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Electronics Boutique Hldg (ELBO) Message Board

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  • natrl9 natrl9 Nov 26, 1999 8:56 PM Flag

    Prudential

    I think they ought to use some of that cash to pay off the advertising for ebworld.com. Anyone have any ideas as to what they are going to use the cash for?

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    • Let me apologize to you and the ELBO board for
      misinformation I posted several posts ago. You had asked if
      anyone knew who had lowered their Q-4 earnings
      projections. I had read the S.S.B. and the Prudential reports
      on Multex approximately a day or two after the
      conference call and attemped to answer your question from
      memory. Obviously, I am getting old and should not rely
      on what was once a dependable resourse...(my mind)
      or should I say lack of same. For the record, it was
      S.S.B and no Prudential that lowered Q-4
      expectations...siteing higher that expected earnings in the core
      business to be offset by a one time extraordinary expense
      from their internet initiative. S.S.B. went on to say
      that even with the additional internet expense, they
      and addtional shares outstanding, they still expected
      ELBO to make their original yearly number. Dah...I
      should hope so, given that we are crushing the original
      number after three quarter, even with the .06 cent
      charge for the I-net subtracted.
      You know, it is
      interesting to me that the Street hasn't yet picked up on
      what is happening here. ELBO is investing $10M in the
      growth of their E-commerce website ebworld.com, via a
      new (more commerce friendly) website format, they
      just finished building a from the ground up, a "state
      of the art" internet call center that will enable
      them to give top notch customer service, they just
      opened a distribution center in order to facilitate
      delivery on the orders they recieve and now that they have
      all the pieces of the infrastructure in place, they
      are rolling out their plan to dominate the internet
      video game business by spending on all forms of media
      and advertising and the building of strategic
      alliances with portals (like the AOL deal) and content
      providers (like the IGN and CNET deals) in order to drive
      visitors to their site. (How's that for a run on sentence)
      Anyway, you would have to be blind not to see this
      strategy unfolding. I just wonder when the price per share
      will begin to reflect this forward thinking and action
      on the part of EB. All this and still projected to
      make their number for the full year. Now that's
      progressive management at its best. Of course, as usual, all
      in my very humble opinion.
      Good luck,
      RBL

      • 4 Replies to rather_be_long
      • Live2play...where the heck are ya? Miss hearing yer comments!

        C.F

      • The price per share has gone up. The stock went
        from $14 to $26 (thats almost 100%).

        I think
        most of those people are gone now. Lets just hope we
        could go from $20 to $40.

        I'm hoping this
        stocks act's like BBY & CC.

        GOOD LUCK TO ALL.

      • importance of building the infrastructure
        necessary to handle the business from Internet
        sales.

        http://www.cnetinvestor.com/newsitem-fd-bloomberg.asp?symbol=68467854

        In my humble opinion, you could have the greatest
        looking site around but without the call center to
        properly handle the inquiries and the distribution
        capabilities to get the product into the hands of the
        buyers...you would have nothing. Again, this is why I feel EB
        has all the pieces in place to be a major force in
        the E-commerce arena...now, and in the future.
        RBL

      • Noticed a Reuters story on Toys R Us interim CEO
        Michael Goldstein, stating that they are having trouble
        with their internet site. Gee, too bad. I guess they
        should of had the foresight that ELBO had when they did
        this great infrastructure design of their website,
        calling service center, and the CNET, AOL deals. But what
        Goldstein did say is that video game units and their
        software are popular this season, such as Nintendo's
        portable gameboy and N64, Sega's Dreamcast, and Sony's
        Playstation. He also said that anything Pokemon was seeling
        very well. Gee, somehow that didn't surprise me.
        Perhaps if customers get frustrated with other retailers
        websites, that they will go to ebworld.com, and receive
        customer service that they only dreamed of. This is where
        all the advertising through tv commercials and other
        media comes into play. ELBO is continually trying to
        build marketshare through great service. IMHO, I feel
        they have timed this new venture perfectly. Also, we
        need to start doing mall reports for everyone get a
        grasp on how well the stores are doing with the new
        checkout scanners to allow for more customers to get
        through the doors. Your link in your previous post
        mentioned that Firestone said that they could of done
        better sales if just the lines weren't so long at the
        stores. Once again, the ecommerce upgrades come into
        play. Go ELBO!

    • According to the Pru report, that is what they
      are going to use part of the proceeds of the SPO for.
      In addition, Katicia goes on to say that if the
      advertising drives sales, there is a good chance that
      Ebworld.com will be spun-off as an independent equity some
      times next year.

      • 4 Replies to motherrooster
      • possible spin-off of ebworld.com.
        As you know,
        ELBO is unable to pay any kind of cash dividend on its
        shares because they are a holding company and because of
        the terms of their $50M credit facility. My hope has
        always been that when and if they do spin-off
        ebworld.com...we as shareholders of ELBO would receive some form
        of pro-rata stock dividend in the new
        company...perhaps something along the lines of a 1 for 3
        arrangement. This will be an interesting question for ELBO's
        investor relations department at some point down the road
        because, IMHO, if they were to spin-off ebworld.com they
        would be removing what would, by then, be an extremely
        valuable asset from the holding company and shareholders
        in the holding company should receive compensation
        if this were to occur. Just a passing thought.
        Comments??
        RBL

      • possible spin-off of ebworld.com.
        As you know,
        ELBO is unable to pay any kind of cash dividend on its
        shares because they are a holding company and because of
        the terms of their $50M credit facility. My hope has
        always been that when and if they do spin off
        ebworld.com...we as shareholders of ELBO would recieve some form
        of pro-rata stock dividend in the new
        company...perhaps something along the lines of a 1 for 3
        arrangement. This will be an interesting question for ELBO's
        investor relations department at some point down the road
        because IMHO if they were to spin-off ebworld.com they
        would be removing what would by then be an extremely
        valuable asset from the holding company and shareholders
        in the holding company should receive compensation
        if this were to occur. Just a passing thought.
        Comments??
        RBL

      • SUCCESSful as an IPO. The vast majority of the
        funds to make it what it is currently, state of the
        art, has already been spent. This would be an
        extremely popular IPO. Whether or not we as shareholders
        will be in on the deal is pure speculation. However,
        an announcement by ELBO would make the price of
        current shares skyrocket. So it would still be great
        news! Thanks for the reply. I guess it is Maureen
        McGrath of SSB that we owe our lack of gratitude to. What
        a grinch! she will be proven WRONG!!!

      • Sorry for the late reply.

        No, this is the
        only board I know you from. I had you confused with
        someone else on another board who puts forth insiteful,
        and thought provoking messages.

        Yes, Elbo is a
        steal at these levels. I couldn't help but average up
        (UP!!!) from the recent dips. While their e-commerse
        strategy might not really play out over the long term, the
        short term attention it draws to the business and to EB
        will be helpful in bringing this stock to the next
        level.