PJD, after all OnSale is just as much an e-trailer as EBAY and AMZN, if these stocks can soar so much in one day and never ever be downgraded, infact being upgraded to $150, $200, $400, (geez,, what next!) , why cant we see a 20 point gain in ONSL without it being downgraded ?
I've 70% of my portfolio in ONSL at this time, I can't put in anymore.
I got in initially thinking it was a competitor to eBay. I later realized the diff between p-p and b-b auctions. I read about its deal with VerticalNet and the industrial website. I turned from being a trader to an investor.
Having said that however, I still stick to my conspiracy theory, I still believe a huge run-up in stock price and a heavy market cap is a tremendous asset for any internet company since it provides them opportunities to grow through strategic acquisitions, its these institutions and brokerage firms that have made the AOL, YHOO, AMZN, EBAY what they are today.
For example AMZN stole Junglee for about 200 mil, huge sum of money to pay if you are a small fry like ONSL is today, but at AMZNs then mkt cap it was chickenfeed, and look what junglee did to AMZN, it converted it from being a simple book, CD seller, to something like a Walmart, now companies are dying to advertise their products for comparion at AMZN... AMZN gained a mkt cap of at least 7-8 Billion by buying out a company at 200 mil.
OnSale can have a great business idea and a model, but if it languishes too long at these levels, and is unable to get their industrial site going which they have been workingon since July, how much longer do you think eBay will wait till they snatch a small company like a VerticalNet, and be an overwhelming competitor to Onsales industiral business ??? I bet eBay would soar to $400 on that day and Onsale would drop to 5 bucks the same time.
Remember its not all about ideas, its even timing. OnSale stock price better catch up to eBay. And it better happen soon or it might never happen. |
