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

To: zax who wrote (2413)	8/5/1998 9:01:00 PM
From: Rommy B.	Read Replies (1) \| Respond to of 8307

I like EGGS at these prices and that's why I'm long. EGGS did get a good beating because it climbed 300% in less than two weeks time, but at these low prices we may get to see a nice upwards reversal when the market once again becomes friendlier to the internet sector. As a company, EGGS seems to be doing pretty well on its initial internet ventures, so even if it's not the sole leader in its market, as long as its internet business goes in the right direction we should see it climb back up with all the others. We are very close to EGGS' initial base and that is the down side. The upswing is re-visiting the 20's. From my observation, stocks that go up exponentially almost always correct themselves, and they usually get very close to the base price. The big difference between the lemons and the ones with real potential comes after the correction: Companies that are all around weak, like KTEL, continue to see their prices drop. But companies with a brighter future, like SEEK for example, see their prices usually pick up and rebounds (until the next internet attack...) Many analysts tanked KTEL because its valuation far exceeded its actual business worth and potential (even KTEL CEO said his stock was over-valued at 11! He sold many of his shares when KTEL was riding up high). That's why I don't see EGGS as a second KTEL. EGGS may have unfortunately gotten a bad rap because of Riley (which caused all the commotion), but EGGS' business potential is quite strong. Analysts said they were afraid to recomend it above 20 (can't blame them, I shorted EGGS at those high levels), but at 11-12, it's a different story. All thoughts and feedback will, as always, be welcomed. Rommy