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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: StaggerLee who wrote (740)	2/11/1998 7:49:00 PM
From: Mo Chips	Read Replies (1) \| Respond to of 4903

Hey, you're back there Stagger. And as usual, spouting off with your usual mis-interpretation of the facts... They choose to loose money by choosing to advertise, hopefully resulting in greater brand awareness, higher loyalty, and higher barriers to entry. Where is the flaw in the plan???? I know where one could lie, do you???? Hint: Its not just the spending on advertising, but how effective the ________ is. Can you fill in the blank? Or are you just going to bad-mouth the stock with nothing to substantiate your opinion... One more hint, 2/3 of Onsale's customers are ______? By the way, I ain't no Billy DeLyon, and the lady known as Wall St gonna be singin'.... Look out Staggerlee, for shortin' in a bull market. Mo

To: StaggerLee who wrote (740)	2/12/1998 5:36:00 PM
From: StaggerLee	Read Replies (2) \| Respond to of 4903

Why does this company only derive gross margins of 12%? Aren't they selling refurbished "junk?" Based on this sorry figure, anyone want to do the algebra to determine how much more their sales have to increase to break even, let alone to justify a market cap of $484 million? (Ignore the odd phenomenon that marketing and G&A costs are growing twice as fast as revenues...) Meanwhile, only 70% of the customers are repeat bidders -- the other 30% tried it, apparently hated it, and are gone forever. Ahh, the definition of a dying fad.