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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (14935)	4/21/1998 9:38:00 PM
From: Moonray	Read Replies (1) \| Respond to of 22053

K-Tel Shares Rise Sixfold in 2 Weeks on Internet Plan Minneapolis, April 21 (Bloomberg) -- K-tel International Inc. shares increased sixfold in two weeks as investors speculated that the company, which markets rock 'n' roll bands' greatest hits on TV, will boost its sales via the World Wide Web. K-tel has yet to sell its first album over the Internet. The company plans to unveil its Web site May 1. Its stock rose 2 1/4, or 5 percent, to 43 7/8 in trading of 7.2 million shares, more than 10 times its three-month daily average. This evening, it announced a 2-for-1 stock split payable on or about May 8 to shareholders of record May 1. The 30-year-old Minneapolis-based company is best-known for its catalog of 600 albums of music compilations, which it sells through wholesalers and television infomercials. Its shares soared on a plan to sell 250,000 music titles on the Internet. Some analysts said the transition may be difficult. ''I don't think it's so easy to reinvent yourself,'' said analyst Steven Horen of NationsBanc Montgomery Securities, who covers electronic commerce. No analysts from other major brokerage firms cover K-tel, and Horen said he doesn't plan to. Company executives, swamped by calls in recent days, declined to be interviewed. CDnow Inc. is the market leader in Internet music sales, with 1997 revenue of $17.4 million. ''I think CDnow is a much more skilled direct marketer on the Internet,'' said Horen, who rates that stock a ''buy.'' N2K Inc. also sells music on the Internet, and online book retailer Amazon.com Inc. plans to join the fray later in the year. Small investors poured cash into K-tel stock in recent days. The average trade size over the past six trading days was just 553 shares. During that time, more than 44 million shares traded -- indicating that its float of just 1.1 million shares has turned over repeatedly. The shares soared as high as 49 1/2 yesterday, seven times its closing price of 6 5/8 on April 8. Postings on Internet stock market bulletin boards helped whip up investor interest in K-tel, including more than 1,000 just on Yahoo's board. The address for K-tel's Internet sales Web site, still under construction, will be ktel.com . KTEL is not to be confused with COMS. COMS sells "products" KTEL sells "Hits": techstocks.com Have fun, stay away from Alcatraz. o~~~ O