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Technology Stocks : ASD Systems, Inc. (ASDS)

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To: Schmedley who wrote (393)12/17/1999 12:32:00 PM
From: Gordon Gekko  Read Replies (1) of 491
 
Nice analysis, but there is one significant problem. The loss of E4L is from the first 9 months of 99 and not 98.

In addition, have you seen how razor thin the gross margins are in this line of business. They are extremely small and in order for them to reach any kind of profitability they will have to increase their size exponentially. Take a look at PFSW for a good comparison. They have revenues in the $100M plus category and they are barely profitable.

Unless there is a fundamental change in the order fulfillment arena ASDS is going to have a tough time going forward.
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