To: W Lloyd R who wrote (9934 ) 2/16/1999 10:08:00 PM From: waldo Read Replies (2) | Respond to of 37507
Frequent Updates on companies featured in Bidding On Bay Street are now provided by e-mail in BAY $TREET BYTE$. If you wish to receive a Free Trial, please send your e-mail address to: bidbayst@nbnet.nb.caas with BYTE$ as the subject or message. ------------------------------------------------------------------------ Featured August '97 @ $1.10 BID.Com is into the second quarter of making an appearance on the TSE's most active list, on almost a daily basis. This is somewhat unusual and may even be record-setting. All of this activity must be bothersome for others in the investment industry with their own stocks to trade. For example, three million shares of BII traded in a day at around the $6 level = $18 million not available for trade in other stocks. This may be the reason we have seen a highly unusual phenomenon: small brokerage houses like Taurus in Toronto and Acumen in Calgary, with internet stocks of their own to foster, actually issuing 'avoid' or 'sell' orders on BII. How does one issue a 'sell' on a stock upon which one has never issued a 'buy', and keep a straight face? It is never good practice to promote one product by discrediting another. Neophyte 'boutique' Taurus may have shot itself in the foot - again! The analyst justifies the downgrade on the basis of very old information (especially in Internet years) and persists in lumping BII into the pure auction category, which no longer applies. That is what happens when one does not interview the management of the company first or read the press releases. I suspect the complaint of low margins no longer applies either, although we may have to see early 1999 results before this can be said with certainty. BII has sold its first technology license (to American Interactive Media, New York: the global cable content provider); has announced a new strategic alliance to sell advertising on its websites; has announced an alliance to add jewelry to the product list (D.G. Jewellery); and has just announced the first sound cards (electronically exclusive to BII) are about to go on sale. All of these recent announcements are a move away from the pure auction business into high margin revenue sources. Investors still await the 'big news' - an announcement that BII has chosen its US market-makers and made application to trade on NASDAQ. There is no doubt this will be an extremely important event that will expand BII's investor-reach many fold. It is such a unique, wonderful story and BII should get analyst coverage in the US - finally. But in a more fundamental sense, the most recent announcement of BII's launch of collectible audio cards may have more far reaching effects in terms of improving margins and meeting management's stated goal of early profitability. THE NEXT CABBAGE PATCH DOLLS? BII will soon begin a massive ad campaign on radio and TV sports events/channels in the US announcing the next generation of collectible cards. They will only be available for purchase on the BID.Com site. This is a two-star offering with the picture of Jordan making the shot and the voice of sportscaster Bob Costas - a high quality photo with high tech adjustable digital sound. BII is working hand in hand with The Upper Deck, which has the exclusive rights to Jordan memorabilia and many other high profile stars, in order to provide this first US sound card. How many Michael Jordan "Final Shot" cards can BII sell? If BII could sell one million cards it would add approx. CDN$22 million in revenues in 'one shot' (no pun intended). Margins on the card/player set are expected to be at least in the 50% range - you do the math! How many actually sell will depend upon the success of the campaign and the interest of the public in this novel new generation of sports card. The subject and the timing could not be better. And this is just the beginning. The player can be used with any number of new card offerings. Unlike dolls and furbies, collectors cards have proven to have longer lasting appeal and an almost infinite supply of possible subjects. Every time these cards are advertised the brand "BID.Com" is advertised as well. Every time a card is ordered, BII gains a new customer to the site who only has to enter a password the next time he/she wishes to purchase from BID.Com (delivery/credit instructions are already in place). One of the many beauties of doing business on the Internet is the ease and cost effectiveness of communication. Every BII collection card customer (as well as other customers) can be notified instantly by e-mail of the next offering, effectively at zero cost to BII. There has never been cheaper more effective means of marketing to a large target audience like this before. In Canada, the Paul Henderson cards are already available and the orders are growing. BII has broad distribution/marketing plans in place for these cards, based on the "Where were you in '72?" theme which will strike a cord with the majority of Canadians old enough to remember. Super gift for sports fans. Excellent TV interview Saturday on Investor's On-line. Paul Godin answered the main question on investor's minds: "When will BII trade on NASDAQ?" by saying that BII has been working on that opportunity for a number of months and "I think you can expect that announcement very soon." I have changed the order around, but the essentials of the interview are provided below from notes taken during the interview: stockhouse.com W