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

To: AlienTech who wrote (3952)	4/1/1999 7:44:00 PM
From: D.J.Smyth	Respond to of 4903

Onsl stated (to us) that they're comfortable with the expectations to sell about $345 million total product this year. Trading at 2 X this year's revenue makes this about the cheapest 100% net play on the market. And they continue to be the leader in the Auction market relative to category (EBAY would be in a different category). Amazon's junglee is composed of a group of small companies with which ONSL has been competing against for two years. If Amazon's junglee hasn't made a significant dent in ONSL's sales yet, the probability is high that it won't do so. The junglee site has been running for several months now anyway. The junglee site may prove more confusing than it's worth. Finding products on the site for the "best" price is time consuming. There are some aspects of the site which need re-programmed. Why the market wants a business to business over an AtCost is different thinking. As soon as ONSL announces business to business with VERT (supposing they still go through with it), ONSL's price shoots up. Yet, it is much more probable that the majority growth of ONSL's revenue will be derived from AtCost for the next two years. Since 75% of those buying ONSL products are already businesses, what is to stop these same businesses from listing their products for sale on AtCost as long as ONSL establishes the relationship for product category? ONSL is also moving into Europe which should prove interesting. They're looking at a crowded field and low barrier to entry. However; the "low barrier" is about $100,000 million now in advertising and follow-up. AMZN's resources are also limited.