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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: JEFF CHAPMAN who wrote (8795)	5/15/1998 12:15:00 AM
From: Postman	Respond to of 18691

For anyone looking for a stock that has been shorted already, UPPI is supposed to have a big short position and should bounce. Was $2.08 last week, now .69.

To: JEFF CHAPMAN who wrote (8795)	5/15/1998 8:34:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

Jeff, very interesting info on CDNOW. Having multiple fronts for a single business is a well known trick, often used in "escort service" and "massage" businesses.

To: JEFF CHAPMAN who wrote (8795)	5/15/1998 2:40:00 PM
From: FruJu	Respond to of 18691

I don't believe this is multiple companies. Instead, as I understand it, nearly all the online CD vendors use a single distribution house (which yes, is based in Woodland, CA). There was some info on this on news.com last year. E>

To: JEFF CHAPMAN who wrote (8795)	5/15/1998 3:38:00 PM
From: BelowTheCrowd	Respond to of 18691

The "standard" e-commerce business plan is NOT to actually own any infrastructure or inventory. They expect that their success will lie in being the conduit for orders, and that all orders will actually be shipped by a third-party distribution house. Much of the hope for their success lies in the fact that with minimal physical assets, they can keep the overhead quite low. Of course, this makes barriers to entry quite low as well. ANYBODY can make a deal with the same distributor. It also begs the question of why the distributor shouldn't set up a web-page of their own, and cut out the middleman. The internet is largely about DISintermediation: Direct contact! Interestingly, AMZN's recent debt offering was to support construction of their own physical distribution center. A clear break from their "low overhead" model. It really begs the question of why they think they can beat companies like B+N or Bertelsmann, whose strength is in optimal use of distribution facilities... mg