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Technology Stocks : SHRP: The Sharper Image, Profitable making $ on Internet! -- Ignore unavailable to you. Want to Upgrade?

To: Cape Cod Charlie who wrote (92)	12/21/1998 6:18:00 PM
From: JC Reddy	Read Replies (2) \| Respond to of 353

From Steve Harmon's Internet Report. ------------------------------------ "SHRP & MCRE. What can you tell us about the future for these stocks. Should we dump and take our lumps or hold on?" Reply: Quite honestly SHRP's market cap surprised us since the brand is well known, sales seem strong and customer service (we hear) is also good. Sharper Image (NASDAQ:SHRP - news) is a retailer chain that sells high-tech gadgets mainly for men, what we think may be a perfect gizmo for the web surfer demographic. This small cap stock's sales look strong--for the month of November alone it reported sales of $31.4 million vs. $23.6 million November of 1997. That one month sales comes via land-based stores, catalogs and website. Its website, sharperimage.com, sales grew 436%. For the nine months ended 10/31/98, revenues rose 10% to $132.2 million (or what could be $176 million annualized at that rate). With a market cap of $89.4 million that implies SHRP trades at less than 1x annualized sales, or 1/2x sales, for the hybrid land-catalog-web retailer. SHRP has to raise its profile, though, with more agreements with high-traffic sites, we think, to help boost its marketing for web-based sales, even though they're growing fast. ---- And that's exactly what SHRP did today - a deal with MarketWatch.Com. I think this thing may go up to $20 levels or more if it gets inspiration from the ONSL runup. What do you guys think?