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To: Bill Harmond who wrote (52574)	4/24/1999 9:28:00 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 164684

William, >> Near $1 billion run rate from $30 million inventory. But that I think is an under-estimate. Anyway, what are they going to put in the quintupled warehouse capacity ? Maybe you know this answer. Yahoo reported 11c Q1 earnings. First call has actual earnings at 7c, do you know why ? is it the dilution from GCTY and BCST ?

To: Bill Harmond who wrote (52574)	4/25/1999 8:10:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

So far they're doing pretty well. Near $1 billion run rate from $30 million inventory. William, Please understand that number is greatly distorted. The inventory dollar amount was right after the holiday season. A retailer's inventory better be lowest after the holiday season. Also, a retailer better have their best revenues during the holiday season. Let's look and compare inventory to gross sales for Q1 of 99. I believe the distortion will clear. Very very clear. Glenn

To: Bill Harmond who wrote (52574)	4/26/1999 11:13:00 AM
From: Greater Fool	Respond to of 164684

>>Near $1 billion run rate from $30 million inventory. I don't understand why everyone gets so excited about low inventories. Inventory only costs you in terms of cost of capital (~10% / yr?) and obsolesence. With books you hardly have the latter, especially considering the publishers take back the unsold product. And the former is offset by days in payable. I think it's viewed as good because it's coincidental with shorter channels (direct sales) and the resulting elimination of middlemen.