No.
I think MALL played some very creative accounting games, which are totally legal, but which gives false support to its stock.
People aren't buying this stock because they think the company has a good future. They are trading it. hoping for a quick buck.
MALL is in a very commodity market. They compete directly with MicroWarehouse, PC Connection, PC Zone (MZON), CDW (Computer Discount Warehouse) and a slew of others.
They compete indirectly with Cyberian Outpost, Egghead, BID.COM, BUYCOMP.COM, etc.
In the auction arena, they compete with big daddy eBay, OnSale, etc.
I get MALL's catalog every month along with PC Connection, PC Zone, MicroWarehouse, etc.
They do not have the best prices in this group. PC Connection does.
This is a crowded market getting more crowded every day and there is going to be a lot of shaking out. MALL does not stand out.
So, they opened up an online auction. They postponed the IPO because market conditions weren't rosy. They waited for them to be rosy. So, they get an unrealistic value for UBID. Market conditions will soon enough get less than rosy, and the price will come way down.
When all is said and done, eBay is the only online auctioneer with a good business model, and I think they are going to smoke everybody. (Too bad their stock is in the stratosphere.) |
