Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Louis Riley who wrote (1205)	4/30/1998 10:02:00 AM
From: udrider	Respond to of 3203

Disappointed that today's company news and market environment failed to generate a wave of squeeze. Out with pain to avoid giving back money I made last week. Good luck to longs or shorts, but not both!

To: Louis Riley who wrote (1205)	4/30/1998 10:16:00 AM
From: Deliveryman	Read Replies (1) \| Respond to of 3203

Louis How can you sate that the site is ready for business and then say that you didn't get to see that it was.... Probably.... Probably.... Could be because of lots of reasons....

To: Louis Riley who wrote (1205)	4/30/1998 10:54:00 AM
From: Ron Sirch	Respond to of 3203

Louis, hope you will continue to post through the flack. I believe you have a good one here. $100?? I don't know but it's clear to me that we will be going higher that the thirties. This company is ready to roar IMO. They are delivering as promised and the infrastructure build-out looks to be outstanding. Infrastructure announcements is what to look for. To describe them as empty is naive at best. Real Audio for example gives K-Tel Express the ability to allow "the public to search through and LISTEN TO samples from K-Tel's owned-music master catalogue." That's how to sell recordings, IMO. By the way, Real Audio is a leading provider of audio software services and probably THE leading provider. They will be an excellent partner, IMO. Back to the $100 question. I'll just post Louis Riley's analysis of April 15 and say it bears looking at: 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: Louis Riley who wrote (1205)	4/30/1998 12:33:00 PM
From: Marco Polo	Respond to of 3203

Mr. Riley, I hate to tell you this but your recommendation here sounds like a bad joke. You challenge those negative on KTEL to name a successful internet company trading for as low a multiple as KTEL... how do you define "successful internet company"? Does that include KTEL, a company that has never made one transaction over the internet? I might have expected a squeeze today with the RealNetworks news, but it just hasn't materialized. Anyone who actually had confidence in the company's future is gone. You yourself, the last one remaining who claims to think KTEL is a long-term winner, posts things like "this is the shorts' last chance to cover in the 30s" rather than "this is the last chance for investors to buy in the 30s". It just shows that even you know the only play for longs is the short squeeze. And it just doesn't seem it will happen, does it? I am left with no reason to believe this isn't KTEL's last hurrah. Look for $3-$6 post-split with the larger float.

To: Louis Riley who wrote (1205)	4/30/1998 1:40:00 PM
From: Louis Riley	Read Replies (2) \| Respond to of 3203

Oh yeah, one more thing: Earnings will be released Tuesday after the close. That's a good week and a half earlier than the March Q was reported last year.