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

To: hoyasaxa who wrote (2416)	12/8/1998 4:48:00 PM
From: sam	Read Replies (1) \| Respond to of 4903

O.K., I'll bite. So...why do YOU "like" ONSL?

To: hoyasaxa who wrote (2416)	12/8/1998 5:35:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 4903

Here's an article which may help you on ONSL: search.internet.com quote from the article "If this new business model differs from Onsale's initial vision, the distinction does not bother most industry analysts who say they expect Onsale will maintain a significant lead over the growing number of online auction sites. " this was probably spoken by Sosnick. obviously, whoever said it, has reason to believe that ONSL will maintain it's current dominant position other brief reasons for onsl: 1) among highest brand loyalty on net (returning buying) 2) needs little cash to run operation; (an older article, but remains true) search.internet.com 3) shifting sales to "flat-priced" model is helping bottom line and will probably turn ONSL to profitability sooner than expected. Last quarter Kaplan stated nearly 10% of sales came from flat pricing, and the "express bid", as it's called, had been operational only two months search.internet.com 4) sales are increasing to nearly $1 mil a day, increasing at about the same pace as Amazon.com 5) ONSL's new relationship with Softbank Japan is generating additional business to business sales there; IR's comments regarding softbank Japan is that the staff there is seeing significant pick-up 6) Kaplan isn't afraid to tweak his business model to meet the ever changing requirements of the net 7) We all know that although ONSL is the sales leader, they're afforded significantly less valuation (price to sales) as other nets. Even Cool trades at 10 times sales, while ONSL trades at 3X - average for many companies NOT conducting net business. 8) Enterprise value of ONSL started out at about $134.19, among the highest of the nets trading, and has continued to increase since it's IPO 9) They have $0 debt 10) They have $55 million in cash, again, among the leaders 11) They're float remains small, with average daily trading about 50% of float 12) They're Developing relationships with other spot market industrial sites 13) Short ratio is 30% of the available float. 14) Actual float is much smaller than listed 6.3 million shares since mutuals/banks own over 60%, leaving float closer to 3.78 million traded 15) Management continues to own a significant portion of the stock 16) Developed relationship with Yahoo to begin person to person auctions (wherein listing is free). Auctions numbered 90,000 in the first two months of operation, already 10% of Ebay's. 17) Given's ONSL's valuation, it continues to be a takeover candidate, whereby premium afforded would likely be twice it's current trading value 18) The rate of bids placed are increasing 19) The average revenue generated per successful bid is increasing 20) They've only tapped a fraction of their potential market