I shorted a little ONSL this morning at 31.
They expect to break even in 1999?!?!? AMZN junior IMHO.
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Company Press Release
SOURCE: Genesis Merchant Group Securities
Genesis Downgrades ONSALE to Long-Term Buy From Strong Buy
SAN FRANCISCO, April 8 /PRNewswire/ -- Genesis Merchant Group Securities today lowered its recommendation on
ONSALE, Inc. (Nasdaq: ONSL - news) to Long-Term Buy from Strong Buy. ONSALE conducts auctions over the Internet
that enable businesses to sell excess goods and services at attractive prices for them while providing value for customers.
Genesis analyst Barry Sosnick revised the rating because the stock has more than doubled in price since late last year, while
new product lines have not been introduced as quickly or developed as fully as anticipated over the last few months.
''ONSALE has the makings of a powerful growth retailer, and announcements of significant enhancements to the company's
merchandise strategy might come soon. For that reason, we remain confident about the long-term prospects for the stock, and
rate ONSALE a Long-Term Buy. If a pullback in the stock should occur, we anticipate redoubling our efforts to accumulate
positions in ONSALE,'' said Barry Sosnick.
''In 1997, ONSALE's auction concept for hardgoods and services rang up gross merchandise sales of $116 million, and we
expect sales to reach nearly $224 million in 1998,'' said Barry Sosnick.
A loss of $0.60 is estimated for 1998. ONSALE anticipates reaching the break-even point in mid-1999, and is projected to
produce profits of $0.16 per share for 1999 and $0.51 per share for 2000.
SOURCE: Genesis Merchant Group Securities |
