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Technology Stocks : Autobytel (ABTL) - Buy Autos online
ABTL 7.020+0.3%Oct 6 5:00 PM EST

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To: Bill Ounce who wrote (479)6/10/1999 11:39:00 AM
From: Bill Ounce  Read Replies (2) of 594
 
feedmag.com -- the pretend Internet

feedmag.com

This article states that the Internet is great, but that it's really tough to make money at it because consumers are given price comparison data which leads them to view mark-ups (i.e. profits) as inefficiency. This 'fact' is not incorporated into the capitalization of many Internet companies.

This leads me to think that a key for ABTL is what added value it can provide to generate profits. I would rather go to a vendor neutral place rather than direct from Ford, Toyota or Volkswagon. But dealers would naturally resist this to protect their margins.

A summary quote from the article:
The net "effect is a wholesale transfer of information and choice (read power and leverage) from producer to consumer. Producers (and the stock market) prefer one-of-a-kind businesses who can force continual price increases for the same products. Consumers, on the other hand, prefer commodity businesses where prices start low and keep falling"
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