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Technology Stocks : K-Tel (KTEL) Have the cheesy '70s records come to an end? -- Ignore unavailable to you. Want to Upgrade?


To: Michael Tedder who wrote (28)4/14/1998 11:15:00 PM
From: Mama Bear  Read Replies (1) | Respond to of 3203
 
What do you mean "exclusive right to sell"? If you're not familiar with the other companies already offering music CDs on the 'net, tsk tsk. There is no such thing as an "exclusive right to sell" CDs on the 'net, unless you mean the junk compilation records that KTEL has been churning out for years.

Barb



To: Michael Tedder who wrote (28)4/15/1998 1:31:00 AM
From: Louis Riley  Read Replies (1) | Respond to of 3203
 
Why KTEL Could Go Higher Than $100

Publicly Traded Music Etail Names:

CDNW as of 4/9/98 close:

TTM P/S: 24X
TTM Sales: $17.4MM
Market Cap: $552MM
1 Year Sales Growth: 176%

NTKI as of 4/9/98 close:

TTM P/S: 13X
TTM Sales: $11.3MM
Market Cap: $369MM
1 Year Sales Growth: 580%

KTEL as of today's close:

TTM P/S: .91X
TTM Sales: $91MM
Market Cap: $83MM
1 Year Sales Growth: 5%

With ''K-tel Express'' to feature more than 250,000 music titles (the same amount CDNW claims to offer), which of these three companies looks to have the most room for significant sales growth and multiple expansion?

Also, this is not like INTU going on the web, where they are so huge that web etail revenues will be fairly inconsequential for some time. This is a small company that could ramp growth explosively.

A Price/Sales multiple expansion to a mere 5X Trailing Twelve Months Sales would give you a $119 stock.

Louis Riley
Host of "Louis Riley's Think Tank" message board
sitn.com



To: Michael Tedder who wrote (28)4/15/1998 6:54:00 AM
From: P.Prazeres  Respond to of 3203
 
Michael,

1. Putting all your eggs in this basket is suicidal.
2. Their records aren't anything new and the music on them are not exclusive to them!
3. They aren't the only ones to sell music on the net.
4. Technically, when a stock goes up like it has in the past two days, it may go even higher but eventually it comes down just as fast if not faster.
5. I am waiting for it to break to short it.

Good luck!
Paulo