<<have even been to the site. I have been there too, and it sucks.>>
obviously, sales of over $500 million annually (this qtr included)with comparable "auction" margins say differently regarding their product offerings. the market cap of $725 million relative to sales is still small compared to most nets. i've looked at their site and didn't find that it "sucks" as you say. Computer Shopper named it the best place to buy software in November.
dljdirect.com
They actually made money last quarter which MOST other nets can't claim:
dljdirect.com
Other salient points are that a) over 1000 software titles are downloadable, b) they have an international sales presence - a fact which escapes most net stock buyers is that MOST net auction companies WON'T ship outside the continental US - this appears not to be the case at MZON since it has a relationship with 16 countries worldwide, c) they have a strong relationship with Apple - Apple announced yesterday that iMAC sales were extremely robust - so this only speaks well to MZON's current quarterly earnings sales/earnings - iMAC sales were up substantively from last quarter as well, d) MZON is NOT giving up their currently prosperous catalogue business, so..., product sales transfer from mail-in to the net should only help increase MZON's bottom line by decreasing costs. their balance sheet shows they still have work to do (but substantially less than most other nets), but, with their entry on the net, they could also take business from eggs and others. currently, then they could be classified as one of the leading net PC retailers with a market cap 1/3 the others (and they're making money, whereas others...)
obviously, some of these auction nets will merge in the near future. game is to pick the winners. MZON has some good qualities that would select it as being among those winners. |
