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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: Tom Kearney who wrote (1455)5/3/1998 8:42:00 PM
From: marion (Hijacked)  Read Replies (1) | Respond to of 3203
 
<<White Shoes - You don't get it....but you're not alone! It doesn't
matter that their first attempt at a web site sucks. It doesn't matter
that there are 30 other CD sellers. >>

There aren't 30 CD sellers, there are hundreds.

<<There used to be 30 PC vendors, too.
K-tel, like IBM in the PC world, has brand recognition, and they know
how to make a buck.>>

You are comparing K-Tel to IBM? What brand recognition? Most people equate K-Tel with garbage. Why would anyone even go to the site other than stock holders?
Their prices are higher and they don't have any alliances. Say K-Tel to people and they think "Vegomatic".

<<And they are already inovating: custom CDs:
Billboard Alliance. Yes, there guys have been making money on
cheese-whiz - now they got a rocket ship, chinzi, of course, but a
rocket ship to sell. They gonna make a lot a' money, mon!>>

There are already plenty of companies selling custom CDs on the web, and anyone can put "the Billboard Top 100" on their site.
These guy's aren't exactly raking in the dough. Look over their 10K and their 10Q.
They are in debt to their ears. They have negative cash flow. They have already been in bankruptcy in the past. This looks to me like a last ditch effort to raise their stock price so they can "pump and dump".



To: Tom Kearney who wrote (1455)5/3/1998 11:20:00 PM
From: White Shoes  Read Replies (2) | Respond to of 3203
 
Tom, I sort of get it as some of my posts have indicated. In fact, I have equivocated of late, and now think that this is at the very least a debate over valuation, which makes it a debate you can lose in this market...over time reality must set in but for now Ktel can dream up a couple of dozen phantom strategic alliances and keep pumping out the press releases on a weekly basis...made all the more credible by some real growth they may experience due to their new ventures and dog-eared website.

It is very telling though the manipulative method in which they announced the 'rights' to the Billboard chart.

It says things, things that are very scary for the short interest in the short term. It also says they are more serious about promoting the stock than they ought to be.

So I sort of get it about brand recognition and stuff but it's a really lousy brand, and nothing like IBM.

Make mine a Royale With Cheese please...and I am still waiting with credit card in hand for the KTEL Patty Stacker...comes in regular or Tofu for the '90's...

Admit it, you would never buy a KTEL CD on the web. Will anyone? We'll just have to wait and see. Certainly I wouldn't rule out a business success, especially when the day comes when TV becomes more web-like. Suddenly the infomercial just got a lot more powerful.