Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mo Chips who wrote (890)	3/13/1998 3:17:00 AM
From: StaggerLee	Read Replies (1) \| Respond to of 4903

>><<gross margins ONSL is generating on its sales (i.e., it's like 10% and falling.)>> Staggerlee, please post facts, not your opinion. Yes, their margins have fallen. But not below 10%. Get it straight, dammit.<< Read before you get hyper, dude. My statement is factually correct. Q4 Gross margins were,like, 10% (i.e., plus or minus 1%, I don't have the figures here), and they are without question FALLING as a result of ONSL's changing distribution system, which involves taking ownership of stock prior to sale (which entails shrinkage, obsolescence, warehousing, cost of capital, and other risk factors that perhaps only we "bean counters" understand. You'll see GM below 8% by Q3 '98, I suspect.) Show my the profitable pro forma P&L, man. I need a good laugh.