Michelle, I think you're absolutely correct. fatb are different than amzn and bnbn. Right now, off the top of my head, they operates internal stores for CSCO, SUNW, NT, AT&T, Oracle. This pipes allows they to offer many interesting products both to the captive customers, employees of these firms, and from these customers to each others. Yesterday's announcement is just an example of the possibilities. These products command a much higher margin than the NY Times best-sellers. After all, the employees are not using their own money to buy these info and their companies are willing to pay.
I learned not to trade against Mr. Tom Hua, however, in this instance I think he and other shorts don't quite understand the fatb model. Since I missed this train, I do hope the shorts win a little so I can board.
cheers,
tt |
