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Technology Stocks : ITURF Inc. ( NASDAQ:TURF ) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (113)	4/11/1999 5:05:00 PM
From: Big Dog	Read Replies (3) \| Respond to of 614

Dear Mohan: In my opinion, TURF has the potential to be very profitable. First, some background provided by the Bloomberg article (April 9th): "Yesterday, iTurf sold 4.2 million shares, a 25 percent stake, at $22 each, raising $92.4 million. iTurf, which sells clothes and provides chat rooms for 10-to-24 year olds, a group it calls Generation Y, is one of the few money-making Internet companies to sell shares. It earned $464,000 on revenue of $4 million in the year ended Jan. 31 after losing $40,000 on revenue of $134,000 the previous year. iTurf "seems to be one of the more well-planned Internet companies that have gone public recently," said Mark Basham, an analyst with Standard & Poor's equity group. "Instead of just being an e-commerce site, they've realized that they need to provide a more comprehensive solution." iTurf, which says its target audience of 56 million people has $278 billion of disposable income, operates popular Web sites. It said 35 million of its pages were seen in February, up from 800,000 the same month a year earlier. iTurf also provides chat rooms and personal home pages for its customers. iTurf will benefit by being the first in its segment of the online retailing market, Basham said." I think that it is very positive that TURF is the first to target this market, has $92.5 million of working capital, and starts-off with the mailing list of Delia's to generate an audience. BTW, my daughter recieves the catalog frequently. First, labor costs will be very modest. Creative employees right out of school (21-24) are happy with $23,000 salaries. Add to that options and you get employees that are creative, hard working and tireless workers with no families to support. Second, working off of Delia's mailing list and commencing a hip marketing campaign (with $92.5 million to work with) will generate a wide audience. Third, TURF's web-page is a marketer's dream. In a few months you will see every major consumer company (e.g., Coca-Cola, McDonald's, Volkswagen, AquaFresh) placing ads on the web-page. Why? These companies will want to instill brand loyalty in this young audience. And here they are all in one place. In my opinion, unlike most internet stocks, TURF will be very profitable. The returns that we have seen in stocks like AOL and Yahoo can easily be replicated with an investment in TURF. Good investing!