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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (5754)	9/21/1998 10:15:00 AM
From: Obewon	Read Replies (1) \| Respond to of 6318

Not a good move IMO. Assuming a $30 price point, it means the company must sell 333,333 copies of these Virtual Makeover programs at 100% margins to break even. Since margins are only around 30% (I think!), the company must sell a million copies to recoup its investment. Considering I've never heard of the product, I doubt that it currently sells more than 20,000 copies. What are they thinking with this deal? There has to be some sort of catch (losses carried forward, technology, etc.) to make it even close to being worthwhile. OB