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If you had $10,000 to invest in the stock market and your choice was to invest it in a new complex of bricks and mortar stores across Canada valued at half a billion dollars, or a new internet e-commerce company with a good business model valued at the same price, which would be your choice? Internet competition don't have those huge capital expenses in those bricks and mortar buildings. They don't have the huge heat and light bills, high insurance costs, storage buildings, fleets of trucks, etc. etc. There are 67,000 people joining the internet everyday. That has to make them nervous. They also see products sold on line undercutting their prices. So, those bricks and mortar companies haven't have it too rosy either. Starting off in the e-commerce business no doubt costs millions, but once your name is established, if you're not eaten up by other internet companies, you could be home free. The exciting thing about the e-commerce companies is new technology seems to be coming on stream practically every month. When this new moving picture to picture and live audio and entertainment kicks in, it should give this whole new technology a major boost on the internet. |
