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

To: Frederick Langford who wrote (3438)	11/12/1998 9:40:00 AM
From: James H. Irwin	Read Replies (1) \| Respond to of 8307

Needham & Co. this AM announced in their morning comments: The "Yahoo!Auctions powered by ONSL" consumer to consumer auction site has been operational for about two months now, and in that time total listings on the site have more than doubled from just under 30k at launch to about 60k now. Management believes that new bidders are registering for the services at an even faster rate than new listings are coming online Consistent with our comments after the Company's 3Q98 conference call, we have raised our revenue estimates and trimmed near term gross margins to bring our model in line with the results of that quarter. As expected near term earnings decline slightly while our quarter earnings have increased. We still expect the Company to reach break-even in 3Q99. ONSL shares currently trade at just 1.2 times our 1999 revenue estimate of $352.9 million vs. our eCommerce group average of 5.5 times 1999 revenue. We see no reason why the shares of ONSL shouldn't trade at 2.0 times 1999 revenue = target price of $37. Reiterate Strong buy. Sounds similar to my analysis last night. For Jocelyn: bonne chance P.S. Please forgive any typpos :-))