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and reaching for straws. You're really starting
to dig now, to try and punch holes in ELBO's future
success. Every company in the stock market has the same
concerns that you have spoke upon. If investors thought
every coorporate officer was going to screw them,
nobody would invest in anything. There wouldn't be a
stock market. As far as the Kim Trusts, that's exactly
what they are. There was no mention of a lockup on any
updated filing that I saw. If you can prove it in words,
please do so. Do you really think the Kims would
sacrifice the growth of their company for a few dollars, in
what it could be worth in the future? Do you think
they would throw the game, losing all potential
institutional ownership by doing something stupid? Currently,
institutions own 12.3% of ELBO. Held by 15 institutions. Not
bad for a company right out of the gate. Let ELBO
prove themselves, and that number will grow. I look for
ELBO to release 4Q sometime mid-march. I suggest you
go back over the Prudential Report dated Jan. 5,
1999. Highlights include,"Strong sales trends for the
potential for positive earnings surprise. An ongoing
internet business. In our view, the market does not fully
appreciate the companies burgeoning web business, which we
expect to quadruple(400%) in 1999. Over the next few
months, we expect the company to better position itself
by discussing its web business in more detail and
possibly ENTERING INTO ALLIANCES WITH OTHER SITES that can
create more traffic and sales for EB. P.S. I dumped my
broker, because I am much more successful without him.
>>I look for ELBO to release
4Q sometime mid-march.
On the subject of
when earnings will be reported, it might interest you
to know that in the UK results will come out on
April 14. That's for the year ended Jan 1.
know if they are to release any further trading
statements in the mean time.
It's a long time to
wait, and since xmas results have already been made
public, it's pretty easy to work out what the results are
going to look like. From the look of the share price
over here, investors figure they have 3 months before
they have to buy, so they are finding other stocks.
FWIW, I doubt Mr Kim would sell up
now - why would he? He gets a healthy salary and owns
stock in a growing company. Lots of directors etc own
company stock. They sell when the company looks like it's
in trouble. ELBO doesn't look like that at all - and
if you knew how good things over here were, you'd
value the 25% share of EBQ.
Now.. Don't think of
the UK as a little bonus, it is a sizeable market,
with little competition and the competition is
seriously behind EBQ (the UK ELBO). The potential for
expansion both in the UK and rest of Europe is staggering.
The US is one bitch of a country to compete in. The
UK is fat and lazy and EBQ is kicking up a storm.
Profits this year will be $25mil (that's at least 6mil
for ELBO) and the company has a market cap of $337
million (vs 378 mil for ELBO, I think). They should be
BIGGER than ELBO within a year, and should be worth
$1billion in 3 years.
Retailers find it much easier
to make money here. We are incredibly densely
populated, with most people living in big towns and towns
all near each other. Distribution is a piece of cake.
No deserts to cross:) No threat from the internet
(why buy online when you can walk to the store? And we
pay for all phone calls..)
Also, games here at
30% more than in the States - much higher margins all
Not even a threat from rivals. There is ONE other
game retail chain in the UK, a company called Game. It
has no loyalty card (EBQ has ~750k loyalty users, all
giving away nice info about their buying habits). Game
does not have a returns policy, EBQ does. Game does
not have price matching, EBQ does. Game does not
trade in used games, EBQ does. Game does not have
information about US sales, EBQ has all of ELBO's figures.
Games come out in the US weeks before the UK, so EBQ
knows exactly what and how much to buy.
hell of a good relationship. And don't be surprised
one day if 25% of EBQ's profits catches up with
ELBO's total US profits. I think when Wall Street
realises the UK factor, you're in for a treat.
luck all, even Pickle, bless him:)
I acknowledge your comments regarding EBQ as I
also hold this stock, but for the life of me, cannot
understand why this stock is only trading at 77
In relation to GAME, EBQ is far and above superior,
but its trading worth is far below Game. Can you shed
Would you also know why one of the
directors would sell some of their holding in EBQ when this
company is doing so well?
I would appreciate your
Thanks Rob, you have done your homework, or
should I say due diligence(dd). I'm going to try to
contact the company with regards to 4Q and year end
results. Mid April for year ending co.'s over here is very
late. At any rate, when I saw all the long lines at
competitive stores in DEC of 97, I said I ought to be a part
of this company. So now I'm in ELBO. They had great
results from the market, I expect ELBO to do better. As
for Pickle, it reminds me of a lovers spat, each
wanting the same result, but not knowing how to get
there. That's why I rely so much on the numbers. They
don't show any emotion! Keep in touch!
what im curious about is if you've got to pay for
all calls in the UK including local.. how do you hook
up to the internet there and spend hours surfing
unless you're a multi-millionaire... jsut one day
surfing the web would cost you hunderds of dollars, no?
UK will never be on the net if that is the case...
do you have to rely on sattelite connections to get
an affordable net connection?
time to invest
Lwet me point out a few errors. You are obviously
not hearing what I'm saying.
1) I never said a
corporate officer was going to screw the investing public
nor did I say Mr. Kim was going to screw anyone. I'm
telling you there is a lock up and at the furthest, is
only good for 12 months. Now, I'm not going to prove
that to you. I know it exists. If you want to verify
that, you can do so. If you care not to, that's your
2) Considering selling some of their inside stock by
the Kim Trusts, isn't stupid. Do you think insiders
work entirely and exclusively for those that bought in
the IPO or do you understand there comes a time when
they need to also think of themselves too. That's not
called "screwing the public." ELBO stock needs liquidity
in order to eventually become an institutional
darling, if it ever does. It can't do it with the way the
stock is held and trades today. Are you not aware ELBO
is a 200 share market. ASk your broker to look at
his equipment. He can verify that for you.
I never indicated at all, never, never, that I did
not like ELBO as a company. I think they have done a
superb job. I admire that performance and for that
reason, I continously lurk on this board and quote it
during the day. I've made out like a bandit trading
ELBO. It's been one of my best this past 12
4)Even if their web ecommerce volume goes up 400 %, it
will amount to $ 50 M per year, and while that's
nothing to sneeze at, it's just 10 % of the overall
volume. I commend them on bringing this segment of
business to commerical vibility, but that alone won't
carry the company. It's a handsome addition and I admit
5) ELBO is trading about 20 X their current years
earnings and it's just not cheap anymore.
Try to get some ethical credibility back by not
using the ELBO board for pushing your other stocks.
Secondly, prove to me Mr. Kim is going to devalue the price
of ELBO by selling after a so'called "lockup
"expires. Prove to me how an imaginary secondary offering
is going to set back ELBO on their heels. Prudential
never mentioned anything about a secondary offering.
Are you really trying to downplay ecommerce, even
though Prudential themselves said this is a possibility.
Thirdly, ELBO is STILL cheap, based upon all the knowledge
we are already too familiar with. The S&P trades at
a PE of 32. As an experinced investor, you know all
too well that when companies first go public, they
are very conservative with their estimates. Plain and
simple, WE ALL KNOW ELBO is going to blow the roof off of
4Q estimates. If you can, prove to me these things
that I ask, or just sit back and enjoy the ride.