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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (14456)	11/20/1998 7:25:00 PM
From: Labrador	Respond to of 119973

MALL -- I bought some more after reading the S-1 filing. Tremendous revenue growth -- and the opportunity to expand into other auction arenas. I was thinking that the UBID should be at least a double within days (if not hours) of the IPO. That would put UBID at about $30 a share. Each share of MALL owns about 0.72 shares of UBID. (Distribution probably Summer of 1999). This puts each MALL share at 0.72 x $30 plus the operating assets of MALL of $12.50 value = $34. I suspect that UBID could trade much higher than $30 over time. It seems that this deal is coming quite quickly. And an opportunity to pick up UBID fairly cheaply providing the IPO goes. RESULTS OF OPERATIONS Net Revenues. Net revenues are comprised of gross merchandise sales plus shipping income net of returns. The Company held its first auction the last week of December 1997. For the nine months ended September 30, 1998, net revenues were $24,125,000. Net revenues grew from $157,000 in the month of January 1998 to $5,819,000 in September 1998. Growth in net revenues was due to significant growth in the Company's customer base, an expanded selection of merchandise offered and an increase in the number of auctions per week. The Company intends to increase traffic to its Website, further allowing it to broaden its customer base, increase the number of auctions per week and expand the selection and number of items offered.

To: Paul A who wrote (14456)	11/20/1998 7:27:00 PM
From: Labrador	Read Replies (1) \| Respond to of 119973

MALL -- A little more info from the filing. uBid operates an online auction for excess merchandise, offering close-out and refurbished products to consumers and small to medium-sized businesses. The Company believes that its online auction represents an exciting sales format for users that leverages the interactive nature of the Internet. The Company's Internet auctions feature a rotating selection of brand name computer, consumer electronics and home and leisure products which typically sell at significant discounts to prices found at traditional retailers. uBid currently runs auctions seven days a week, offering on the average over 1,000 total items in each of its auctions. From its first auction in December 1997 through September 30, 1998, the Company auctioned over 138,000 merchandise units, registered over 120,000 users and recorded more than eight million visits to its Website. In the month of September alone, the Company auctioned approximately 38,000 merchandise units, registered over 21,000 users and recorded approximately 1.9 million visits to its Website. The Company operates in the rapidly growing Internet commerce industry. Jupiter Communications estimates that U.S. retail consumer purchases of goods and services over the Internet will increase from $2.6 billion in 1997 to $37.5 billion in 2002. The single largest online retail category in the U.S. is projected to be computers and consumer electronics, which is forecast to grow from $836 million in 1997 to $10.5 billion by the year 2002. The personal computer and consumer electronics markets are characterized by significant quantities of excess merchandise due to extremely short product life cycles and the prevalence of returned items through the consumer retail channel. Because of the highly fragmented and relatively undeveloped liquidator channel, prices received by vendors for excess goods tend to be highly variable. The Company estimates that the value of such products exceeded $4 billion in 1997 in the U.S. alone. uBid's online auctions provide an ideal distribution channel for unpredictable, odd-lot quantities of close-out and refurbished goods. The frequency of the Company's auctions and its ability to continuously add new items allow vendors to dispose of inventory quickly to minimize the risk of price erosion. Online sales also allow vendors to liquidate excess merchandise directly to a nationwide audience, without cannibalizing their primary distribution channels. Furthermore, uBid offers customers a unique retail experience--the opportunity to set their own prices on popular, brand name products with the convenience of shopping 24 hours a day, seven days a week. The element of gamesmanship, combined with an ever-changing merchandise mix, entices customers to participate in the auction in hopes of "hitting the jackpot" and winning a bargain. The Company employs sophisticated merchandising techniques to manage the auction process, which allows the Company to maximize revenues on products put into auction. uBid's sophisticated auction management methodology capitalizes on the Company's direct marketing and merchandising expertise to help predict the level of customer traffic to the Website, the appropriate product mix of each auction and the ultimate price realized on each product. The Company has designed its online auctions to offer a superior customer experience and to encourage repeat visits by customers and potential customers. The Company believes it offers a consistently superior experience to its customers through an entertaining and fast auction process, tight control of the order process and a high level of customer support. Approximately 90% of the products shipped from the Company's warehouse are shipped the next business day after an auction closes. In addition, uBid has established multiple channels for communicating with customers before and after the sale, including telephone, e-mail and online support. The Company has also incorporated other features to encourage repeat visits, including a personalized page with a user's bidding history. Repeat customers accounted for approximately 68% of customer orders for the three months ended September 30, 1998.