To all,
I believe many bought into Ubid thinking that it is the next eBay.
While they may both be online auctioneer. There are many distinct and vital differences. They have completely different models. UBid specializes in used surplus computer equipment. It buys the merchandize from the seller - a process that requires inventory, labor, insurance, and real estate costs - then sell it to the bidder. The exponential growth factor is limited as opposed to eBay.
If you have not thoroughly reviewed the company's financials, business plans and models, and it's growth potential - and are buying Ubid on the assumption that UBid will be the next eBay, you may want to do that and see if you can reaffirm that conviction.
I'm not saying it couldn't be the next eBay. But that's an assumption you should come to on your own after some deliberate due diligence. If you've done that, I respect your position and conviction. If you haven't, it could only help you.
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Following are my research into the company:
This is short for the sake of the disinterested.
If you are interested in the full list, please PM me.
I'll be happy to e-mail it to you.
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A Link to UBid's SEC Statements
sec.gov
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uBid IPO not for individual investor-Barron's
(Reuters 11/29 14:50:26)
NEW YORK, Nov 29 (Reuters) - uBid Inc. <UBID.O> is expected
to be a "screamer" of an initial public offering, but there is
little for the individual investor currently in the stock, the
financiual weekly Barron's said in its Nov. 30 issue.
The online auctioneer is different from the hot eBay Inc.
<EBAY.O>, namely because it has no profits and faces
competition from players such as OnSale and Z-Auction, Barron's
said.
uBid, of Elk Grove, Ill., acts like a clearance house for
computer and high-tech vendors. It plans to offer 1.58 million
shares at $13 to $14.
The company plays into the continued fervor for Internet
IPOs, but individual investors may want to stay out for at
least two earnings periods, Barron's said.
((-- New York Newsdesk 212 859-1700))
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Copyright 1998 The Washington Post
The Washington Post
December 24, 1998, Thursday, Final Edition
HEADLINE: S&P's Choice of AOL Adds Fuel to Internet Stocks' Fire
......In the last two weeks, the shares of uBid Inc., an Illinois online auction company, have gone from $33 a share to $188, gaining $53.50 a share yesterday. The company reported revenue of less than $25 million in the third quarter of this year and lost money, but as of yesterday its stock was worth $1.6 billion.......
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Copyright 1998 Gannett Company, Inc.
USA TODAY
December 24, 1998, Thursday, FINAL EDITION
SECTION: MONEY;
Pg. 1B
LENGTH: 417 words
HEADLINE: Prices soaring for Internet sales site stocks
BYLINE: Sandra Block
BODY:
With only one on-line shopping day until Christmas, shares of
uBid, a new Internet auction company, rocketed 40% to $188 a share
Wednesday, up 1,153% from its initial offering price of $15 on
Dec. 4.
A week ago, you could buy it for $36 a share.
Analysts attribute investors' enthusiasm to the boom in Internet
shopping, which has boosted shares of companies such as Amazon.com,
eBay and iMall. But they warn that come January, on-line stocks
could fall faster than needles on a dried-out Christmas tree.
"These stocks have moved quite a bit based on speculation regarding a strong holiday shopping season," says Andrea Williams, analyst with Volpe Brown Whelen & Co. "So the risk is that sometime
during the first quarter, we'll see a sell-off in general."
Williams attributed the enormous enthusiasm for uBid to the recent success of eBay, an on-line auction site that lets collectors
buy and sell everything from antique pottery to neon beer signs.
Like eBay, uBid is an on-line auction site, but its specialty
is closeout computers, refurbished office supplies and consumer
electronics.
Wednesday's Internet explosion took place amid a broader market
rally that propelled the technology-heavy Nasdaq composite index
and the Standard & Poor's 500 to new highs. (Market Watch,
3B). Creative Computers, which owns about 80% of uBid, closed
at $59 11/16 Wednesday, up 12 49/64. The company intends to spin
off the uBid shares to its shareholders next year. That means
investors who really wanted to own uBid could have bought Creative
Computers shares for a third of the price.
But that kind of logic eludes many Internet stock buyers, says
Fred Hickey of The High-Tech Strategist.
"It's just their (uBid's) turn," he says. "Some days it's eBay.
Some days it's Amazon." The buying, he says, "has nothing to
do with anything fundamental."
Meanwhile, two other companies saw their stock jump after announcing
ventures into Internet commerce:
* Multiple Zones International, a direct marketer of personal
computers and software, rose 367% to $56 a share Wednesday after
the company said it launched an auction site on the Internet to
boost computer sales.
* Shares of Zapata doubled to $14 1/4 after the fish oil
and meat casings company announced a "relaunch" of its Internet
initiative. Zapata backed out of 31 deals to buy various Internet-related
companies in October, sparking a raft of investor lawsuits.
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