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

To: Elllk who wrote (4654)	12/20/1998 2:20:00 PM
From: James H. Irwin	Read Replies (1) \| Respond to of 8307

<<<Who knows what the street rap against eggs is that is keeping it from taking off??>>> I don't think that there is a rap per se against EGGS. I suspect that once a research firm comes out with a buy recommendation, we will obviously fill a need that has been left untended. What will bring that about, quickly? Remember that many times research analysts pick up stocks where a potential investment banking deal can be done. Brokerage firms don't make much on trading (1/16th or sometimes even less), they often lose money making markets (contrary to what many believe on this and other threads) and so they look to make roughly 7% on the investment banking fee that deals bring in...do the math (money raised *.07=big fees!!) So if EGGS at some point wants to do some financing that concept alone will bring bankers/analysts to their doors. Now also remember that EGGS spoke at an internet conference sponsored by Volpe, Whelan, Brown & Co. Also looking at the chart tells you the stock has made a nice move so far...but I like you feel the stock has a ways to go (looking at price/revenue valuation in relation to its peer group) Still only $537 million market cap (24.4 x $22), with $75 million in cash. Even a buyout at $40 could make sense using some of that very dear currency held by AMZN, EBAY, etc.