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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: Leo Francis who wrote (1356)4/1/1999 8:32:00 AM
From: JudgeJudi  Read Replies (1) of 1932
 
Product margins increasing?? Right, next thing we'll hear is that we are winning the war in Kosovo.

The sad reality is that product margins declined this quarter. Its not difficult to comprehend. Just look at the last 2 10Q's and you will see that gross profit margins dropped by half a point. Advertising allowances decreased - vendors are getting squeezed. Buy.com now sells at 0 margin. Onsale does the same. IBM lost almost $1 billion in the pc business last year - due to reduced product margins.

A question - didn't the exalted Peck tell us that leather computer cases were going to increase margins? How many cases did cool sell?

Another question: which market is bigger for cool - the auction site (now listing 11 items for sale) or the leather computer case business. WOW, both sure are impressive.

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