Hello SI posters,
I am new to SI but have been lurking for some time. I recently made a post on RagingBull. I have been a recent addition to the Bid.com family (bought in luckily at the close of last Monday at $7.80 Cn). Obviously, I have been elated with the past week's price performance. However, I must state that I was not overly surprised. In my opinion, BII CN (sorry still used to Bloomberg tickers!), was grossly undervalued, and the company greatly misunderstood. I have been fortunate enough to have met the management of Bid.com prior to my making a personal investment decision. What compelled me to purchase the shares was the fact that the mgmt. has hit some critical milestones since my last meeting with them; giving me faith in their capabilities. Furthermore, as I understood their business plan, I likened them to a IT service company with a steady revenue stream coming in the way of licensing revenues. Additionally, their technology is a great barrier to entry (their Dutch Auction is patented). In fact, when I first heard of the Ebay rumor, I gave it serious consideration. The reason was that I had heard that Ebay had been recently sued by a private firm for patent infringement. My logic allowed me to envision a scenario whereby Ebay purchased Bid.com if not for its international presence, then for its patent portfolio. Separately, their opening of the Dublin office will allow them to capitalize on a lower corporate tax rates (Ireland is the Delaware of Europe). Overall, this is a solid management team and I believe when evaluating companies in such volatile, uncharted and uncertain industries, the managment team should be given the highest consideration. Best of luck to all.
Cheers |
