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

To: Steven Messina,L.M.T. who wrote (4164)	11/30/1998 11:33:00 AM
From: Anaxagoras	Read Replies (1) \| Respond to of 8307

Here's a paragraph (short enough to avoid copyright violation) from Briefing.com on EGGS: Anaxagoras <<10:50 ET ****** EGGHEAD.COM INC. (EGGS) 24 - 7 5/8. In another attempt to get its stock moving upward, this online computer products retailer and auctioneer made public a press release detailing the launch of a new Web site. As has been evident with all .com stocks, the news had a very positive impact on the stock, sending the issue upward by more than $8 at the open. Unfortunately, the hot air in this Internet stock is beginning to be let out as the stock is now losing ground, down by more than 24%. This is not surprising given that today's press release deals with the offering of a separate buying venue of virtual superstores, surplus liquidations and multiple auctions. This is nothing new from what the company had been offering in the past, aside from the incredible positive spin the company is placing on this launch, calling it "the most significant step the company has taken since closure of the retail stores and the migration of our business to the Internet." Quite a statement for a company that has consistently lost money (oh, never mind, it's an Internet company) and has seen its revenues decline quite rapidly over the past three quarters. Still, somehow, given the incredible aura that Internet stocks give off, investors were duped into buying at the open on the latest and greatest Web site launch, only to see their investments explode in a manner of minutes. This is not the first time that a stock has run-up on a press release, and it won't be the last. However, investors should by now know that not all companies operate on an even keel and some are subject to inflate the truth for purposes of putting the best spin possible on their stock. This is one of those cases. >>