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Technology Stocks : K-Tel (KTEL) Have the cheesy '70s records come to an end? -- Ignore unavailable to you. Want to Upgrade?

To: Rajiv who wrote (2630)	11/12/1998 8:24:00 PM
From: Tom Hua	Respond to of 3203

Rajiv, Shareholders' equity was $3.8 MM as of 6/30. With losses of $3 MM last quarter, that pretty much wipes out all shareholders'equity in the company. On the plus side, KTEL stock will never trade below its zero book value. Playboy.com has 60 million pageviews per month. CDNW has exclusive agreement with YHOO which has 144 MM pageviews per day, or 60 MM pageviews every 10 hours. NTKI and CDNW each has hundreds of employees running their online operations. Ktel Express has 4 to 5 people. Talk about hype. Regards, Tom

To: Rajiv who wrote (2630)	11/12/1998 8:50:00 PM
From: Tom Hua	Respond to of 3203

Rajiv, I randomly selected a few albums and compare prices between Ktel and CDNW. CDNW prices are 10-30% lower!!. Plus at CDNW, you can listen to the songs before deciding to buy, read the reviews etc.. At Ktel Express, nothing, no add-ons to offer. No wonder Ktel Express has not generated any meaningful revenues since the May 1 launch, and it probably never will. I was thinking of covering my shorts in the low teens, but I've changed my mind. I'll keep at least half for single digits. Regards, Tom

To: Rajiv who wrote (2630)	11/12/1998 9:46:00 PM
From: Rajiv	Read Replies (1) \| Respond to of 3203

The 1Q results clearly indicates that KTEL's existing core business is falling apart. I am really curious - KTEL supposedly markets and distributes consumer entertainment and convenience products through retail stores and by direct response marketing. In the SEC filings, I noticed that KTEL has always had a huge accounts receivable (more than 15 million). This must be some unique business model which is beyond my comprehension ! The only problem with my short position is KTEL happens to have a .com webpage. Regards. Rajiv