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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Michael Hart who wrote (4612)	2/4/2005 9:46:33 AM
From: Walkingshadow	Respond to of 8752

Upgraded by Legg Mason this morning before the open: finance.yahoo.com Firm has more confidence in Overstock's business today than it did with its initial upgrade in late October, yet the shares are $4 lower. Firm's belief is that a portion of Amazon's (AMZN) issues are being driven by Overstock and feels that Overstock is building a more compelling long-term business than Amazon. Notes that Overstock's revenue is now 12% of Amazon's U.S. gross merchandise value. Overstock's gross margins of 15.2% now exceed Amazon's gross margins of 13.4%. Amazon's reported gross margins appear higher than Overstock due to the fact that Amazon reports fulfillment costs as an operating expense rather than cost of goods sold. Firm expects Overstock's revenue to grow at 60% in 2005 and 45% in 2006, compared to the U.S. ecommerce growth rate in the low-20% area.