Max <<was bought up at furious rate on Wednesday because and only because people reacted to the words Auction Web-site--this web...to be a very inferior site--they were making jokes about it this morning on CNBC--noting that there were apparently only 6 items up for auction---it is the web-site that is fluff>>
Zones.com was awarded the best place to buy software on the net in November. The company got my attention because of this award. Zones.com sells over 50,000 items - not just the twenty or so auction items. The stock shot up for more reasons other than "web, auction" - a) it has been overlooked, b) undervalued relative to its peers, c) a great place to shop on the web for systems, software, PC & MAC, (d) one of only a handful of truly international web selling sites, and e) a money making operation that has been turned around by its relatively new CEO who has grand schemes looking ahead
dljdirect.com
You're referring to their newly established auction site, a sub-site of zones.come...If COOL, AMZN, EBAY, ONSL, and a hassle of others can be awarded significant premiums for losing money, then MZON, PCCC and other net sellers should be awarded similar premiums for making money. MZON lost money the last year due to a Apple heavy product mix which they've recently corrected with their new CEO. Zones.com has been net active for over a year and has more overall net sales than does UBID (and many others), and, as you'll see this quarter, more than COOL (it has 8 times more overall sales than COOL - it will also show earnings, something COOL doesn't have!). They are a direct marketer, as is Dell - why is this form of marketing a joke? A main source of sales for them has been the educational institutions, to which they've shown themselves to be very adapt at marketing - not only in this country but abroad. The net/education combination could be a real winner, auction house or no. MZON also sells to 16 countries outside the U.S. Name the other net players that ship outside the U.S. via the net, auction or no. Only two or three by my last count. UBID, PCCC don't. Certainly the stock shot up about the same time they made their announcement of their auction site. But, in my simple estimation the stock was way undervalued at $15 and remains so at $30 relative to its money losing competitors. Please illustrate for me a valuation model of this company relative to its peers which would make this company more of a joke. PCCC is another stock significantly overlooked and undervalued relative to its peers. MZON has the education connections which PCCC does not, but PCCC has more overall sales and earnings, so, frankly, both have great potential.
Do you know how long it will take its competitors to establish a shipping relationship with 16 countries abroad? This international connection places MZON about a year ahead of its competitors.
There's probably coming some consolidation in this area, and MZON has many of the qualities of a winner. |
