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

To: Denise D who wrote (11680)	3/16/1999 7:09:00 AM
From: Mr. Forthright	Read Replies (3) \| Respond to of 37507

<<Being public on an exchange (as opposed to OTCBB) asserts its credibility.>> I totally disagree with you on that one. <<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.>> I must confess Denise I don't understand that statement. What will keep Internet stocks up in the long term will ultimately be their ability to generate profits. They can't sustain unrealistic valuations based on a dream alone. In the case on BII the numbers demonstrate that in order to turn a profit it has to significantly increase sales and its gross profit margins while keeping expenses under control. Let's assume that they slash expenses this year by 25% from last year's level of roughly $20 million. Let's also assume that they can achieve gross profit margin of 14% (double from last year's 4th quarterof 6.9%). They would then need about $110 million in sales to break even. Sales: $110 million Gross profit: $15.4 million SG&A: $15 million Net income: $400,000 All I have read on BII calls for sales of $50 million to $60 million for this year. So please point out to me (and the rest of the thread) how the company expects to be profitable by year end. I guess they are forecasting being at a $110 million yearly run rate by the fourth quarter ($27.5 million per quarter vs. $6.4 million in Q4 98). Not impossible. But is that what people are expecting? Please advise. Thanks. P.S. I am most interested in discussing numbers as you know. Very few people on this thread take the time to use their calculators. I hope you can help the thread by pointing out where my argument is wrong.