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.

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

To: Roman S. who wrote (24726)	4/23/1999 12:23:00 AM
From: F. Evans	Read Replies (3) \| Respond to of 37507

MARK PAVAN IS FEELING THE HEAT PEOPLE.....REUTERS STORY READ NOW.... Stock in Canada's Bid.Com gyrates on mood swings Reuters Story - April 22, 1999 23:44 By Lydia Zajc TORONTO, April 22 (Reuters) - Investors took Canadian hot stock Bid.Com International Inc. for a roller coaster ride on Thursday following a downgrade by Yorkton Securities. Shares in the online auction house, which sells products as diverse as computers and collectible Beanie Baby toys, dove to a session low of C$8.50 and then rebounded to rise as high as C$14.60 before falling back into negative turf. The stock ended C$1.45 lower to C$12.45. On Nasdaq, Bid.Com reached a low of $5.70, then climbed to $9.88 before closing $0.88 off at $8.50. The Canadian stock price of C$12.45 on Thursday was down 62 percent from an all-time high of C$32.35 set on April 8. A Wednesday downgrade by Yorkton Securities, the investment house which completed a few equity financings for Bid.Com, pushed the stock down early on Thursday. An equities trader said, "When you got your only big supporter doing that, it's there." Then the stock recovered and rose after some investors decided it had sank far enough, another trader said. Bid.Com President Jeff Lymburner told Reuters that "sometimes the markets work in ways that are very different from the underlying business." By day's end the negative sentiment prevailed and the stock returned to negative territory. Lymburner declined to comment on the Yorkton April 21 report. Yorkton analyst Mark Pavan said on Thursday that he has received hundreds of calls, some from irate retail investors, after cutting Bid.Com's rating to underperform from a speculative buy. He initiated coverage in May 1998, watched the stock skyrocket and then decided it was radically overpriced. In his commentary Pavan compared the company, which is based in Toronto and Tampa, Florida, to U.S. concern uBid Inc. instead of electronic auctioneer eBay Inc. because their sales models are more closely aligned. Bid.Com has a profit margin of 6.8 percent compared to 8.5 percent for uBid, due to a high turnover of low-margin products such as computers and electronics, Pavan noted. "Their margins are slimmer than those of their competitors," he added. Bid.Com is expected to report its first quarter results in mid-May and Pavan forecast revenues of C$8.4 million, compared to its 1998 fourth quarter when it sold goods totaling C$6.4 million. If Bid.Com beats his number, Pavan said he will consider revising his view. Lymburner cited Thursday's news that Bid.Com will host a unique live interactive auction on April 27 as proof that Bid.Com is rolling along and developing its business despite the stock turmoil.