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No. of Recommendations: 1
I bought back into the knot at 62 cents.  My thinking
on this is that even if there is bad news in the
future (entirely possible), we are already priced for
worst case scenarios.  There is considerable upside.
For example, if the knot reaches profitability before
burning through its cash, then a 10-bagger is a
certainty from here--$6.20.  Will we do so?  No idea.
But there is no need, at this point, to assume
failure, which I believe the market is doing.

Here are some dot-com comparisons:

company     The Knot    etoys    drkoop     buy.com

gross
margins       73%        20%      -30%        4%

cash per
share         1.32       .86      .46        .82

loss per      
share (Q3)   (.29)      (.48)    (1.60)     (.23)

sales
growth        592%       259%     229%       73%

'01
estimates     (.65)     (1.07)    (.80)      (.50)

debt per
share         (.08)      (.89)    (.07)      (.01)

price          .62        .22      .20        .50


We have very little debt and enough cash on hand to
fund operations into 2002.  With gross margins as high
as they are, it's not necessary for us to have a lot
of revenues in order to reach profitability.


Taylor
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