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To: keith massey who wrote (813)	12/4/1998 4:08:00 AM
From: Wizzer	Respond to of 62348

To all: I may have made a mistake in the following. I had a look at the article on BII from the guy at Taurus Capital and am somewhat confused. I don't quite understand the math he used to come to his conclusion. biz.yahoo.com Based on estimates for 1998, he calculated a gross margin of just 2.65 per cent for Bid.Com, compared with 87.7 per cent for eBay and 11 per cent for Onsale Inc. I think what he is saying is bulls**t, comparing the two. E-Bay is valued at around $280.5 CDN per share ($187 US @1.5 CDN to 1 US), over 40 million shares outstanding, something like 37 million gross margin on 1 billion sales. Around 3.7% of sales if this is a valid calculation. Book value is around $2 something with a price to book ratio in the high 90 range (actually believe it should be higher). (Sorry rough numbers from my memory-check if you want specifics) Bid.com is currently valued at $3 CDN per share ($2 US), 20 million shares and gross margin of $530,000 on around $20 million in sales. Around 2.65% of sales. Don't have any figures on price to book ratio. He also made comments about P/E ratios, which may have a discrepancy. Which one appears over-valued? Unless I am making a large mistake, and there is another element I haven't looked at here. I don't know how he arrived at his conclusion, and would appreciate some feedback. Am I not interpreting his calculations correctly? Regards, Wisam

To: keith massey who wrote (813)	12/4/1998 4:31:00 AM
From: Wizzer	Respond to of 62348

Addendum: This is where I got my detailed info. on Ebay, will try and find the same for BII. P/E ratio in this chart is 2791 (???-this must be a mistake) and a correction the Price/Book value is almost 92. Market Cap on Ebay is 7.53 billion dollars ($US). Adam Adamou of Tauras capital wrote: Bid.Com was trading at a multiple of 436, 60 per cent more expensive than EBay. As far as I know Bid.com doesn't have any earnings yet, so how does a P/E apply here unless something has changed recently. biz.yahoo.com I don't understand this apparent discrepancy. Regards, Wisam