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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (184)	2/15/1999 3:44:00 PM
From: blankmind	Read Replies (1) \| Respond to of 418

ALU's exposure from CNBC may give the stock a little more of a lift off; but given the paucity of decent internet companies, ALU is going much higher either way.

To: Tom Hua who wrote (184)	2/15/1999 5:45:00 PM
From: AJ Berger	Read Replies (2) \| Respond to of 418

Bad Timing on your switch from NAVR to ALU? ALU sort of reminds me of PICO, another stock trading at it's book value with major Internet real estate, namely 46% of PQT. Considering the ALU company has operated with nearly a 1% profit margin; now that it continues to pour money into it's web presence and sign expensive deals with all the major portals to increase it's hit/sales rates on it's sites, I would assume Tuesday's Earnings release will be riddled with costs eroding any possible profits from the Xmas season quarter. Friday night's CNBC appearance did little to ignite speculation that an IPO of their web sites would occure anytime soon. Rather they hoped the Street would grant them a higher valuation as they see many other Internet E-Commerce companies enjoy, especially now that the site is mature and garnering impressive growth. But without an actual IPO or chance of spinoff, ALU could be just another PICO, going nowhere fast, as Internet building costs continue to suck the profits out of more traditional operations. (which is exactly why NAVR claims to be IPO'ing NetRadio) I would definately agree that ALU should be a part of your portfolio, especially if you feel the need to shift from the more speculative Inet plays, to the more fundementally valued ones, but as far as timing goes, it's pretty clear from NAVR's press release this week that their IPO is immenent. Considering the double to quadruple gains from the new Inet IPO's we've seen during this otherwise down week, NAVR would appear the more timely pick. I'm long NAVR and would like to be long ALU & PICO, but would I sell NAVR now to buy ALU? I just don't see what the rush is given that one has imminent IPO events, and the other's been wispering IPO gossip since Oct'98 with very little price appreciation above $12 (the higher end of it's old trading range) to show for it.