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Non-Tech : CDWI CD Warehouse -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (48)	5/3/1998 7:40:00 PM
From: Art	Read Replies (1) \| Respond to of 550

There is no question that selling used CD's over the net would be a great move. And given the small float, the stock could be boosted into the stratosphere if the company announced they were ready to do it. And, clearly, they have announced that they intend to move that direction. But conversations I've had with the company indicate that they are no where near ready to introduce the program yet. They are still relatively early on the curve they need to travel to modify their exisiting software to interface with the net. The word they gave me was "we want to make sure that we do it right when we do it." A noble goal (and one that will enhance results). But given the current mania surrounding internet related stocks, I would be hard pressed to object to seeing some of that come CDWI's way TODAY... while the fires are burning as hot as they are. KTEL has been over boosted by the frenzy over internet commerce. Stock price should reflect the potential of any company. KTEL will never see an upswing in sales anywhere near the upswing the price of it's stock has seen. The bubble will burst. And when it does, it will not be pretty. But CDWI will benefit dramatically from e-commerce. No question, eventually they will end up on the net. Unlike Amazon.com, CDWI needs stores to take in product (which will eventually be sold on the net). So, I see them continuing to expand traditional channels, using the net as and additional means of distribution. (Though, as I think about it, they could set up a web-site to "buy" the hottest titles too...) The real question is which is cheaper per unit? Pure net, traditional retail, or a hybrid of the two... ? These are questions I cannot answer. (The addition of mailing costs would probably go a long way toward killing pure e-commerce in used CD's) But that it mere speculation. By the time CDWI implements their plan, the euphoria surrounding internet commerce (in the stock market) may have subsided. But even if that is the case, CDWI should be able to book real benefit from this new distribution channel. Thus, the stock should rise. If e-commerce is implemented as they continue to make huge strides in adding new stores, the stock should perform very well. Still, as a stockholder, it is difficult not to want to use the mania to feed the stock price. In the end, the stock should benefit, mania or not, from e-commerce. Art