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

To: Tiger USA who wrote (16373)	4/4/1999 1:22:00 PM
From: Dave Kiernan	Respond to of 37507

List of Canadian IT Stocks. BII looking very good. itenterprises.com

To: Tiger USA who wrote (16373)	4/4/1999 1:38:00 PM
From: Barry K	Read Replies (1) \| Respond to of 37507

Hi John, Another BIG difference is in their business model, especially with regards to inventory and distribution. According to the UBID website, they maintain a 300,000 square-foot warehousing, shipping and configuration facility located in Memphis. This suggests that they either purchase or obtain their merchandise from the suppliers on consignment. As we know, Bid.Com does not maintain an inventory. They purchase and ship directly from the manufacturer after a purchase is made. This is great for Bid.Com for several reasons, including: No need to purchase inventory Warehouse (real estate) not needed Warehouse personnel not needed Transportation costs are greatly reduced Each of items directly impacts the bottom line (profit) of the company. Accordingly, Bid.Com would appear to have a much higher gross margin than UBID. Good new for us investors. Another thought that just came to mind regarding this is that by using the Bid.Com model, we are in a much better position to introduce international operations. We will not have to create distribution centers internationally. The idea of not maintaining an inventory is much greater than what alot of people understand. Regards, Barry