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Somebody's betting that ONSL's stock price reaches $120.00 by the third week in January. Purchases of 'far out of the money' call options are often used (and read) as a possible indicator of takeover activity and speculation. FWIW. From what I understand, ONSL is attempting to be for business to business auctions what EBAY is for person to person auctions. ONSL's person to person auction is currently not as strong as EBAYs. But, as B2B is potentially a vastly larger market, ONSL has the ability -- IF THEY PLAY THEIR CARDS RIGHT -- to capture the prize of web commerce. What do I mean by playing their cards right? (1) Partnering with the web's number one site: YHOO. (2) Getting tremendous name recognition, especially as it comes to sales to businesses. (3) Building product value and brand loyalty. (4) Getting an early jump on the competition. Accordingly, shrinking margins on the sale of low end computers, at least to me, is a necessary evil at this point. It's akin to a biotech that has a few decent drugs on the market (that's keeping the company in cash and building its salesforce), with a potential blockbuster like Viagra in the pipeline). Actually, ONSL is in a more enviable position. Where am I coming from? I am primarily a daytrader. I hold very few stocks for any length of time. ONSL, however, is one of them. That said, my position is far from complete -- and I do hope to buy more shares much cheaper. |
