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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: Deliveryman who wrote (241)	4/18/1998 10:44:00 PM
From: Peter Goss	Read Replies (1) \| Respond to of 3203

I think the comparison to the search engines is not the right one; however, as Louis pointed out in his analysis, the other competitors (CDNW and NTKI) have much smaller revenues and much higher multiples. At a modest internet multiple of 20x revs (gulp!) this could be a 1.8 billion cap. The fact they actually have earnings is probably a disadvantage. (g) I have gotten pounded shorting other internets on valuation. If they really have something new on may 1, it could go much higher. Thinking about a long. Peter

To: Deliveryman who wrote (241)	4/19/1998 8:12:00 PM
From: RealMuLan	Respond to of 3203

Deliveryman: you are so right that KTEL is not YHOO. I think not many people have noticed that Yahoo has just started two very lucrative business: unlimited Internet access nationwide for only $14.95/month; and credit card business at a permanent APR of 9.9%. I think these two new business will make Yahoo tons of money, real money. By comparison, KTEL neither has the technical resource to launch a nationwide Internet service (they have not had a site for their own business yet), nor has the financial resource to launch a credit card business at a very attractive rate. So I think whoever wants to compare Ktel to Yahoo goes a little bit too far. Good luck.