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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?


To: Tae Spam Kim who wrote (349)3/11/1998 11:34:00 AM
From: taxikid  Respond to of 8307
 
tae you are obviously comparing apples with oranges.
or eggs with something else.
this will turn around on you... especially if a certain microsofties has sold shares into this strength...
and um.. that 2 million a week makes for a 100 million in sales..
lets assume that there will be as much interest in eggs in july and august when the world is on vacation.
lets also discuss the merits of how much the $9 million in advertising will affect the bottom line.
if eggs does $100 million in gross sales.
and their margin is 20% they get $20 million-$9 million.
ads
that leaves them with $11 million to pay salaries, programmers, systems analysts, webmasters, assuming they run their own isp...
and are connected with a t3, their costs are several thousand per month, then we must discuss the people on the payroll to watch the system 24 hours, 7 days a week, lets say that 168 hour week costs them $100 an hour $16,800x x 52 weeks(you do the math)
umm, then there are those strategic partnerships....
how much will they cost eggs?
then we must discuss creditors, and those co-op ads, that eggs may hafta make good on, and then last but not least all of the ill will from those customers that bought bad, defective or broken goods from eggs at full retail.
and the people who got downsized.. none of those people would ever flame eggs over the net, or mess with eggs by hacking into a site?
the potential evils far outweigh the positives here.
I have covered and have no position, but feel only a fool would go long eggs at ths juncture.
good luck, and here's to the greater fool theory...
ohh and another thing let's talk about that book value valuation..
how much of that cash went away and how much is left of the book after the store closures...
taxi
lets also discuss the cost