Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gary Wisdom who wrote (4130)	4/16/1999 6:25:00 PM
From: Gary Wisdom	Read Replies (1) \| Respond to of 4903

Here's the WSJ take on today's carnage: FWIW, Onsale mgmt did not say margins would slide the rest of the year. They said that they can sell the atcost stuff at similar margins to those of the past and would increase traffic to the auction site. They did say that they plan on increasing advertising expenditures significantly, but felt from the limited advertising they've done already that they would recoup these costs in increased traffic and sales. Onsl mgmt did say that they would lower prices in order to dominate the market, but I seem to recall that they said this wouldn't be catastrophic in respect to margins as their costs are very low since they don't have inventory and have efficient systems. Once again, we find out what crooks the analysts are. They choose to hear what they want to hear only. What's so ironic is that I don't think any of the analysts on the call have ever held Onsale stock. I guess they're just trying to be heros to the shorts, which of course, they might be too. OnSale Falls 13% In Wake Of Analysts' Downgrades w NEW YORK (Dow Jones)--OnSale Inc. (ONSL) shares fell 13.5% Friday in the wake of a slew of analysts downgrading the stock over concerns that the company's losses will grow as competition heats up. OnSale, which Thursday reported a loss of 28 cents a share for the first quarter, said in a conference call with analysts that its gross margins will slide and its operating expenses will increase for the rest of the year as it expands its efforts to win more customers, according to a research note issued by Everen Securities Inc. Everen was one of at least five investment firms that reduced ratings on OnSale's stock Friday and an OnSale spokeswoman attributed the stock's decline to those actions. Other downgrades came from Needham & Co., Pacific Crest Securities, Raymond James & Associates Inc. and JW Genesis. Everen, which cut its near-term rating to underperform from market perform and its long-term rating to market perform from outperform, now expects OnSale to lose $2.35 a share this year, compared with an earlier projection of a $1.82-a-share loss. In 2000, Everen now expects OnSale to lose 70 cents a share compared with its earlier forecast for a 30-cents-a-share loss. The company reported a loss of 77 cents a share for 1998. OnSale shares closed at 30 5/16, down 4 3/4 on Nasdaq volume of 3 million shares. Average daily volume is 1.2 million.