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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (4072)	12/29/1998 2:44:00 PM
From: Anaxagoras	Read Replies (1) \| Respond to of 4634

Thanks for the response, Dale. <<When you look at this biz.yahoo.com and this biz.yahoo.com, what's the argument to go long?>> First, as we know, just because a stock isn't a long doesn't make it a short, and conversely. Second, your reference to the URLs is a little too subtle for me, so let me help out the short argument. A) There is no institutional coverage, and that's a weakness. However, as of Sept 98 you had 4.855 million shares in the hands of institutions, or about 20% of the shares outstanding, just about right for a bull scenario. I would expect coverage in the near future, FWIW. B) Losses. Not surprising, however, since it's in a "growth" phase, and rev growth is the thing that matters now. At the moment the stock has a PSR of about 2.5, which, although expensive when compared to CPU, isn't diddly when compared to typical e-tailers. EGGS recognized its predicament of losses and made a pretty savy move to completely eliminate bricks and mortar- that takes vision and cajones. OTOH, some of the stuff on the YHOO URLs you posted is quite positive; nice cash per share, quite a bit more than CPU for that matter, fine current ratio, no LTD, nice chart.... Overall, quite a few positives, several negatives, a very interesting story. As I said, there's a lot of other e-tailers that are nothing but fluffer-nutter, so I don't see the virtue in going whole hog bearish on EGGS. Anyway, I'll play it both ways, but for now it looks up, and CPU looks down- now that's a crappy chart. These may swap trends after EGGS' quarterly report around Jan 19th (from memory). <<Unless they start selling gifts like AMZN, I don't expect this run to survive January. >> I'd appreciate any other comments. I get dangerous when I start to get bullish on a stock, so talk me out of it! I'm much better on the short side. :-) Anaxagoras