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

To: j_b who wrote (1351)	7/22/1998 11:47:00 AM
From: StaggerLee	Read Replies (1) \| Respond to of 4903

>>Since ONSL has already generated a profit, it seems disingenuous to say they can never realistically generate one. LOL! You're the one being disingenuous, by suggesting that $50 grand of earnings right after their IPO ($0.003/share) should be indicative of a legitimate business plan going forward. I might add that they had 15.4% margins back then, too. (Interestingly, even those margins wouldn't put ONSL in the black today, having ramped up their personnel to normal operating levels.) Another matter: The Q1'98 margins were hampered by that reserve for missing inventory. GAAP would require them to take this recovery into earnings in Q2, if indeed the reserve had too much cushion. It will be interesting to see if they try to pass off this recovery as improved operating results in Q2, or if they disclose the fact that Q2 earnings have been benefited by the correction of their bungled inventroy accounting in the prior quarter.