Everybody here knows that Internet stocks are speculative, but they are also very flexible. So comments about how uBids business model sucks compared to ebay are ludicrous. They both have their strengths and weaknesses. Ebay does not enforce fulfillment, so their pose a higher risk to customers. Ubid however does have control over this because of their inventories.
Amazon originally had a no inventory model, but guess what they now have millions of dollars invested in a distribution centre.
Ubid's strength's are the size of it's float (only 1.5 million), and its hefty revenues (incidentally which are larger than ebay).
Most people did not want to be thinking about this stock while trying to enjoy Christmas dinner with the family, so they either sold, or their stop loss kicked in.
Ebay's market cap is currently at $ 7,714,564,000, based on a price of 286 and 26,974,000 shares outstanding.
Ubid's market cap is currently at $ 891,511,250, based on a price of 121 dollars and 7,330,000 shares outstanding (85% of which are closely held in the hands of parent company Creative Computers Corp.) leaving around 1.5 million free trading.
So this is the scenario I have in my mind.
Obviously Ebay has major support from analysts, and fund managers.
Currently nasdaq.com does not list any analyst information for Ubid. IMO the analysts are going to jump all over ubid in light of the action we saw pre-christmas. Then these shares might possibly get to ebay levels.
I bought in at 47$ the day of the IPO.
Does anybody have any knowledge of analysts following this stock? |
