I don't think the market doesn't like it. More the market is still in its inet funk and doesn't know what to do with it.
I mean, the numbers are terrific. And having spent some time surveying the various auction sites, including eBay, I must say that I am astounded by uBid. eBay is the online equivalent of a garage sale. Plenty of crap masquerading as stuff people would want to buy. uBid on the other hand is selling real product, has unbelievable bidding action, fetches some damn good numbers for its products and is moving vast amounts of merchandise. Also, there's been a lot of talk about its margins being 2% and hoping to hit 3%. Well, according to the release, margins for the quarter hit 8.5%.
uBid is going to be a cash cow. And as it continues to expand its product line, thereby providing the variety needed to keep people coming back, there will be a geometric progression in its earnings.
And a 69% repeat buyer rate! This is key. People like doing it this way, they come back in droves and that means they are satisfied with the product, the service and the price.
Once uBid completes its infrastructure to accomodate the huge increase in hits (and bids!), this is going to bleed money. Hemorrage money. It won't be able to stop making money.
And while eBay is rife with problems from scam sellers of fraudulent merchandise, uBid will have none of the problems.
The market will get over its funk about inets, as it has proven itself to do time and again, and will give uBid its due. Now would be a great time for ML to revise its rating and come out strong.
SHG |
