Most overlooked E-tail stock=BGST......#25-27 important.........................................
45 REASONS WHY YOU SHOULD BUY BGST! (10/13/99)
by sarco (ragingbull.com BGST thread)
1. INCREDIBLE (almost crazy!) low price ($5 23/32 / share)
2. SMALL market capitalization (48.609 million)
3. TINY share float (2.5 million)
4. HIGH buyout probability
5. HUGE market opportunity since no one has been able to achieve what BigStar.com has done in
terms of growth and absolute visitor traffic to a Web site devoted to filmed entertainment, which is
an industry that, in this country alone, will soon be worth well over $10 billion a year
6. ONLY filmed entertainment e-commerce company to go public
7. EXPERIENCED senior management (CEO David Friedensohn - Former CEO SonicNet, VP
Prodigy, Director of Corporate Development Viacom; VP David Levitsky - Former Marketing
Director Columbia House, Responsible for starting Columbia House's online video operations,
Columbiahouse.com; VP of Site Development Brooke Bessert - Responsible for helping build
Columbiahouse.com and Barnesandnoble.com)
8. PHILOSOPHY of senior management (Ideas are cheap, execution is everything)
9. INSIDER trading (100,000 shares bought during August)
10. DEVELOPMENT of innovative BigStar Direct e-mail software, which allows BigStar to
customize promotions to individuals based on what an individual has looked at and what they have
bought previously (800,000 names in their e-mail address list)
11. COLOSSAL expansion possibilites into different product areas that are adjacent to filmed
entertainment that also have to deal with popular culture, Hollywood, and celebrities (For example,
movie books, movie soundtracks, movie memorabilia, movie posters, etc.)
12. ENORMOUS appeal in foreign markets (Filmed entertainment is one part of the american
economy that appeals the most to consumers that are outside North America)
13. MORE people now purchase their filmed entertainment products rather than rent them
14. FOUR major Web sites to target purchasers of filmed entertainment products (Bigstar.com,
the main web site, includes feature films, TV shows on video, and educational, health, fitness, and
instructional videos; ABCBigstar.com, a children's Web site that targets the very important filmed
entertainment market for children; BigstarDVD.com, which focuses on DVD enthusiasts; and
Astrofile.com, a content-only Web site that's designed to attract customers to BigStar.com by
having a wealth of information on Hollywood celebrities
15. 100,000 TITLES for sale (All formats including videos, digital videodiscs, or DVDs, and
laserdiscs)
16. NO inventory or brick and mortar warehouses (BigStar has software which allows them to
access multiple warehouses and multiple wholesalers on very advantageous terms so that
inventory does not have to be carried)
17. ONLY 55 employees on the payroll
18. PARTNERSHIP with Yahoo!, where BigStar has developed a chat celebrity series (Once a
week or so BigStar interviews on-line, live, a real celebrity who will answer questions directly in real
time; Allows promotion of brand name on Yahoo! and opportunity to get e-mail addresses from a
very significant population)
19. EXCLUSIVE filmed entertainment e-commerce partner for MovieFone.com, a wholly owned
subsidiary of America OnLine, the largest proprietary on-line service (AOL owns 2% of
BigStar.com)
20. EXCLUSIVE filmed entertainment e-commerce partner for Earthlink network, the largest
internet service provider (ISP)
21. VERY CLOSE relationship with Women.com, the largest women's site on the Web (The CEO
and chairperson of Women.com Networks, Marlene McDaniel, is on the BGST board)
22. NUMEROUS co-promotions with Mail.com, one of the largest free e-mail services on the Web
23. STRONG second quarter financial results (Revenues increased 106.5% to $3 million for the
quarter; Gross margins increased from 13.8% to 14.8%; Sales and marketing expense, as a
percentage of revenue, declined to slightly over 100%; Third quarter financial results will be
released during the third week of October)
24. SUBSTANTIAL cash resources (According to publicly filed documents with the Securities &
Exchange Commission, BigStar.com currently has well more than 12 months of capital)
25. STRONG BUY recommendation from Prudential Securities
26. BUY recommendation from FS Van Kasper
27. BUY recommendation from Wasserstein Perella Securities
28. ANNOUNCEMENT of a strategic content and commerce agreement with FortuneCity.com
(BigStar will be the exclusive video/DVD retailer)
29. ANNOUNCEMENT of confirmation as the number one online retailer of movies both in terms of
traffic and actual purchases by Media Metrix, NextCard and PC Data
30. ANNOUNCEMENT of global expansion with international partnership with UK-based
BlackStar.co.uk
31. ANNOUNCEMENT of a marketing alliance with America Online
32. ANNOUNCEMENT of a strategic content and commerce agreement with Spree.com (BigStar
will be the exclusive video/DVD retailer)
33. ANNOUNCEMENT of a strategic content and commerce agreement with Gay.com (BigStar will
be the exclusive video/DVD retailer)
34. ALERT from Dayinvestor.com (BGST could pick up steam on soaring DVD sales)
35. ALERT from Briefing.com (BGST will gain visibility as perennial e-commerce Christmas rally
approaches)
36. ANNOUNCEMENT by Sanyo (Will begin producing DVD players)
37. ANNOUNCEMENT by Sony (Playstation2 will support DVD-format)
38. ANNOUNCEMENT by Jupiter Communications (online video market was estimated to be worth
$50 million in 1998 and is expected to reach $575 million by 2002)
39. ANNOUNCEMENT by Jupiter Communications (1999 holiday online sales will double to $6
billion and new online buyers will drive retailers success well past holiday season
40. SURVEY by Greenfield Online (70 percent of Internet users planned to do some or all of their
holiday shopping online)
41. SURVEY by Forrester Research (U.S. online retail sales should reach $20.2 billion this year as
7 million Internet shoppers make their first electronic commerce purchases)
42. DEVELOPMENT of efforts into direct download of films has been started (Because of bandwith
constraints, if BigStar.com owns the customer information, copyright owners will want to use
BigStar.com as the interface for selling their movies to the local customer to insure the accurate
matching of products to customer)
43. POKEMON videos for sale
44. POPULARITY of videos, digital video discs (DVDs), and laserdiscs as Christmas gifts
45. CHRISTMAS rally coming soon |
