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To: Israel who wrote (3605)12/26/1997 10:35:00 PM
From: Jerry Thibeau  Read Replies (3) | Respond to of 8835
 
Israel, I don't think AMGV is a good buy and I'll share my thoughts with you.

AMGV is no longer selling computers in Wal-Mart stores. They now market thier products through the Wal-Mart web site. Products did not move well in the stores and AMGV was forced to take out dated product back into inventory. AMGV wa forced to liquidate these products at a loss. PC business is a low Margin business for a small company like this. Would you buy a computer from Wal-Mart? I sure wouldn't. I would look at Dell, Gateway or Compaq if I were to order one on-line. Not to metion all of the national retail outlets whos' focus is total computer solutions.

AMGV is hoping (big if?) to generate a 150K in revenues from Wal-Mart on-line this quarter. That works out to be .0163 per share, and that's only revenue. My guess is that margins are lower than 10 points. Now you mention 1,300 other customers, but I don't see any information anywhere about these other 1,300 customers. Who are they and how much revenue do they generate? Reading all of the hype news that AMGV releases, one would think that Wal-Mart is thier only customer. If Wal-Mart ever pulls the plug on this company it will be resting right along side the Titantic (Saw the movie this week, really good flick).

I don't really know much about this company, but from what I've read, I wouldn't SINK (no punn intended) a dime into this one. I am not being critical, I just think that you or anybody else should dig into this one a little bit more before investing any of your hard earned money.

Sorry to blow holes in your ship, but like the Titantic, I don't think this one will be making port anytime soon.

Now perhaps I am whacked, but that's just my opinion.

Good Luck,

JT