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Dueling Fools

• Dueling Fools Intro
• Bull's Pen
• Bear's Den
• Bull's Rebuttal
• Bear's Rebuttal
• Vote!
• eMeringue Quote
• eMeringue Message Board

• Format for Printing
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Related Items

• Reader Responses
April Fools Revealed!
• Statement from the Brothers
• Hourly Updates
• Press Release
• CEO Interview
• Buy the eMeringue book
• eMeringue.com


Dueling Fools

eMeringue Bear's Den
by Zack Murrinir (TMF IBleed)

What is going on here? Wake up Fools! eMeringue is what it sells -- a bunch of hot air with fluffy coating. The company has reported nothing but losses in its all too brief corporate life, and I imagine new shareholders today will eventually be reporting the same thing.

Where can I begin? For starters, CEO Larry McCloskey has an OSHA bull's-eye painted on the back of his head. According to the eMeringue Web site, its production facility out in Boise used to be an auto parts dealership. That's a documented fact. Now, pardon my jaded ways, but it's going to take a lot of Borax to make me believe that grease stain residue won't make its way onto the meringue vat. All it takes is one scathing 20/20 segment and the company's e- commerce future is history.

The problem is that eMeringue is just another substandard company trying to cash in on the recent Internet craze by going public. A year ago this company was nothing more than a ranch littered with chicken feed. Today it is the talk of the investment community. It just doesn't make sense.

eMeringue's haste is evident given the company's absurd choice for a ticker symbol. H-A-F-D. I'm told it stands for "Have A Foamy Dessert," but I feel that something cryptic is afoot here Watson.

Now, I'm not some technophobe who thinks that all Internet companies are bad. If McCloskey were to mine the rich potato harvest of his home state and go public with eSpud, I might very well be the first to line up for the IPO. That I can get behind -- but this? It's just that I don't see the synergy here.

The business model is weak. Maintaining that edge over the competition that so many eMeringue fans point to as the company's crowning achievement has not come cheap. The company just paid $5 million to be the exclusive online meringue vendor for the 2002 Winter Olympics. That's a lot of meringue folks. Or should I say, a lot of sugarcoated hot air?

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