Bid.com International (BIDS) Message Board

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Microcap & Penny Stocks : Bid.com International (BIDS)

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To: IdiotJed who wrote (2793)	12/3/1998 8:30:00 AM
From: L M	Read Replies (2) of 37507

Negative report issued from Taurus Capital Markets Ltd analyst in this morning's National Post. Adam Adamou, the analyst in question, has apparently issued a research report stating that the shares of Bid.Com International are well overvalued and completely out of whack to other comparable Internet stocks such E-Bay and OnSale. Basing his comments on 1998 figures and estimates for BII, EBAY, and ONSL, he is calculating a gross margin of 2.65% for BII, compared with gross margin projections of 87.7% for EBAY and 11% for ONSL. Based on last Friday's close, indicating a market capitalization of $235 million, Adamou claims that BII was trading at a multiple of 436 of projected net revenues for '98. He compares this to a 82.1 multiple ratio for ONSL for the same comparative periods. Blames recent share prices of BII on momentum and day trading, and compares it to a game for "fools" and "greater fools". Adamou says that BII may climb to $7.00 because of "the greater fool" theory. "At the end of the line you've got the fools and the greater fools. A lot of people are buying hoping that a greater fool will take them out. The problem with that is who is going to be the last fool".

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