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Technology Stocks : OnSale Inc.

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To: Tom Hua who wrote (2485)12/14/1998 5:25:00 PM
From: D.J.Smyth  Read Replies (2) of 4903
 
Tom <<UBID sales increased 127% from 6.3 MM to 15.3 MM, while ONSL's sales only rose 14% from 50.8 MM to 57.8 MM. No firework there.>>

a market focus to future growth relative UBID vs. ONSL is not comparative sequential sales growth. bottom line is which company moves products at the quickest pace through the channel at X gross profit benefit? UBID competes in the same space for product receipt as does ONSL. Right now the player with (a) the biggest bucks, (b) the biggest market presence, and (c) the most extensive product diversity is winning the lion's share of products to sell. That's ONSL.

ONSL's vacation packages/time shares are fully operational (limited packaging) for the final qtr this year - wasn't the case for previous two qtrs. should add to btm. line. ONSL actually made a profit last qtr. but chose to use the earnings to expand product offerings (put it back into the bus.). Express Bid was nearly 10% of total sales last qtr. (operational for only two months) This qtr. there are significantly more Express Bid items - should help. Number of bids were up 25% sequentially (in two months) before they stopped reporting with the new site.

UBID, the new kid, can throw cash (from the offering) at products to attract intial patronage - but not for long. in six months they'll need to play profit with the bigger boys. As a comparision feature, ONSL has nearly 250 desktops/notebooks from which to choose, UBID, about 40. ONSL offers Networking gear, Servers, Sports & Fitness equipment, digital satellites, musical instruments, etc. UBID, none. ONSL's new agreement with ACTC will bring ONSL into selling a more extensive line of networking along with mainframes. UBID's got a ways to go here.

One thing likable about UBID is its offering of sunglasses. Probably not a big cash item; but ONSL should do likewise.

ONSL wants to attract more women shoppers. They're adding product changes to address this issue (make-up? perfume?. announcements forthecoming.

$33 or less is ugly, but probably correct (not for long though friend)
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