Hi Kris. You are correct, in stating that an American Co. could come up to Canada and set up shop selling their products in Canadian $'s. As we all know, it happens all the time in the retail world. Take for example WalMart, Chapters, or Home Depot. However, the name of the game is speed. WalMart arrived in Canada and was set up in no time at all. This is because they took over a swak of stores of an existing operation - these were the Woolco stores. For any foreign business (American or otherwise) to set up the distribution and supply lines in our country, well let me tell you it takes time.
If this scenario were to come true, then why wouldn't that expanding company first take a hard and long look at purchasing one that is already established. Hey what about Bid.com? If anyone thinks that Bid.com is not being looked at by a bigger fish, then they had better look again. Remember, consolidation and marketshare will be the keys in 1999.
Looking at this scenario as an investor. This might be a good thing. The stock would POP!!, we might even get some shares of the bigger company, and we would all be happy. Maybe not as happy as if the company grew really big on their own, but I think I would be pleased with the return on my investment.
I know that donkeyman can, and probably will speak for himself, and I don't want to get between two people during a spirited debate. However, I didn't take his comments as hyping. It seemed to me that he is really excited about the possibilities that this company might provide. And I will say it again, you are correct that everyone should walk into any investment with their eyes wide open and look at all the possibilities and probabilities.
Talk to you soon. |
