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 : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?

To: JJMM who wrote (201)	10/26/1998 5:56:00 PM
From: Kenneth Yeh	Read Replies (1) \| Respond to of 1634

Good Point, I agree...EBAY is our ally. I think the strong upward move by EBAY will ignite the UBID ipo. I'm guessing they will IPO next week given that the market conditions hold up. (Especially the technology sector). Its important to acknowledge the tremendous growth that UBID received this quarter. From $6.8 million in revenues just last quarter to $15.3 million this quarter is simply incredible. I believe UBID's IPO will be a blockbuster just like EBAY. They both have very similar business models and people will begin to recognize that once UBID goes IPO. Also, MALL shareholders will receive 0.8 shares of UBID for each share of MALL they own sometime in the middle of 1999. So the bottom line is, MALL's hidden value in their UBID ownership will be recognized as soon as the IPO occurs. On top of it all, MALL is a profitable company (despite their investment in UBID this quarter) and will continue to be profitable given strong PC and MAC sales. Good luck all! -Kenneth

To: JJMM who wrote (201)	10/26/1998 9:43:00 PM
From: Kenneth Yeh	Respond to of 1634

I listened to the conference call. It went very well. Most of the attendees sounded very pleased with the quarterly results. Here's some key points I'd like to point out: Concerns: 1) Decreasing Margins. This quarter's margins were 11.5%..down sequentially from last quarter and last year. However, management believes that this is as low as its going to get in terms of gross margins. Margins should start to improve in the coming quarters. 2) Increasing costs. MALL has launched the most aggressive sales campaign in the history of Creative. They're aggressively hiring sales people and this may have a toll on the bottom line. Positives: 1) UBID growth and potential. Several attendees (representives from Dean Witter, AG Edwards, etc) asked about the differences between UBID and EBAY (which jumped like 20 points today). All of them seemed to be extremely interested in UBID and its potential. (The representative from Dean Witter jokingly said he'd be very very willing to underwrite UBID's IPO). 2) UBID will be expanding their business into other sectors. They were compared to EBAY many times and since EBAY has a 1.2 billion market cap, one of the attendees said: "Either EBAY is grossly overvalued or UBID is grossly undervalued". 4) All attendees seemed pleased with how the company's operating results were. PC, MAC, and UBID sales all increased sequentially. 5) UBID IPO seems imminent. One of the attendees asked when the IPO may happen and if its as easy as "press the button and go". Management replied with a "yes" and said they are talking to their underwriters (Merril Lynch) almost on a daily basis. 6) Inventories are being controlled according to management. Also, by looking at the quarterly results, inventories rose very slightly from the previous quarter. That's a very good sign. 7) Going forward, management gave the impression that all sales will continue to increase. Creative has launched the most aggressive sales campaign in the history of the company and is constantly hiring sales people. Margins will also increase in the coming quarters (management believes prices are at the bottom). Good luck all! -Kenneth