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Author Topic:   eToys (ETYS)
InvestorGuide Daily
Administrator
posted 03-07-2001 06:27 PM     Click Here to See the Profile for InvestorGuide Daily      Reply w/Quote
In brief:

- Heavy debt and a disappointing holiday season have forced eToys into Chapter 11 bankruptcy. The company is expected to begin its liquidation on Thursday by shutting down its website.

InvestorGuide Daily
Administrator
posted 02-05-2001 06:37 PM     Click Here to See the Profile for InvestorGuide Daily      Reply w/Quote
Financially beleaguered online toy seller eToys has told its remaining employees that it is unlikely they will have their jobs after the end of March. In a statement released after the close of trading Monday, eToys said it does not believe that additional capital will be available to the company. (source: CNNfn) http://cnnfn.cnn.com/2001/02/05/technology/etoys/

InvestorGuide Daily
Administrator
posted 01-29-2001 05:33 PM     Click Here to See the Profile for InvestorGuide Daily      Reply w/Quote
Perhaps more than any other dot-com debacle, the rise and fall of eToys parallels the treacherous ups and downs of early e-commerce. Portrayed as a superstar of the new medium in 1999, the toy retailer's market valuation soared to $7.7 billion the day it went public, 35% more than long-established rival Toys “R” Us. But despite a boardroom full of Harvard and Stanford MBAs and blue-chip backers, eToys wildly overestimated the size of its potential market and the speed at which it would materialize. (source: The Wall Street Journal) http://public.wsj.com/sn/y/SB980113514634649993.html

InvestorGuide Daily
Administrator
posted 12-18-2000 05:59 PM     Click Here to See the Profile for InvestorGuide Daily      Reply w/Quote
Amazon.com dropped 11% today in sympathy with EToys.com which announced last week it would badly miss estimates for the quarter (EToys lost 73% today). The big question is, will Amazon's partnership with ToysRUs.com stave off the Grinch? (source: CNNfn) http://cnnfn.cnn.com/2000/12/18/companies/toys/

Earnings
Administrator
posted 10-30-2000 06:33 PM     Click Here to See the Profile for Earnings      Reply w/Quote
Company Name (Ticker): reported, expected, same q last year

eToys (ETYS): -$0.33, -$0.35, -$0.27

Earnings
Administrator
posted 07-27-2000 06:49 PM     Click Here to See the Profile for Earnings      Reply w/Quote
Company Name (Ticker): reported, expected, same q last year

eToys (ETYS): -$0.37*, -$0.37, -$0.17
(*) Excluding non-recurring items.

Earnings
Administrator
posted 04-28-2000 10:03 AM     Click Here to See the Profile for Earnings      Reply w/Quote
Company Name (Ticker): reported, expected, same q last year
eToys (ETYS): -$0.30, -$0.33, n/a

newsman
posted 03-24-2000 07:43 PM     Click Here to See the Profile for newsman      Reply w/Quote
Just read this in Fortune:
Amazon.com, eToys, and 1-800-flowers are among the many e-commerce companies playing a shell game with "fulfillment costs," which are the expenses associated with warehousing, packaging, and shipping products. Offline companies usually record the expense on their income statements as cost of sales. But not dot-coms. A lot of them classify fulfillment costs as a "marketing expense."
Why? Because cost of sales cuts directly into a company's gross profit margin. Many e-commerce companies already operate with extremely narrow margins and have little interest in seeing them trimmed further. The other benefit: The practice enables dot-coms to hide operational expenses amid the huge marketing costs that investors believe are a temporary splurge associated with establishing brand recognition. If investors realized that these "marketing" numbers concealed large portions of the business' permanent cost structure, they might change their opinion about the company's prospects. Textbook e-tailer Varsitybooks.com went so far as to dismiss auditor KPMG in October when it objected to lumping fulfillment costs under marketing expenses. The company's new auditor, PricewaterhouseCoopers, approved the practice.

techbull
posted 02-23-2000 05:34 PM     Click Here to See the Profile for techbull      Reply w/Quote
Amazon.com, the world's largest Internet retailer, could buy eToys Inc., the No. 1 Internet toy store, said Henry Blodget, an analyst at Merrill Lynch & Co.

Consolidation and acquisitions will shrink the number of Internet-related companies in the next few years, Blodget said, and eToys will likely be bought.

"Seventy-five percent of all Internet companies will cease to exist in the next three to five years," Blodget said. "Amazon could buy eToys because it has expertise that Amazon doesn't have."

Amazon, best known as an online bookseller, has increased partnerships to bolster its retail offerings.

