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Technology Stocks : Cyberian Outpost (Symbol: COOL)
COOL 0.103+10.6%Sep 5 5:00 PM EST

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To: Ron who wrote (1075)2/4/1999 10:59:00 AM
From: JudgeJudi  Read Replies (3) of 1932
 
How can COOL increase margins? No way. WAKE UP INVESTORS!

This is pure management BS design to prop up the stock price so insiders can bail out.

Back to the question - how to improve product margins. Lets see. Onsale just opened a site where they sell product AT COST. 0 margin.

And CompUSA just reported numbers today, and margins were --- guess what?? -- down significantly due to competitive pressures.

So, do you believe COOL can increase prices in the wake of this increasingly intense competition?? NO WAY.

And, as for the new direct mail campaign. COOL managers came from Microwarehouse, a direct marketing company. The reason COOL has tried everything else under the sun, including TV advertising, is that the know from experience that direct marketing cost run anywhere from 10 to 60 percent of sales. Now tell me you pathetic COOL boosters, how do you make a profit with 10 percent product margins, and marketing expenses running north of 20 percent???
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