UBID - an IPO spinoff of Creative Computers Message Board

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Technology Stocks : UBID - an IPO spinoff of Creative Computers

UBID 3.000

0.0%

Jan 21 4:00 PM EST

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To: SHGLaw who wrote (377)	1/7/1999 11:32:00 AM
From: Returnmaven	Read Replies (1) of 581

Quote from the Merrill Lynch Research report on UBID: "At the current share price of $121 1/16, UBID is trading at a price to revenue multiple of approximately 8.1 times our estimate for calendar 1999 revenues. (By comparison Onsale is trading at a forward calendar 1999 concensus revenue multiple of approximately 2.4 times.)" "Given our fundamentally very positive view of the company's business model and management team, we would look to BUY THE SHARES EITHER AT LOWER LEVELS OR WITH THE BENEFIT OF FURTHER STRONG OPERATING PERFORMANCE" What do you think they are saying there. Let me translate: We wouldn't recommend buying now. We may recommend buying if the stock drops or if they perform better than expected. And UBIDs primary competitor ONSL is trading at a valuation approximately 1/3 that of UBIDs highlighting how overvalued UBID is relative to its primary competitor and industry leader. And they further go on to say that even ONSL is overvalued at that price. I am convinced through analysis and logic that this stock is substantially overvalued and will drop. I am short and holding.

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