Since the year began, Amazon has agreed to buy 18 percent of closely held Living.com, which sells furniture and bedding. Amazon also said it entered a marketing agreement with online pharmacy Drugstore.com Inc.

Ebay is another possible acquisition target, Blodget said in an interview after a Merrill Lynch press conference on technology. Blodget said Microsoft Corp. is one of several companies that would be likely candidates to buy the largest Internet auctioneer.

mojo
posted 02-16-2000 04:37 PM     Click Here to See the Profile for mojo      Reply w/Quote
I was looking at the old posts on this board. Lee R posted this when ETYS was in the 60s:

"Just a guesstimate, based on:
+ size of market opportunity (big)
- current revenues and losses (small and big)
- barriers to entry (low)
- eventual margins (low)
- lead on competition (zero)
Add those up and you get a valuation of $12 per share..."

The stock is now at 13 and change. Very impressive prediction, Lee R...

diligence
posted 02-11-2000 11:58 AM     Click Here to See the Profile for diligence      Reply w/Quote
From a Herb Greenberg a couple days ago:
Two months ago eToys sold $150 million in convertible bonds as a private placement. Now, so those bonds can trade publicly, it has filed a registration statement with the SEC covering those shares. Right up front the company discloses that just two months after the original offering, the bonds are trading at 55% of their face value. "So much for taking the low-risk approach and buying bonds," snickers the ever-prolific Eric Von der Porten, a California money manager and regular contributor to this column. Normally I wouldn't pay attention to the boilerplate: "Although we believe that the net proceeds of this offering, together with current cash, cash equivalents and cash that may be generated from operations, will be sufficient to meet our anticipated cash needs through December 31, 2000, there can be no assurance to that effect." "Given the bath that the bond buyers have taken in the last two months," Von der Porten points out, "the company had better not need to head back to market anytime soon."

newsman
posted 02-04-2000 12:05 PM     Click Here to See the Profile for newsman      Reply w/Quote
Found this in an article, thought it was interesting:
With toymakers coming to town en masse soon [for a conference], Wall Street is showing it's always ready to play, too. The game in this case is raising stock prices. And the stock is eToys.com, an online toy seller that plunged 84 percent in a huge selloff during the Christmas holiday. In the process of the rout, eToys' underwriter, brokerage Robertson Stephens, got saddled with handling millions of shares of unwanted eToys shares that its customers unloaded by the carload.

Big institutions panicked one after another as the stock plummetted during December from its high of $86 toward the $13 level, with Yale University, Williams College, Dartmouth, and Stanford bailing, out along with major investors such as Bessemer Trust, Horsley Bridge, Ford Foundation, Moore Global and Fox Ventures. This week, the last of the big block deserters finally bailed out -- Vanderbilt University said Tuesday it sold its 152,365 shares.

The next move? Robertson Stephens the following day upgraded the stock, which it had criticized only weeks earlier. The upgrade on Wednesday by analyst Lauren Cooks Levitan has sent the stock soaring for the last two days, adding 39 percent to its value. It rose from its 52-week low of $13.75 on Tuesday -- the day prior to the upgrade -- to $19.12 yesterday, up $2.12 on the day. Robertson Stephens said its upgrade had nothing to do with the huge volume of shares its staff has been selling. "It's one of the questions that everyone will answer with a ‘No.' Why would anyone want to admit to that?" said Robertson Stephens spokesperson Elizabeth Denton. "We wouldn't upgrade a stock for a reason like that."

Jerry Mander
posted 01-28-2000 12:45 PM     Click Here to See the Profile for Jerry Mander      Reply w/Quote
I think investors are finally realizing that how hard it is to build a profitable etailing business. eToys has a long way to go. On the other hand, the stock is very cheap now. And there were a few bright spots in the "earnings" report... for example, the company spent $33 a person to acquire each new customer, well below analysts' estimates of $60. When eToys originally went public, I was willing to pay about $10-12 a share, and things have basically played out about the way I was expecting they would, so I could see hopping on board if the stock drops to 10-12 (provided the drop isn't due to some terrible news).

postman
posted 01-27-2000 07:06 PM     Click Here to See the Profile for postman      Reply w/Quote
I looked back at the old messages on this board, and most posters have been bearish from the start. And it turns out they've been right. The stock has slid from 77 all the way to 17. Ouch!

Earnings
Administrator
posted 01-27-2000 12:06 PM     Click Here to See the Profile for Earnings      Reply w/Quote
eToys (ETYS): -$0.52 reported, -$0.50 expected, not public same q last year.

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