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

To: Anaxagoras who wrote (3999)	11/28/1998 2:00:00 PM
From: sam	Respond to of 8307

First, expenses will be much, much less for EGGS in cyber than in brick. Margins will be much, much greater. Second, there is just so much more that EGGS can do now. As much as I tried to downplay the 'Pig' press release, it was extremely important. Pigs. Not software. EGGS is not only transitioning from a store-bound, retail software store (a business bound to become extinct in the 2000s), but it now ALSO sells other items as well through its direct surplus and auction sites -- not just software and hardware. Thus, last quarter's revenue growth may not even be that relevant for a total picture of what EGGS can do THIS quarter (and beyond). At least that's the theory. And if it transitions into an EBAY type auction site (which I believe is now in the works) as well, then the sky is the limit since inventory is non-existent for that portion of the business. EGGS has brand name recognition. They have lots and lots of web based publicity. They have a business model that Wall Street loves. And management is smart. FWIW, I hope it opens in the 20s -- I think its heading to the 60s. Good luck on your short.