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

To: SpongeBrain who wrote (7448)	3/27/1999 6:31:00 PM
From: KM	Respond to of 8307

Commentary on EGGS from Street.com: Egghead.com Blair G. Jeffery (3/23) Shares of Egghead.com (EGGS:Nasdaq) surged this week after Prudential analyst Paul Merenbloom initiated coverage with a strong buy rating. But Wall Street City analyst Blair G. Jeffery disagrees with the recommendation, saying it is "just not warranted." Merenbloom told clients that Egghead, a reseller of PC software, hardware and related products, "represents a unique e-commerce vehicle combining auctions, liquidations and superstores." But Jeffery says the firm has not posted a profit for four quarters. He also points out that, at 12%, Egghead has the worst average in the industry for gross profit margin. It may be possible for Egghead to hit the 30 share price target Prudential has set (it is trading around 20) if it can find a way to both increase sales and improve its profit margin, says Jeffery, but "right now, the firm does not appear to have any such efforts in place." More information can be found at: www.wallstreetcity.com