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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: Eric Nelson who wrote (42)	12/7/1998 11:04:00 AM
From: Aryl Kohrs	Read Replies (1) \| Respond to of 418

Interesting article in todays WSJ about Allou and e-commerce in general. I also had the opportunity to hear the head sales guy pitch the company at a lunch. The points I took away was the internet venture was not core to their direction (i.e. they weren't betting the farm on the internet). That the costs of advertising on AOl etc. was great, but better they did it awhile ago....advertising rates increasing. The spin-off was not a certainty given the IPO climate. My opinion, they need to make sure they have brand/site recognition. A little press (aka Amazon) a the correct times and I think this stock explodes. Christmas numbers should validate their spending and the debt worry goes away.

To: Eric Nelson who wrote (42)	1/11/1999 9:46:00 PM
From: Jim Mac	Respond to of 418

I must agree with FragranceNet's contention that full-priced fragrances on the Internet won't last. It's common sense: If you can buy the same product for 30% off, with free shipping, free giftwrap, same service, same selection, etc., why would you shop at fc.com? I think it's wishful thinking on the part of Allou management to believe they'll be able to maintain prices at retail levels, everything else being equal. The word of mouth about FragranceNet will keep spreading, and fc.com's traffic/sales grow will slow down, while FragranceNet's speeds up with more and more defectors from fc.com. This will force fc.com to cut prices, while still spending tons of money on portal ads. I don't like it.