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

To: William Vu who wrote (932)	3/18/1998 9:21:00 PM
From: MARIO PASQUA	Respond to of 4903

I bet UPS must love ONSL. They are the one making a killing. Too bad it's not a public co. ;-(

To: William Vu who wrote (932)	3/18/1998 10:07:00 PM
From: Mo Chips	Respond to of 4903

William, <<How much is the commission fee for a sale of $150?> Why do you assume that all sales are commission based, if you do you are wrong. A shrinking percent of their sales are commission sales... <<(ONSALE has no real estate, no warehouses)>> If they own inventory, then they have a warehouse somewhere. Maybe they don't own the warehouse, I don't know, but it really doesn't matter... Mo

To: William Vu who wrote (932)	3/19/1998 1:39:00 PM
From: Pauly	Respond to of 4903

<Assume that there is one sale per four bids (very far from the truth,> Huh? Look up the numbers from the 4th quarter earnings. There were 728,000 bids and 232,000 orders. This means 1 out of every 3 bids is a "winning" bid. And I'll repeat what I said before. There are already over 1,000,000 bids in the 1st quarter, so by the time the quarter is over there should be +40% more bids than 4th quarter. Accordingly, revenue growth could also be in the +40% range compared to 4th quarter. <Further, assume that the average price is $150, as you claimed.> Look it up: there were $33 million in sales in 4th quarter, and 232,000 orders, for an average order price of $142. OK, my memory was a little off. You seem to be assuming that all of ONSL's revenues come from commission-based sales. This is only a small portion of their total sales. Paul