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Electronics Boutique Hldg (ELBO) Message Board

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  • natrl9 natrl9 Jan 24, 1999 12:55 PM Flag

    Barron's article with INVN (InVision Tec

    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.

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    • BTW..

      >>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.

      Don't
      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.
      For now.

      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
      round.

      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.

      It's a
      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.

      Good
      luck all, even Pickle, bless him:)

      Rob

      • 3 Replies to unk_bob
      • 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
        1/4p.

        In relation to GAME, EBQ is far and above superior,
        but its trading worth is far below Game. Can you shed
        some light?

        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
        informed opinion.

        Regards.....May_buy

      • 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
        in ESAT!!!!

    • 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
      perogative.

      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.

      3)
      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
      months.

      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
      it.

      5) ELBO is trading about 20 X their current years
      earnings and it's just not cheap anymore.

      Pickle
      007

      • 1 Reply to Pickle_007
      • 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.