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Microcap & Penny Stocks : Bid.com International (BIDS)

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To: Ruyi who wrote (7011)1/22/1999 9:23:00 AM
From: Mr. Forthright  Read Replies (3) of 37507
 
Do you mean to say that their gross profit margin for the first 9 months was only 2.11% ? If the expense line remains the same (roughly $4.5 million per quarter or $18 million per year) and the gross profit margin remains the same that would mean a $900 million revenue break even point:

Revenue: $900 million

Gross Profit: $18.9 million

Expenses: $18 million

Net income: $900,000

What does that tell me? The issue investors have to focus on is: how will BII increase its gross profit margin? I am not suggesting that they can't, I'm sure they have a plan. What I am saying is that it is a key consideration.

Waldo, Kevin, chief, any idea?
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