as #1 of 18 in the retail/wholesale industry
backed up with 3 strong buy ratings. Fiscal year
estimate raised to $1.22...and IMHO, this is conservative.
Good luck ELBO longs,
once again something positive on this company
comes out and nothing happens. UNBELIEVABLE!!!. whether
it was payback for the erroneous mention in a past
article or not doesn't matter. nor does it matter that
individual investor doesn't have the greatest of
credibility. all that really matters is that more people can
read about this company and its fundamentals.visiblity
is the most important thing for a company like this.
i am still positive on this company. even if elbo
only meets projected earnings the stock has to go up
to at least the low 20s this year. keep the faith
all elbo longs.
Remember, they (I think her name was Isabella)
wrote that negative article about ELBO back on April
7th and wrote incorrect facts about the lock-up?
Pickle said ELBO IR knew about it. Maybe they lobbied to
get IIOnline to post a positive article to correct
the mistake! It's a good read!
Letter as you point out, it's interesting to note
there are 17 items recommended at the tail end of his
current issue of which you are correct, ELBO is one of
May I also point out that Reitmeister also
A. C. Moore, Inc. which is ACMR and Braun's Fashions
Corporation which is BFCI. Both ACMR and BFCI have been
stocks I've posted about on this board quite often, BFCI
for months now and ACMR within the past 30
Thank you for pointing this out and it's nice to see
someone in the business confirm what I've felt all
From: Individual Investor
======STOCK OF THE DAY==========
Analysts expect the
company to earn $1.22 a share for fiscal (January) 2000,
according to Zacks Investment Research. This is up from
$1.11 in fiscal 1999.
First fiscal quarter
consensus estimates call for $0.13 per share. But, this
number could prove conservative if Sega's debut of
Dreamcast is successful.
A potential longer-term
catalyst is the company's plans to open a new type of
store, called EB Kids. The company plans to open a pilot
in September, and is aimed at the parent looking for
educational games and software for the kids. It will be an
'all G-rated interactive store,' according to
Even if Electronics Boutique earns the
expected $1.22 a share, that makes shares at a recent
$15.88 a share cheap, trading at 13 times consensus
Electronics Boutique seems to
have a secure position in the very competitive video
Individual Investor Online. Here's the full
Electronics Boutique: The Anti-Meat
Individual Investor Online Analysis
Attention high school girls: Getting
dates for the prom is not going to be easy this year.
You see, the video game industry is coming out with
zippier new technologies, like Sony Playstation 2 and
And in a recent poll conducted by
Electronics Boutique (NASDAQ: ELBO) before these product
introductions, male teenagers said they prefer playing video
games to going out on dates with female counterparts.
So there's little surprise that Sean
McGowan, an analyst with Gerard Klauer Mattison, picked up
coverage of Electronics Boutique with a 'buy'
recommendation just last week.
Electronics Boutique operates
over 500 video and computer game stores. Most of the
stores are located in the United States, but they can
also be found in Puerto Rico, Canada, Australia and
South Korea and the company is looking at new markets
like Scotland and Israel. 'We're not afraid of
entering new markets,' exclaims Joe Firestone, president
and chief executive officer at Electronics Boutique.
The company, which went public last July, also sells
its products through its website, ebworld.com, which
it claims is profitable.
The video game business
has been pretty strong in recent years thanks to the
introductions of newer and more sophisticated game platforms.
And newer products are expected to boost the upcoming
Afterall, Nintendo recently trotted
out a new color Game Boy. This fall Sega is
introducing its new game platform called Dreamcast. Sony
plans to issue its PlayStation 2, which is to be
DVD-based. It will have greater storage capacity than prior
products, making the games more detailed. Also, games that
go to the original PlayStation will be fully
compatible with the new station.
Another key to the
business: Loyal, rabid customers. The typical game-player
is male, around 20 years old, plays on average four
hours a day, and buys on average 17 games a year. This
$6.1 billion domestic market's development has
intensified of late as the technology has gotten better.
The introduction of personal computers for less than
$1,000 has also boosted game sales.
And as a
specialist in the business, Electronics Boutique feels it
has a competitive advantage in a crowded market,
which ranges from retailers like Wal-Mart (NYSE: WMT),
Funco (NASDAQ: FNCO) a strip-mall based video game
retailer, and your mom and pop shops scattered across the
For one thing, Electronics Boutique usually
offers about 20 new games a week. 'The guy who buys 17
games a year,' says Firestone, 'is coming to
Electronics Boutique [to shop].' He also points out that his
company gets the new releases at least 7-10 days before
other stores, and carries all titles. 'Stores like
Wal-Mart have a better market share with the older
titles,' he insists. 'They typically focus on the 'Top 40'
Electronic Boutique has also been
successfully incorporating its website, which the company
claims is profitable. Management expects it to quadruple
in sales this year to $16 million.
Boutique also carries a clean balance sheet, with $42
million in cash. As a result, it comfortably plans to
open 100 new stores this year, and still barely touch
its line of credit. (con't next post)
ELBO is recommended in the 5/16 issue of the
Reitmeister Investment Newsletter. You will find the
commentary near the end of the issue. Come check it out at
Editor of the Reitmeister Investment Newsletter
as Keith Mullins of Salomon Smith Barney, is a
guest on Market Watch at 10am Eastern. Everyone should
remember that Mr. Mullins co-wrote the report for ELBO,
along with Maureen McGrath. Everyone cross your fingers
that he will mention ELBO, as a great 1st qtr. report,
along with great forward looking news in the pipeline,
is right around the corner!