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

To: zurdo who wrote (3501)	1/19/1999 8:40:00 PM
From: Brian H.	Read Replies (1) \| Respond to of 4903

Zurdo, I have just been stating my opinions. As for the buying the past week, a lot of it was in anticipation of Yahoo earnings, and the whole internet sector in general. I also believe from reading this thread, there was anticipation of B2B news, and instead we all got thrown off guard with today's PR. Some facts from todays PR: - While the EPS are in line with Estimate calls of ($.14) - ($17) per share, the sequential revenue gains from this quarter to last quarter are flat. - Revenues for the quarter were projected to be $63 million, but they fell short with only doing $59 Million. - Entering the retail business of selling computer equipment with hopes of generating $100 million in revenues (They have no idea what they can do here). This is a highly saturated market place in direct competition with other much more established companies (IE. PC Connection, Egghead, PC Mall, Micro Warehouse, etc.) - Also stated that by entering this new line of business there will be "unpredictable cannibalization of the existing online auction business". They had the lead and were the first in their niche, and now they seem to be "cracking". - 355,000 orders were placed this quarter (So much for the Christmas season) compared to 350,000 in the previous quarter. (I do not see where that is exponential growth). - Margins from the "Direct Sales" will be lower than the Auction margins, which are going lower. - Several analysts have either downgraded ONSL or dropped coverage over the past couple of weeks. I am just re-capping the facts. I am not flaming this stock, but just stating facts for others to look at. No one knows on this thread or anywhere, where this company is heading, but I think we have established a trading range now. Until something substantial comes out, who is going to run this baby back to $100. Right now ONSL's business plan is being totally revamped, and there is serious question on whether they can make it work. Even ONSL states in their PR's the serious concerns and effects that are now present with this new model. I really hope this baby takes off for everyone here. I have my core holdings in two very solid non-internet companies and have some very nice profits locked in. This was my internet play, and I guess I was to late, and picked the wrong one. Brian H.