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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: taxikid who wrote (639)	5/7/1998 12:08:00 AM
From: Timothy R. West	Read Replies (2) \| Respond to of 8307

What do you want in a stock? 1. Able management. 2. Great customer relations. 3. Strong Cash Position. 4. Strong brand recognition. I suggest that EGGS has it all. ABLE MANAGEMENT: EGGS is run by the George Orband, the founder of Ross Stores. He has taken bold steps to close its bricks and mortar stores and focus instead on the power and the future of the internet. Ernst & Young did a report with the National Retail Association that shows there is a high degree of correlation between what succeeds in retailing and what succeeds in e-tailing. Egghead may have stumbled when faced with Compusa's competition, but now Compusa looks foolish for not moving over to the internet. SUPPLIER RELATIONSHIPS: Egghead has superior relationships with suppliers which ensures a continuous flow of offerings to the consumer. With EGGS' strong financial position, any supplier would be HAPPY to deal with Egghead. STRONG FINANCIAL POSITION: Egghead has a superior cash position of 67 million. Egghead's inventory requirements have PLUNGED as many products are sold on CONSIGNMENT!!!! Egghead has all of its store closing expenses behind them. We'll have to let the numbers speak for themselves and the numbers speak well for buying EGGS here, especially when you COMPARE Egghead to ONSALE... ONSL is the cleanest comparison there is. STRONG BRAND RECOGNITION: The internet is mostly surfed by tech heads which means strong demand for computer accessories and peripheral sales. More than 95% of Egghead shoppers had e-mail accounts, so contacting customers is cheap, quick and easy. Egghead is a well-known name which is VALUABLE. (Just look at K-Tel). There are more than 100,000 registered bidders and growing daily. Page views are growing strongly too. INVESTOR CONFUSION: EGGS doesn't sell much software on the internet, so most people are missing the boat because they think Egghead only sells software. EGGS makes an average of 10%-15% on the goods it sells over the internet. EGGS is trying to keep its cost of acquiring a bidder to under $20. (Keep in mind most e-brokers spend north of $100 to acquire an account). NO WALL STREET COVERAGE: I hope at least ONE Wall Street firm picks up coverage. I am trying to get NationsBanc Montgomery, Wheat First Union and Lehman to pick up coverage, but since EGGS is in such SOLID financial shape, there is no INCENTIVE for a brokerage house to pick up coverage. And why the newspapers don't even print the earnings release I'll never know. Peace and good fortune to us all. Tim West