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

To: StaggerLee who wrote (896)	3/13/1998 12:27:00 PM
From: Mo Chips	Read Replies (2) \| Respond to of 4903

<<You'll see GM below 8%>> Have you ever taken the 5 minutes it takes to calculate ONSL's margin on owned inventory. You'll see it has stayed pretty close 10% over the long term. Onsales margins north of 11% last quarter and lower relative to prior quarters is due to the incredible growth in owned inventory sales. Bottom line, they have not seen the erosion in margin for the reasons you say. Margins fell due to movement from a consignment model to an owned model, and the decision was a intentional one, GET IT? And don't forget that they are trying to grow the exchange side. This should boost margins.... You frequently post information that errs on the low side, takes facts and misrepresent what they mean, and leave important aspects out of the picture. I know you are a short and don't buy into the concept, but objectivity here is appreciated. Mo