From the Daily IT Investor:
May 9th, 2000
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T H E D A I L Y I T I N V E S T O R
We're buying Airbomb.com Marketing Ltd., trading as AIR on Canada's CDNX and as ABOMF on the OTC.
We're into bicycle sales over the Internet these days, which is why we're nuts about Airbomb.com. The company has a smokin' deal with a Taiwanese OEM, guaranteeing unlimited supply of bikes and components at unbeatable prices (we checked!).
The company is profitable, news is pending, their market cap is tiny, and the stock got sold from $1.35 down to $0.34 during the recent correction. This is the absolute ground floor in terms of pricing.
Airbomb.com is a serious rival to the likes of Fogdog.com (FOGD.Nasdaq.
Recent cls: $3.62). Fogdog has been more or less successful in grabbing market share in the fast growing online sports equipment/accessories trade.
Airbomb.com has taken the opposite approach, focusing exclusively on the hugely profitable bicycle niche. They only sell bikes and components, which is a $5.4 billion per year industry in the U.S. alone. Globally, it's worth some $20 billion. This is a lean and mean business model: Pick one product with a huge market, get in there first, keep your overhead low, and assume total quality control. Bingo! Instant company. It's a great name too.
We just love everything about these guys. They have a sweetheart deal with one of the largest bicycle manufacturers in Asia, Yuh Jiun Industrial Co. and Asama Enterprises Corporation of Taiwan that gives them unlimited product supply at a real discount. And they can distribute them with the company's private label or co-branded.
In other words, they're getting the B2B as well as the consumer markets: Bicycle dealers can order whole bikes or components with their own brand, or Airbomb's. The company has four Web stores, under the flagship www.airbomb.com site.
The stock trades on the Canadian Venture Exchange (CDNX) under the symbol AIR, but they're moving to Delaware and filing their 10SB with the SEC later this month. They will eventually trade on the OTCBB as AIRR but we're not sure when. They're trading on the pink sheets right now as ABOMF.
Airbomb branded bicycles are being used in a big marketing promotion of a new Mazda sports utility vehicle involving dealerships across the U.S. They've also got some bicycle sports sponsorship deals pending.
We've also got word that the company is doing a $1.5 million financing
Which is partially open to sophisticated investors. We're not sure of the details, but we believe they're offering a discount to the market and a warrant. If you're interested in that, call Murray Duncan at
1.800.639.0544 or email mduncan@senategroup.com.
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