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Technology Stocks : Cyberian Outpost (Symbol: COOL) -- Ignore unavailable to you. Want to Upgrade?

To: Nelson Chang who wrote (440)	12/7/1998 10:03:00 PM
From: Nelson Chang	Read Replies (1) \| Respond to of 1932

November 23 CEO Interview @ vcall.com. It's about 17 minutes long, and the CEO talks about the company history, advertising, institutional investors, and profitably. A good 17 minutes of research of this stock whether you're long or short.

To: Nelson Chang who wrote (440)	12/8/1998 3:47:00 AM
From: Elroy	Read Replies (1) \| Respond to of 1932

<<It's incredible that this stock only has a market cap of $500 million, because all COOL has to do to even justify that valuation is make $1.37 million/day, which is not far away. And we all know that internet stocks have market caps in multiples of revenues. >> You got this a bit wrong, because some of the Internet stocks that are trading mainly on revenues (YHOO, for example) have a very large gross margin, meaning that a large % of their revenues have the potential to hit the bottom line as profit. When revenues go up quickly, profit also goes up very fast. In COOL's case, the gross margin is very low (maybe 10%), so as revenues go up the increase in profits is slower. COOL is not going to trade on market share or revenues, because the market is totally new, and REAL market share is very, very difficult to measure. COOL is going to trade based on whether people/investors believe that in the future (next 1-3 years) consumers are going to buy electronic equipment over the Internet from COOL's web site instead of from some other companies' web site. Circuit City, shopping.com, Ibuy.com, CompUSA.com and others (including AMZN, YHOO, etc.) are going to compete with COOL, and only if investors believe COOL is where people want to shop, is the stock going to go up (and stay up). Elroy