I also got a newsletter today re BHIT
probably insiders want to get out so there is marketing compain: "Big Boys
AOL, YHOO, AMZN, EBAY, BCST. . . the list goes on. The big name Internet companies have wooed investors with dazzling 100%, 200%, 300%+ monthly or even weekly returns. Liquid Audio's IPO hit the market last week and its shares opened at $43, almost 200% above its pricing of $15, just to close the day at $36.56. In a similar situation Market Watch's IPO was priced around $25, it opened on its first day in the $80 range, and surged to its all-time high of nearly $100, only to be at $55 today. Mid to long term investors must begin to wonder if anyone besides the initial shareholders are making money on these Internet stocks. Investors are asking themselves "Is the potential rewards in these big name Internet stocks worth the tremendous downside risk, markedly considering the huge gains they have already made?" We feel that due to the extreme exposure of new Internet IPO's and the popular "overvalued" opinion of most financial institutions the greatest opportunity lies is smaller or undiscovered Internet companies.
Playing in the Online Auction Industry
The online auction industry accounts for over 10% of all Internet revenue, and is growing at phenomenal rates of return. The benefits and ease of online auctioning are quickly taking hold, and we have seen companies like EBAY and UBID benefit; with each experiencing revenue growth of over 500% in the last year.
On June 13, 1999, Internet analysts saw first hand the mentality of the typical Internet/online auction site user. As many would recall, on this day EBAY suffered from 22 hours of downtime on their Website. During this time the traffic to rival auction sites surged with some sites receiving nearly a 50% increase! The opportunity is present for competition to gain an edge on these firmly rooted companies as long as they can provide an advantage.
July Performance Pick
-Our Performance Pick already ranks within the top 10 online auction sites and is profitable. Revenue for the 1st quarter was slightly over $200K with Net Income of $17K.
-Marketing and advertising efforts will have a large boost due to the alliance with Interactive Marketing, Inc.
-Management and Board Members form an adept team with experience from Microsoft, NBC, and Ticketmaster.
-Targeted emphasis on Customer Service (product satisfaction, efficiency, and technical support). Poor customer service is the No. 1 complaint amongst Internet ecommerce users today.
-Over 100,000 registered users. Engaging in an industry that is anticipated to grow ten-fold by the year 2002.
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BidHit.com
OTCBB: BHIT
Price: 5.3125
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BidHit.com has grown to become one of America's leading online auction sites and provides users with security, convenience, and lower fees in relation to shipping. Due to a recent private placement funding that raised $3M, BidHit.com has the capital to expand its already proven, successful small scale operation. BidHit.com's business model eliminates warehousing of inventory that relieves excess inventory constraints and the burden on working capital. Their focus on customer service will create a long lasting relationship with dedicated customers who will return time and again due to the unique emphasis placed on their needs.
BidHit.com's recent agreement with DoubleClick will provide increased exposure to both the ecommerce and financial arenas. Furthermore, BidHit.com has formed an alliance with Interactive Marketing, Inc. who has aided in the marketing successes of companies like Yahoo and Lycos. With increased advertising from proven marketers, BidHit.com is bound to benefit from increased exposure.
BidHit.com enjoys the dedication and experience of a seasoned management team. Timothy Black, President and CEO, has tailored his skills while heading up an Internet team at Midisoft Corp. Jeffrey Mendenhall, VP and Director, has led development and research groups at Microsoft while building and testing servers for Microsoft's Worldwide Data Center. Alan Gersen, Director, is a communications attorney and is currently serving as President with Interactive Marketing, Inc. This team has successfully brought BidHit.com through its early stages and is ready to expand the company with its increased capital.
BidHit.com is looking toward its future and plans on expansion. The key areas of focus will be on increasing their customer base, widening the number of high quality auction products, expanding the number of reputable vendors and top manufacturers, and adding real-time daily auctions (up from BidHit.com's current semi-weekly auctions).
BidHit.com a profitable company competing in one of the fastest growing ecommerce sectors. Their current success has been achieved with no significant marketing effort, and the company has established the infrastructure to handle the significant revenue growth expected for the industry. With the IMI marketing alliance and addition of Alan Gerson to the Board of Directors, BidHit.com should increase its brand name and market share quickly. Flourishing from its profitable status, the company should be able to expand margins as product offerings, auction frequency, and site traffic increase, opening the door for exponential revenue and earnings growth. We are adding BidHit.com to the Performance Portfolio seeking long term appreciation.
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