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Technology Stocks : Fingerhut (FHT) goes on Web site acquisition binge -- Ignore unavailable to you. Want to Upgrade?

To: Neil S who wrote (24)	12/14/1998 10:26:00 AM
From: BillyJoe McCallister	Read Replies (2) \| Respond to of 144

Another positive write up today in the street.com Things looking good.

To: Neil S who wrote (24)	12/29/1998 5:35:00 PM
From: Neil S	Read Replies (1) \| Respond to of 144

Fingerhut Sees 1999 Online Sales of at Least $70 Mln (Update2) quote.bloomberg.com Fingerhut Sees 1999 Online Sales of at Least $70 Mln (Update2) (Updates with closing share prices.) Minnetonka, Minnesota, Dec. 29 (Bloomberg) -- Fingerhut Cos., the second-largest U.S. catalog retailer, expects Internet sales next year of $70 million to $100 million, or more, as online shopping becomes more popular and the company makes more acquisitions. Internet sales this year from the company's online catalogs, including fingerhut.com, MountainZone.com and Freeshop.com, will total about $30 million, analysts said. Fingerhut's total revenue for 1997 was $1.8 billion. Fingerhut, which still considers itself a catalog retailer, bought three online retailers this year that offer gifts, apparel and information services. Since May, it has bought an equity interest in PC Flowers and Gifts Inc., FreeShop International Inc. and MountainZone.com from Zone Network Inc. ''It's a very promising channel for us,'' said President William Lansing. ''The Internet just lets us do more. It's a wonderful tool.'' The company's stock has gained 22 percent since July, when it agreed with PC Flowers and Gifts to sell gift baskets, gourmet food and balloons over the Internet. The purchase of the stake was a first by Lansing, who joined the company to help with marketing and acquisitions and Internet sales. Fingerhut rose 3/4 to 16 1/2. More Acquisitions Fingerhut is also poised to acquire stakes in at least another five to 10 Internet companies in the next year to 18 months, analysts said. Fingerhut likely will buy minority interests in companies with a long-term goal of increasing that stake, they said. ''Down the road it's not inconceivable that they could generate about $300 million to $500 in Internet revenue,'' said analyst Robert Evans of Craig Hallum Capital Group,. who has a ''buy'' rating on the stock. A presence on the Internet also will enable the company to cut the cost of processing orders, because online purchases save the company $3 an order, he said. The Internet will allow Fingerhut to better communicate with customers through online advertising and product offerings, in addition to the cost cuts, he said. Fingerhut, based in Minnetonka, Minnesota, also is building its portfolio of mail-order catalogs in an effort to consolidate the fragmented industry. Fingerhut bought three catalogs this year for about $202 million: Arizona Mail Order, J. Crew Group Inc.'s Popular Club Plan unit, and Bedford Fair Industries Inc. The acquisitions will help the company meet its goal of increasing earnings annually by 15 percent, Lansing said. Fingerhut is expected to earn 80 cents a share in the fourth quarter, the average estimate of three analysts surveyed by First Call Corp. Other Retailers Anticipation of fast-growing sales over the Internet has pushed up the stocks of other catalog retailers this week. SkyMall Inc.'s shares nearly tripled yesterday, and rose 5 3/16 to 40 3/4 today, after it said Internet sales will increase sevenfold this year. Spiegel Inc., another catalog retailer, rose 2 3/16 to 7 11/16 after rising 21 percent yesterday. The nation's leading catalog retailer is J.C. Penney Co. Its shares rose 1 3/16 to 48 13/16. Fingerhut will sell minority interests of about 15 percent in many of its units to the public next year, Lansing said. ''We won't spin anything off at this time,'' he said. ''But, that's not to say that won't happen in the future.''