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Technology Stocks : Cyberian Outpost (Symbol: COOL) -- Ignore unavailable to you. Want to Upgrade?

To: wiz who wrote (1506)	6/8/1999 9:48:00 PM
From: JudgeJudi	Read Replies (1) \| Respond to of 1932

Mark, it doesn't take much nerve to short cool. It has been the safest money since late January. Why is it a good short? This company, when you strip away the BS, is merely a low margin, third tier retailer of pc's. The fact that they use the internet to do their marketing doesn't fix the basic problems with the company. 1. Gross product margins in this business are terrible - under 10 percent. With all of the intense competition, margins will not likely improve. 2. SG&A expenses eat the business alive with only 10 points of GM. There is no hope for profitability. 3. Management is in turmoil. -- the ceo just got the boot upstairs because of the drop in stock price - no replacement named. 4. Advertising strategy is a mess....they've tried everything, but there is no profitable strategy to attract and maintain customers. 5. Insiders are apparently selling in droves - see recent 144's filed. 6. Wall street hates pc retailers.