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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (7274)	4/18/1998 8:46:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 18691

KTEL also has the advantage of putting its Web address into zillions of print and TV ads. Web traffic in general is up partly because all the big companies are including URL's in their ads and TV shows. CDNW and NTKI can't afford to reach that many eyeballs.

To: Mama Bear who wrote (7274)	4/18/1998 3:06:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 18691

Barb, I think EGGS may be causing you to give KTEL a bit too much credit. My understanding is that their Web site isn't even supposed to be up until May 1, so they have never sold a thing over the Web before. As far as I know (though I haven't checked this), they do not currently earn revenue from the broad selection of music that they plan to offer. Their existing "successful distribution model", IMO, hardly suggests that this niche music purveyor can compete with those already online. Have they hired a new senior exec with an "e-tailing" track record? Does anyone really think that the KTEL brand name is of any real value in selling a full line of mainstream music? Eggs, OTOH, was selling over the Web at a pace of $1 mil/week when they announced their strategy shift. They had, a few months earlier, acquired an existing computer hardware e-tailer which had management experienced in online commerce. They had already been selling online the same product line that they sold in their stores and they have a brand name that is known for software retailing (even if not respected by investors). Not saying that KTEL couldn't go higher - who knows these days? - but the whole thing certainly is amusing. Regards, Bob

To: Mama Bear who wrote (7274)	4/18/1998 3:44:00 PM
From: Investor-ex!	Read Replies (2) \| Respond to of 18691

Barbara J, I wouldn't speculate on K-Tel long OR short, not without someway to hedge. Might as well go to Vegas. What gets me is, one day, they're a 3rd tier mail-order record distributor and the next, the market decides they're some hot internet stock worth a 500% increase. If this isn't some sort of sign, I don't know what is. But if you believe the current momentum + hype + inevitable squeeze can move this stock up to anything near AMZN levels, go for it -- it probably will. Hopefully, you will have cashed out before it and/or this whole internet thing collapses. Meanwhile, K-Tel International's "world headquarters" are just a few blocks from here. I think I'll do a drive-by and see if there is anything going on.