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Essentially, yes.
They're just a few weeks old so they're all still at the breeder's place near Stuttgart somewhere. There's three males and the stud owner in Illinois has decided he fancies one; I'll have the other two.
Surprisingly, as the sire is a superstar, nobody likes the look of the girls so they'll go to some folks in Germany somewhere who want them as pets (rather than working hounds).
Or, as you put it, they'll be put in a sack and so on. But weaker ones are not selected out, rather, good ones are selected *in*.