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

To: ratherbelong who wrote (676)	4/4/2000 11:31:00 AM
From: Mad2	Respond to of 779

Hi RBL! I must tell you I work for/run a private comapny and the valuations we use for acquisition and ananlysis are out of sync with what is used in the public space (remember AG's comments of irrational exuberance a few years back.......dow was at 7600 at the time). I think the correct way to view a acquisition is to look at the valuation you (the acquirer can bring to the table), and look at the valuation to be extracted by others in the market place. Given FNCO's current direction I doubt anyone else could have come to the table with what elbo brought.......as you point out elbo has executed extreamly well. I do agree that this acquisition will likely do well for elbo shareholders (actually with the Kims holding most of the cards you can bet they are looking out for the longer term holder). We can speculate till we are blue in the face about what this will mean near and longer term, much of which will depend on how elbo wants to play it.......If I were in they're shoes I'd dust the closets<i/> so to speak and get any bad news or problems up on the table. This needs be done in a fashion where they show acreative earnings to elbo shareholders with a consertative approach to the consolidation so they can beat the financial projections by a country mile when they get to the third and fouth quarter of the year. Assuming elbo will get a generous allotment of Sony's new machine (anyone got any figures here), the planets could line up quite favorably for elbo. Good luck, if I can get in during May-July doldrums at a cheap price I'll be along for the ride come August/Sept. Anyway, I suspect that you, NW and the rest of elbo's longer term contingent should do well come the fall. Best Regards, Mad2

To: ratherbelong who wrote (676)	4/4/2000 11:35:00 AM
From: Professor Dotcomm	Read Replies (2) \| Respond to of 779

I agree with you, ratherbelong. This could be an outstanding acquisition. Nor should FNCO's 39% of sales being in previously played be viewed as a disadvantage. Contrary to the accepted view, PPs have a lot going for them. Since the titles are all well known, the company can select the most popular and leave the rest. Unlike front line games which may (or may not) be hits, with PPs you have 20/20 vision. BTW, did you know that previously played and republished games shipped over 50% in unit terms of the entire video game market? (In dollar terms it was about 27%). Do you hear booksellers downplay paperbacks? Hardly - and it is the same thing.