Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SAMOA1 who wrote (6024)	1/20/1999 4:42:00 PM
From: Anaxagoras	Read Replies (2) \| Respond to of 8307

<<Could it be that ONSL's problem is that EGGS is taking business away from them?>> No, not likely at all, IMO- that spin would be worthy of the White House. ONSL attributed the decline in their computer product revenue to seasonally limited availability of excess and refurbished goods during the main holiday selling season. Excess and refurb supply runs counter to normal sales cycle, which makes sense if you think about it- you're going to have excess stock to get rid of in off-peak times, and that's where ONSL gets its stuff. Thus, in the Q4 candy quarter when demand surges the excess/refurb supply goes way down. Now, I don't know how much exposure EGGS has to the same problems, but the following statement by ONSL's CEO was chilling: "As a result of these supply constraints in excess computer products, we paid higher prices to secure available goods, leading to an expected margin of 8.5-9% for the fourth quarter." And yet there was that huge 100K block that went off today higher than the closing price. Hmmmmm.... Puzzling. Anaxagoras