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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (25227)11/6/2006 4:55:03 PM
From: Carl Worth  Read Replies (1) | Respond to of 78742
 
OSTK doesn't sell enough merchandise to be profitable in their current business model...frankly, i wonder if they ever could, as they would have to well more than double sales to even come close to breaking even

other retailers have huge economies of scale to overcome their fixed costs, or they have niches they can exploit to achieve higher margins...a few even have both...OSTK has neither, and is unlikely to ever achieve either

OSTK excels at three things: diluting their stock, losing more and more money, and providing entertainment as they battle the "sith lords"

with all the excellent retailers out there that can be invested in, i can't see where OSTK has much appeal

JMHO of course