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

To: Joe Mintz who wrote (1102)	4/27/2000 9:51:00 PM
From: Jay Fisk	Read Replies (2) \| Respond to of 1330

Even if the company does achieve profitability in 2002, it is not as though the sky is the limit from that point. The company is only eking out gross margins of 20%, so unlike a lot of technology companies, it has little operating leverage. EToys may look cheap compared with where it has been, but it is cheap for a reason. It will be a very long time before the company can achieve profitability, and it is going to have a hard time raising additional capital. With their perishable product mix over 60 mil in inventory the next step will be one monster writedown during this quarter... bet on it. I'd avoid this one like the plague.