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

To: Les H who wrote (2339)	12/4/1998 11:35:00 PM
From: Bharat Bhatia	Read Replies (3) \| Respond to of 4903

Hi! I am wondering if Onsale makes any profit on the products they sell. Some of them are sold at less than 50% of normal retail price. Is their cost basis low enough to cover payroll, sales expenses & so forth. Will they be able to show earnings growth in the future. I think most of us got mislead by their sales figures. There are not too many pure internet companies with sales over 150 million dollars but Onsale's gross profit margin is not sufficient enough at these sales levels. The key is profits. I hope they are able to sell at a profit. Quite frankly, I don't quite understand their business model but do believe internet is the only industry in a deflationary world growing at triple digit rates. Hope these refurbished goods are cheap for them so they can sell at a profit.