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

To: Scott Moore who wrote (1563)	10/30/1998 1:45:00 PM
From: Jim Duffett	Respond to of 4903

It pointed out that Onsale had WEATHERED the price wars on PCs very well and was in a position to capitalize when prices stabilize. As for eBay, lets not jump the gun. Had they remained $1 billion or less as a market cap, you might overlook them in the big scheme. At $3-4 billion they are fair game. In 6 weeks Yahoo! Auctions has grown to 50,000 open auctions and is increasing at a rate in excess of 30% per WEEK. They offer free listing and are now gearing up a preferred vendor program that will increase listings dramatically. eBay has 1,200,000 registered bidders. Yahoo! has 145,000,000 page views per DAY. If Yahoo! chooses to put the effort and marketing into their product, it will, over time, bury eBay. With a $3+ billion prize at stake, I'm guessing that is just what will happen. Oh, and um, every single page in Yahoo! Auctions has that little banner up top. You know...the one that says: Powered by Onsale. Go Onsale.

To: Scott Moore who wrote (1563)	10/31/1998 11:18:00 AM
From: weatherman	Respond to of 4903

Scott, Your point is well taken ... thanks! It will be interesting in the longer term (next few years) the see how all of the internet auction sites survive in a very competitive and rapidly changing / growing internet environment. Shorter term ( 3 - 6 months) it is my opinion that EBAY is now over valued and that ONSL is undervalued at this point in time. In the next several weeks I would expect ONSL to test its upper resistance area of $25-26 due in part to exposure in Business Week, the Yahoo Auctions which ONSL powers, and eventual news detailing ONSL's new industrial auction site. I am long on ONSL from $16 and would be thrilled to take profits in the $25-26 area. Good trading all!