short interest is still too low. It remains uncertain how quickly a return to 30+ could occur. Still, revenue growth is fantastic, and the company has demonstrated top capabilities in its sphere of business. I think, however, that the market may be more patient in the medium term and keep the price somewhat below the previous high of around 85. Then as signs accumulate that eToys.com dominates as the premier online toy company (and the online toy market is likely to expand dramatically for several reasons), a slower but more stable build can be expected. This sometimes playful stock will mature, to the benefit of those who quietly hold their long positions. I believe the stock can eventually trade at over 200 within the next two to four years. Because of the risks due to severe competition, however, one should keep a watchful eye on its positioning in the market, both domestically and abroad. Good luck, JM