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

To: D.J.Smyth who wrote (4127)	4/16/1999 6:05:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 4903

Darrell, this sell-off has absolutely nothing to do with Onsale's prospects and everything to do with the nature of the stock. As Grace mentioned, there is zero institutional support for this stock. It is almost all retail. And the shorts (institutions) know that they can run this stock over since no one will step in to defend it. As far as the company's prospects, I don't know. Their margins will obviously come under pressure due to this latest stupid campaign, but the sad thing is that Amazon does the same thing and that stock is at almost record levels. It's not the company, it's the stock. As you know, usually the day after a sell-off, the stock sells off even more as desperate holders look not to be the last one out the door. Just look at Oracle, etc. I bought down to $28 5/16, but am not confident we won't see that on Monday again. I am desperately hoping the company steps up and says something and that's why I held. They are on the verge of being sued for incompetence as you probably might suspect. I don't understand why they let the Street run all over their stock as they do. After all, as you know, insiders hold most of this company. You and I lost money today, but they lost SERIOUS money. I would think that they would do something to assuage the street. They seemed pretty confident on the call that they know what they're doing. Obviously, the analysts disagree. IMHO, if they have $40MM in cash, they should buy 1MM shares of stock back here. That would leave them $10MM to pay bills. If they don't, then they too have no confidence in the company's prospects, and I will bail and take this loss. The sad thing is my cost basis is about $33 or so and I don't currently feel like I'll ever see that again. Sorry about being lengthy, but I've seen this happen before. You mentioned Iomega, that was a classic example. However, Iomega couldn't say anything because their business model doesn't work. Onsale's model should. However, I guess no one believes it though. Onsale should be shopping this company around right now. If they can get $45 (which they should be able to with their revenues), they should take it and find other work. That's it. Not going to think about this until Monday now. P.S. The funny thing is that a $4-$5 haircut is fairly normal for Onsale. It's like it's just another tech wreck day for it. I just feel sorry for anyone that paid over $40 for this stock. I don't think they'll ever see that again.