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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 (245)	4/18/1998 11:40:00 PM
From: Peter Goss	Respond to of 3203

DMAN, You seem very confident that something will be wrong with their website. How do you KNOW that they dont know anything about the internet? They have invested some substantial money (more than one million) for something that will begin to pay off in mid '98 ( I am paraphrasing from the Feb 10Q). The CEO said they have spent one year developing it - he could be lying but don't know why he would. <<Do you really believe that KTEL is the same as CDNW? >> It isn't the same yet because KTEL is at 1x revs and CDNW is at 20+ times revs. The market is saying maybe it is the same. Relative valuation is sometimes dangerous, I know, but . . . Maybe in the past year the little boring record reseller has come up with some new cool way to sell music on the Internet. Have you figured that into your analysis? Neither long or short - just thinking. Peter

To: Deliveryman who wrote (245)	4/18/1998 11:44:00 PM
From: StaggerLee	Read Replies (1) \| Respond to of 3203

>>What if its late? Incomplete? What if it crashes every day for the first week?<< This is the least of their worries. The technical end is easy. From a technical perspective, any reputable HTML programming firm (and there are many of them) can duplicate even YHOO's site in a matter of weeks. KTEL's initial site will be a no brainer. The question is about generating traffic. Fortunately for KTEL, they'll be starting from zero so the first year will show nothing but hyper growth. And every press release that mentions this will send the stock higher. And they've said they're not going to rely on web advertising (which is a great idea since it doesn't work), so you can still short YHOO while you're long KTEL!