| After reporting earnings last week,
eToys (ETYS)
has been in a downward spiral, plummeting from 61-3/8 to 50-3/8. Yet,
the stock still has a tremendous market capitalization: $5.7 billion.
This is still much larger than the market capitalization of Toys R Us (TOY),
which stands at $3.7 billion.
By all accounts, Christmas should be stellar for toy etailers. For
example, in the eToys quarterly report, the company's revenues of $13.3
million beat many analysts' forecasts.
But eToys will not be the only beneficiary of the Christmas surge. Other
companies such as
Amazon.com (AMZN)
will see strong revenue growth.
Marginal Revolution: August 22, 2004 - August 28, 2004 Archives::
it via collaborative filtering, while brick-and-mortar rely on staff members. to participate, and not just the opinions of those with the right connections.
http://www.marginalrevolution.com/marginalrevolution/2004/week35HOME |
The Seattle Times: Books: Books in Brief::
In the right hands, even that old scenario can seem fresh. favorites are taking their wares beyond the bounds of brick-and-mortar shops.
http://seattletimes.nwsource.com/html/books/2003520321_bbrief14.htmlHOME |
However, there is one company, which has been under the radar screen,
that should get a pop as well. The company is The Right Start (RTST)
.
Okay, it has its roots as a brick-and-mortar retailer, focusing on
children up to age six (there are 45 stores). Though, it is a massive
market of about $25 billion per year -- and the market is growing. For
instance, there are four million babies born every year in the US. On
average, a household spends $4,000 per baby per year.
At the end of July, The Right Start launched its Web site and within 90
days, e-commerce revenues reached $1 million -- without an advertising
budget. Instead, the company has been pursuing a "clicks-and-mortar"
strategy, such as by cross-promoting the site within its retail outlets
with signage, hanging banners, shopping bags, coupons and catalogs.
The Seattle Times: Nation & World: For 30 years, he wondered: Was he ::
A 30-year puzzle: Who got it right and wrong. The Watergate players favorites are taking their wares beyond the bounds of brick-and-mortar shops.
http://seattletimes.nwsource.com/html/nationworld/2002294832_deepfelt01.htmlHOME |
The company will not rely solely on cross promotion, but also extensive
advertising. Already, $6.5 million has been allocated for a marketing
campaign, such as for TV, radio, print and direct mail. The TV spots, for
example, will get national exposure for "Oprah" and "Martha Stewart
Living."
The Right Start has been in existence since 1985 and recognizes that new
parents demand high standards. They want quality products and strong
customer service. So, RightStart.com provides free shipping/handling,
same-day shipping, a 100 percent in-stock policy and return of merchandise to
retail outlets.
The management team is strong. For instance, The Right Start recently
hired Scott Harvey, who was the senior vice president at Tickets.com (this
company is expected to go public this week, backed by Morgan Stanley).
Conclusion
The Seattle Times: Nation & World: Ex-cops trial is heavy on theatrics::
When the underboss wanted revenge, prosecutors said, he turned to the two favorites are taking their wares beyond the bounds of brick-and-mortar shops.
http://seattletimes.nwsource.com/html/nationworld/2002891907_cops27.html?syndication=rssHOME |
RightStart.com is a division within The Right Start corporation and was
established by a private placement of $15 million from venture capitalists
Sierra Ventures and Palomar Ventures. In all, The Right Start owns
two-thirds of RightStart.com and could easily be spun-off as an IPO.
RightStart.com is currently generating $350,000 per week in revenues. Yet,
The Right Start has a market capitalization of a paltry $76 million. In
other words, compared to eToys, the markets are woefully undervaluing The
Right Start. But as The Right Start continues to execute on its business
model, this should change very rapidly.
ALL NEW! internet.com's HotWatch a monthly e-mail subscription for $99,
featuring Internet Stock Report's top 10 noteworthy Internet stocks for the
month. Each month you will receive in-depth analysis on the top 10 Internet
stocks to watch with the information you need to assess the fast-paced nature
of Internet stocks. Staying on top of market changes in the Internet Stock
market is what counts. For $99 per year, you receive 12 timely issues sent to
you by e-mail. Don't wait, our next issue will be out before you know it with a
whole new
perspective on the market. Sign up today at: e-newsletters
 Critical Path to Buy FaxNet
 AOL, Blockbuster Form Promotional Alliance |
The Right Start: The Revenge of Brick-and-Mortar 
PRINT
Add to favorites