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Non-Tech : InvestRight Club Challenge -- Ignore unavailable to you. Want to Upgrade?

To: V$gas.Com who wrote (1157)	3/28/1999 11:22:00 PM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 2662

Why might HouseHold Direct - (RDIM, OTC BB .60) be considered a compelling buy at the current stock price? What is it that RDIM is doing that makes HouseHold Direct uniquely well positioned to take advantage of selling products via e commerce. Even better positioned than traditional wholesale buying clubs like BJ's: biz.yahoo.com First lets discuss what has made the Walmarts, BJs, SAMS and COSTCOs so successful. We all know that for years lots of companies succeeded quite well with well established retail sales system. Unfortunately for consumers to get anything remotely close to a good buy we had to wait for products to go on sale. Those sale items have not always been exactly what we want as consumers but often times people will buy anything just to take advantage of a bargain. We all know people who will buy anything simply because it is on sale. That being said we have had a proliferation of companies willing to sell us many products at deeply discounted prices. Never mind that these products are often overstocked or discontinued items, people buy them anyway. Traditional retail selling channels have also been seeing competition from entire television channels dedicated to selling us more items for less that we also often don't really need or want. We have all watched QVC and the Home Shopping Channel and the presentations can be spellbinding. Along with overstocked and discontinued items being sold for less these companies also specialize in the sale of collectibles and memorability. All this competition and we haven't even mentioned e commerce yet. Still it should be obvious that it has become exceedingly more difficult for traditional retail companies to gain market share because we as consumers are all excited by the opportunity to buy those things we either need, or think we need, for less without waiting. Wholesale buying clubs are selling goods for less and their memberships and profits are growing. QVC and the Home Shopping Network are also seeing growth and reaching forward to expand their horizons by taking advantage of new technologies and potential sales via the internet. Unfortunately for these companies someone has quietly been building a better business plan. I recently visited a private wholesale buying club in my hometown. I never knew it even existed before I invested in RDIM. Private wholesale buying clubs not only sell products at or near wholesale prices but they do it while selling complete product lines. Complete product lines? Not overstocks, discontinued items, collectibles and memorabilia? Yes complete product lines. The UCC Total Home club that I visited had catalogues from 750 manufacturers. I mean big name manufacturers and complete product lines at cost directly to consumers. UCC has built a membership base over the last 30 years that gives them the ability to buy these products as if they were a large retail store chain like Sears or Penny's. Those prices are passed directly onto members because they pay a membership fees instead of mark ups on their products. How much is it worth to a person to be able to buy whatever they want at cost? HouseHold Direct has already finalized the acquisition of PCS and will hopefully also conclude their discussions with Unimart soon as well. HouseHold Direct has stated that they will have 350,000 members by the second quarter of 1999. That's right 350,000 members and some serious revenue figures. biz.yahoo.com Technically RDIM has shown strong technical support at .54. Last Friday the stock closed just below .60 and I think it is a bargain. Why? Because HouseHold Direct already has relationships with a much larger number of manufacturers than even UCC Total Homes. HouseHold Direct will undersell those membership fees offered by UCC Total homes. HouseHold Direct will take advantage of e commerce to market complete product lines to members rather than just overstocks, discontinued items, collectibles and memorabilia. But what about those companies already taking advantage of e commerce? There are companies offering to give us the online mall experience. There are companies offering to sell us products online for less? This is where the real competition is at but not for RDIM. Why? Because no one can mark an item down any lower than the manufacturers cost. When HouseHold Direct's web site opens for business in the second quarter of 1999 RDIM will already have 350,000 members. RDIM will not be building a site and hoping for customers!!! Many of these members will already have internet access. Many more will use Web TV or buy computers to gain the added advantage of shopping from home. In addition shareholders will be tempted to become members and members will be tempted to become shareholders. Do I think RDIM is ridiculously cheap at .60? You bet I do. BTW that is great potential news for TSIG shareholders V$gas. Thanks, Jeff