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

To: RON BL who wrote (4047)	4/11/1999 10:13:00 AM
From: Jim Johnson	Respond to of 4903

Ron, Yes, E stocks are a very different issue. Personally I have no experience with Egghead or Etrade or Ameritrade, but I have purchased many times from OnSale. But my comments were not regarding E issues, but to business and share value basics. When customers are not satisfied, repeat business and referrals go down, sales lag expectations (and perceptions). When new numbers come out stock prices fall instead of climb....very basic stuff. What my comments were some months ago was that I think OnSale service levels have not kept up with growth and consequently could negatively impact future numbers. Since we investors are not privy to day to day information, we are constantly working in arrears, so to speak. We get issued yesterdays financials and both individually and market wise we work on future predictions. When performance falls short of those predictions it causes a negative reaction in the marketplace. So we as individual investors use yesterdays information, blend it with todays input and use that to form opinions and make decisions on where it is going in the future. From there we win or lose. As for Internet companies pricing going up while customers suffer poor service, that is a matter of investor perception (and dreams) and financials, business basics and such have seem to have little impact. The value system of Internet stocks is entirely different. A highly overvauled company issues highly overvalued stock to buy out a highly overvalued company and thereby reinforces the highly overvalued pricing and overvalues themselves even further. Make sense? No, I don't think so, but it is happening anyway. Perhaps a problem with OnSale is they are not percieved to be in this market segment, but are percieved to be in the traditional market. If they were percieved to be in the same market as Yahoo or AOL you would probably be correct, customer satisfaction, performance, profits, all would matter little. The only thing that would matter were perceptions. Good luck to you! Jim J