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


To: JUDE GUZMAN who wrote (3542)1/21/1999 2:57:00 AM
From: Doug Fowler  Read Replies (2) | Respond to of 4903
 
This is confusing. Some of you are saying with atCost, Onsale will never touch the inventory, and others are saying they will.

If they do NOT touch the inventory, and they charge $10 per unit, then I would think their gross margins would go UP.

Yet, the CEO is saying the gross margins will go down.

So, is there inventory or not?



To: JUDE GUZMAN who wrote (3542)1/21/1999 3:52:00 AM
From: Doug Fowler  Read Replies (1) | Respond to of 4903
 
So much for Onsale's great "wholesale" prices with atCost.

Example: atCost is selling an IBM Thinkpad 770E for $3412.21.

onsale.com

Microwarehouse is selling an IBM Thinkpad 770E with a DVD drive thrown in for $2199, a price difference of MORE THAN $1200.

product.warehouse.com

Check out the links. They are the SAME EXACT part number from IBM: 954851U. Microwarehouse ADDS a DVD drive, and charges $1213 LESS than OnSale.

If this is what OnSale calls WholeSale, I say NO Sale.




To: JUDE GUZMAN who wrote (3542)1/21/1999 4:19:00 PM
From: Brian H.  Read Replies (1) | Respond to of 4903
 
Yes, if you consider that with just the Auction model, analysts expectations for next year were for close to break even. Now with the AtCost model, they are projecting a loss of $.97 for next year. That is if the model works. Hmmmm, something sound suspect here.

Brian H.