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

To: Timothy R. West who wrote (641)	5/7/1998 3:14:00 AM
From: taxikid	Respond to of 8307

To: +taxikid (639 ) From: +Timothy R. West Thursday, May 7 1998 12:07AM ET Reply # of 641 What do you want in a stock? 1. Able management. Odebatable 2. Great customer relations. Oright, close the doors in local markets.no POP sales 3. Strong Cash Position. Owill soon disappear in fixed costs and advertising no longer subsidized! 4. Strong brand recognition. Oyeah famous for being the weakest and first to go out.(joe six pack does not see this as positive) I suggest that EGGS has it all. OExcept Earnings!!! 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. >>Owhat does he know about internet sales? Ernst & Young did a report with the National Retail Association that shows there is a high degree of correlation between what succeeds in retailing >>Oin my book success in retailing means staying in business!! and what succeeds in e-tailing. Egghead may have stumbled when faced with Compusa's competition, >>OCRUMBLED, not stumbled and may is the month we are in but now Compusa looks foolish for not moving over to the internet. O Foolish enough that i spent $500 there this month, and $2000 @ office max? 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. >>consignment products do not make vendors/suppliers happy, proper showcasing and floor position always do. 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. >>When did onsale close retail stores, firesale goods, and fire employees. i doubt that those employees fired will wanna buy anything in the future from them! 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). >>> look at ktel. yes lets compare. ktel was a smoothly orchestrated short squeeze. 900k shares outstanding, illiquid for any smart short seller to get involved with. it did no go up based on merit.every share short is a future buyer. i don't see all that many egghead shorts left. There are more than 100,000 registered bidders and growing daily. Page views are growing strongly too. >>>OI am a registered bidder @ a few sites.. i haven't bought anything online in a few months. sorry, but "city-folk" like to compare products in hand, that can be returned and/or exchanged when defective or unwanted, etc. who wants to wait even a few days. what about those sub 21 y/o that don't have cc's and want heavy duty computer goods? daddy don't surf the net, and he wouldn't wanna do net shopping! 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. >>i am sure that they will sell plenty of obsolete p-100's! gateway and dell better run for cover! EGGS makes an average of 10%-15% on the goods it sells over the internet. >>>today, maybe and 15% is 50% more than 10% so lets figure it out 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). >>because they have to get investors and software out there, and the advertisment is expensive.. they also get that money back on the first 5 trades.. some of use trade ten or twenty times a day, lest we forget the cross trading and such, where the e-broker keeps 100% of all commissions! 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. >>>solid financial shape? are you insane? i guess intel is in poor shape and that's why they get the coverage! how about small cap stock?maybe that's why? And why the newspapers don't even print the earnings release I'll never know. >>see above Peace and good fortune to us all. >>>smoke another fattie! taxi

To: Timothy R. West who wrote (641)	5/7/1998 10:42:00 AM
From: Oeconomicus	Respond to of 8307

Tim, 1) If you want to focus on management, better to focus on those who built Surplus Direct rather than those who failed at Egghead. 2) As for supplier relationships, software companies and manufacturers with surplus merchandise will sell to anyone with a clean D&B or cash in hand. 3) EGGS has accrued and charged to the P&L much of the cost they said they would incur in the restructuring, but that's not the same as saying they have the expenses behind them. Their cash position looks OK only because they haven't actually paid these expenses yet. 4) If you consider a brand name associated with an admittedly failed business model to be "strong", I will say that it is widely recognized, but whether it is viewed positively is subject to debate. 5) Since EGGS management has said from the first press release that they will need to raise additional capital to fund the shift to the Internet, the Street in fact does have an incentive to court EGGS. I don't think that's the reason for lack of research coverage. If you beleive in management and the concept, go for it. But don't expect to get rich overnight (looking to KTEL as a model is not a good idea). Be patient and if you are right, you will be rewarded eventually. It should go without saying though, that if you are wrong, you won't be rewarded. However, in this market, who knows? Bob