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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: James who wrote (3068)	12/5/1998 3:28:00 PM
From: Wizzer	Read Replies (1) \| Respond to of 37507

To all: I posted this on another thread. 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 and believe there are fundamental errors in his calculations. 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 92 range. Bid.com is currently valued at $3 CDN per share ($2 US), 20 million shares and gross margin of $530,000 on around $20 million in sales. Around 2.65% of sales. Don't have any figures on price to book ratio. The figure of 87.7% gross margin for Ebay is way out of wack. Gross margins would have to be almost 900 million for this to be accurate, if my understanding of it is correct. That's simply ridiculous! He also made comments about P/E ratios, which may have a discrepancy. Current P/E ratio for Ebay is over 2700 and Bid.com has no P/E as far as I'm aware. This is where I got my detailed info. on Ebay, will try and find the same for BII. P/E ratio in this chart is 2791. Market Cap on Ebay is 7.53 billion dollars ($US). biz.yahoo.com 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. 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