Looking forward, ELBO did $1.44 this year, without the ad charges. With Playststion 2 this year, instead of revenue jumping 27% like it did thisd year, I;ll venture to say ELBO increases revenue by 30%, especially with the 100-125 new store openings this yuear. That compares to 87 store openings in 99. Based upon 30% growth, and no charges this year forward, 30% comes out to $1.87. Give ELBO a conservative PE of 17, and we get a price target of 32. With a matched PE of 21, during the Dreamcast launch last fall, a PE of 21 gets us to 39. So I'll be buying on any dips, you do what you want .
I'm just frustrated with good companies that throw away good money.
Sure, ecommerse is important, and the way of the future, in some respects, but it's frustrating to see it weigh down a wonderful company. Spin it off, let it sink or swim on it's own merrits.
I have a considerable position (relative for me) in this company, and one obviously puts their money to work where they exzpect a dollar to increase the fastest. I just don't like to see anything that may put the breaks on.
patience with EBWorld. The website has now been exposed to thousands of repeat customers, hopefully permanently. Although ELBO paid considerably upfront, that ad campaign will benefit ELBO in the years to come. With a little additional targeted advertising, along with good word of mouth, the website is well positioned to be an efficient selling force in the future. If anything, one could accuse ELBO of being too conservative in exposing the site.