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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Forthright who wrote (11596)	3/15/1999 9:09:00 AM
From: Denise D	Respond to of 37507

Canadian Stock Market Re-organization Today Today we might see the ASE and the VSE merge while the TSE and ME make some changes. Does anybody think this might have an effect on what we might see on the TSE? Denise.

To: Mr. Forthright who wrote (11596)	3/15/1999 12:57:00 PM
From: GoNorth	Read Replies (2) \| Respond to of 37507

Mr. Forthright, I'm not as confident as you that everyone can do the math, so for the benefit of those that have some difficulties in this area - Bid.com would need to generate $250M in sales at 8%GP before they would cover their expenses and begin moving into the black. >>What do sales have to be at 8% gross profit margins to cover $20 million in expenses? We can all do the math.

To: Mr. Forthright who wrote (11596)	3/15/1999 1:53:00 PM
From: Tiger USA	Respond to of 37507

Mr. Forthright, Why would BII management say they look to be profitable in the latter part of 1999. I completely understand your analysis, but also think that the combination of lower expenses and new diversified revenue streams with higher margins must bring that $250 million # down a bit. I don't think the market would have had a problem with BII management saying they would be profitable in 2000 or 2001 (as other I-Nets have). BUT, now that they have said late 1999, it would be a negative not to meet that expectation. So again, how and why would they have forecasted profitability? John

To: Mr. Forthright who wrote (11596)	3/15/1999 11:10:00 PM
From: Denise D	Read Replies (1) \| Respond to of 37507

Forthright, I agree that we have to turn to a number of ways of valuating internet stocks; however, I am at a loss as to who deserves the valuations and who do not. Certainly we can look at it many different ways, but the market is all over the map. We see valuations of company stocks that clearly lose more money than BII. Yet, in a growing IT company, hitting hard and fast is the way. If the investment can continue until it hits that critical mass, then the valuations will prove itself. Although BII has been operating for a few years, it has only become aggressive in the past year. Obviously Bid.Com going public was the way to fund these moves. How can a company like Bid.Com differentiate itself from others when looking for strategic alliances? Being public on an exchange (as opposed to OTCBB) asserts its credibility. And in turn, it must do something expansive in order to secure public funds. So, who is to say who sees great things in a company like Bid.Com and who thinks it might not achieve the goals it sets out for itself? At my age, interests, and career experience, I believe Bid.Com has great potential for all it sets out and more. Do I worry about profit margins and cash burn? Of course. I'm sure the management of BII have their own concerns. Do they overlap? Probably. Surely Paul Godin and his associates didn't just fall off the IT truck. Those who do not live and breathe IT might be more skeptical. They may feel less comfortable with high valuations and rely more on traditional methods. I see all the time where some managers (MBA's mostly) like to take it slow and easy, I see some managers who are hands-on IT for 25+ years who want to take their companies upward at a quick pace. Some make it; some do not. Excellent management of the company, and some checks and balances, can make an fantastic investment opportunity for the likes of us. For now, I prefer to valuate a company based on the gut feeling I get in the investment itself. I've spent a considerable amount of time on learning BII – way more time than it's worth in my investment portfolio. I still don't know what it should be priced at, because its competitors' valuations don't make any sense either. This is not to say that I won't consider using a method that seems to be the most successful in valuating the likes of Amazon and eBay as well as BII, VERT, and the rest. Denise.