SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Signature Brands Ltd.: (SBX:TSE) SGNTF
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Claude M who wrote (757)8/15/1999 2:40:00 PM
From: Syncrude   of 776
 
Claude,

I think that the key be the reaction of existing holders. How many will move on? New buyers will likely wait and see what existing holders will do.

Afterwards, it will depend on the quality of the business plan. Already last week Sony announced it was going into the direct market. Already thin margins may get thinner. More and more sellers are hitting the market as it does not take heavy technology to become a competitor. Thus, the marketing costs will jump. Just look at CDNOW's losses which grew again last year. To attract buyers, when you have one of the many sites selling CD's, you need to spend a LOT of money. So big marketing expenses and thin margins make for an uncertain future.

E-commerce will take time to take off.

Will CD-Plus succeed in attracting a following? Will it have the necessary financial resources to survive in a tough market? Despite the share consolidation, there will remain a very high number of shares outstanding. I would have thought that they would have done a greater reverse split. Many shareholders have been patient, but any rise will become tempting. Thus my reasoning that it will be the reaction of CURRENT holders that will drive the stock price, not NEW buyers who need a reason to jump into this e-commerce stock. Right now it is Internet stocks which carry speculator interest, not retail stocks, via brick-and-mortar or e-commerce.

Just another view.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News