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Non-Tech : Image Entertainment (DISK) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Fraser who wrote (176)	8/20/1998 12:43:00 PM
From: Augustus Gloop	Read Replies (1) \| Respond to of 379

There are rumors out on this stock. Here is what I have. Image Entertainment (DISK) there are rumors that the company will sign some kind of marketing agreement with Amazon.com (AMZN) that could mean 2-3 points to the upside for DISK.

To: Jim Fraser who wrote (176)	8/21/1998 11:07:00 AM
From: William T. Katz	Read Replies (1) \| Respond to of 379

Some analysis on the news: I'm accumulating. I like the news because the content of the press release fits in very well with my long-term vision of what DISK might become ... see Message 5219705 They picked up an internet e-tailer of DVD/LD at a very good price: $15 million annual revenue with "loyal customer base of 80,000 active buyers" for a $6.5 million price tag. Also we can assume that the annual revenue is growing at a decent pace given all other point samples in internet e-tailers, not to mention the growth of DVD as well. That is a really excellent price that I imagine is partly due to Ken Crane Jr/Sr wanting to get a fast track to a publically traded stock. More importantly, this guarantees DISK (1) an outlet for all their LD sales to that niche and (2) a mechanism for testing how they can be the back-end fully electronic fulfillment means for e-tailers like Amazon.com and other storefronts that try to use distributors. The following quote from the release was good: Greenwald concluded, ''Upon completion of this acquisition, we will be one of the first publicly-traded companies to focus on the growth opportunities of electronic commerce and DVD. By combining the Internet/direct-to-consumer operations of Ken Crane's DVD and laserdisc division with our existing distribution capabilities and our soon to be operational Las Vegas distribution facility, we expect to implement an integrated approach to DVD and laserdisc sales and distribution. We believe this acquisition will allow us to expand our revenues and market share in the DVD market, while continuing to serve our established laserdisc base and maximize profitability for our shareholders.'' Lots of synergy will be created from this vertical integration from online store to distributor. This should be interesting.