NRMI, another internet play, low float, 4.7 million shares.
Mentioned by Herb Greenberg on TSC today:
(NRMI:Nasdaq) is about to roll out an
Internet site that may be worth watching.
Before I get into this, I should warn you
that this is a small stock with not a lot of
float. Unlike other sites run by record
retailers, its will be mostly geared for the
record-retailing trade. Starting today, the
company will open its site to record stores
that want to find buyers, among other record
stores, of CD inventory that hasn't sold.
"We'll be like a market maker," says CEO
Bill Teitelbaum. Is it a big deal? Years ago
record retailers could buy as much as they
wanted, and return whatever didn't sell
without paying a penalty. Now, they can
still return whatever they want, but they'll
pay penalty fees and risk losing out on
co-op advertising. Their only alternative is
to sell the overstock to a liquidator or
reseller. Now, by paying a 2% to 5%
commission, Teitelbaum says he'll find a
home for the records. If it works, he thinks
the concept could apply to other nonmusic
products, like cosmetics. |
