Interesting retail concept being developed by experienced based ebay. This is something everyone talked about doing and ebay then, did it themselves! I think a good move.
Stock Symbol- AUML.PK
Shares- 65,015,000
Float- 11,015,000
Recent price- $0.88
Short term price- $4.375
Web Site - www.auctionmills.com
Online shopping has been growing at a breakneck pace the past few years. Consumers all over the world now have access to items at the touch of a finger. Auction Mills does all the work that saves the seller an incredible amount of time. The psychology of being the "winning bidder" is a powerful force as buyers rejoice that they have won a product when they pay for it.
eBay management estimates drop-off stores will generate $10 billion in business in the next year. Auction Mills forecasts over $1.5 million in revenues, which is just the tip of the iceberg with the way people now shop online.
Investment Highlights
Franchise requests have been received from 44 states and 16 countries, some of which are Australia, Hong Kong
This is a unique company that seeks to fill a growing demand
Easily identified audience to target their line of products
The Company is poised for rapid growth based on historical model comparisons of their select brand products available
eBay auction shopping is a highly convenient form of home shopping and is as simple as bidding for the item you want. Auction Mills Inc. seeks to become a leader in supplying the buying public with a convenient, professional and confidential approach to participating in the eBay online marketplace. Auction Mills has an established relationship with eBay and looks to cultivate this relationship with existing franchises around the globe. Many buyers use online auctions because they are looking for something that a regular store on the streets will never dream of selling. In addition, many new, almost new and slightly used items are sold on eBay every day -- making it perfect for the sale of unwanted gifts, clothing that no longer fits and hobby accessories that no longer hold a person's interest but will other's. Selling to millions online is just getting started.
Auction Mills' affiliation with eBay is perfectly timed as eBay continues its rapid growth. For the fourth quarter of 2003 eBay's gross profit was a record $532.9 million. Projections for 2004 suggest eBay may reach $3 billion in net revenue in 2004 or a year earlier than anticipated. With an estimated 100 million users around the globe, it stands to reason that the forward-looking companies like Auction Mills stand to profit handsomely with the correct marketing strategies -- drop-off stores.
DROP-OFF STORES
These stores manage the entire eBay sales process, from evaluating an item's potential selling price, to digital photography of the item via registration of the item, writing a description, storing, and collection of payment, packaging, shipping and forwarding the proceeds to the seller. Under the company business plan, the item for sale must be worth at least $50 from which Auction Mills receives a fee of 38% of the proceeds up to $200. These fees decline on a sliding scale above that price level. Items not sold are either offered to charity or returned. There is no risk on Auction Mills' part as they serve only as the middleman in the transaction.
Growth Opportunities
As investors, we look for companies that can create a strong foothold in a particular sector and make money. If so, the stock price rises and growth potential expands. Finding a niche in the ever-competitive Internet arena is the key, and Auction Mills appears to have done just that.
Newest news:
July 21, 2004--Auction Mills Inc. (Pinksheets:AUML - News) announced today its intention to do a 5-for-1 forward split of the Company's common stock with an effective date of July 30, 2004. |
