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

To: Ruyi who wrote (27040)	4/27/1999 2:48:00 PM
From: Nicholas Rauch	Respond to of 37507

If it's such a joke, why the h*ll don't you go PLAY somewhere else? Nick

To: Ruyi who wrote (27040)	4/27/1999 2:59:00 PM
From: Cameron	Respond to of 37507

OK.... I take it back.. you haven't smartened up at all. I thought you were using the hyphen as a pause. Since you are a slow learner I suggest that you go back and read yesterdays accounting 101 lesson. I've included it here so that you don't have to go looking for it again. >>BII current has - gross margins relative to a 85% g.m. for Ebay, when using same accounting methods<< ACCOUNTING 101 - Originally posted April 26/99. Dagan, I never respond to your innuendo because I find it childish. If you are going to try and warp the truth however I think a response is called for. Obviously you've never studies accounting. eBay is not a retailer it is a consignment reseller. It accounts for revenue in a totally different way. In fact, because it is reporting revenue as the commission it makes on consignment sales it really shouldn't have any cost of goods and should have 100% GP. You CAN NOT compare this to uBid's or bid.com's GP. For example... if you are eBay and someone wants to sell a TV to $100. You sell it for them on consignment and charge them $10. to do it. You report $10.00 as revenue. There is no cost of goods because you never owned the goods at any point during the transaction meaning that theoretically your gross profit margin is 100%. If you are bid.com, if you buy a TV at wholesale for $90 and sell it for $100, then you have a cost of goods of $90 and revenue of $100.00 resulting in a gross profit of $10 or 10%. In both cases you have the exact same level of profit from selling the TV... but because you actually took ownership of the TV to sell it you account for it differently. Dagan... this is accounting 101 stuff!!! In terms of operating margins... yes it is roughly double bid.com's. That is because they are larger and have achieved critical mass. Administrative and marketing/sales expenses are discretionary and relatively fixed. Therefore, as your revenue increases, your operating margin will increase. To achieve a comparable operating margin bid.com will have to increase revenue. Nobody is disputing that. It is happening!! It will continue to happen!! Share price is based on the discounted value of expected future profit. Each of us has to decide whether they think bid.com will make a go of it and what the potential is. That will determine what people are prepared to pay for bid.com. As I've said before, uBid is currently comparable from a performance point of view with a slight lead (maybe 5 months). There is no doubt that bid.com is catching up quickly and has a number of things going for it that uBid doesn't. In the long run I think bid.com will win and not only that, I think the difference in potential more than makes up for the difference in the number of shares outstanding. I think that once people do their own DD they will agree and in the short term bid.com will be valued comparably to uBid. Once bid.com proves this is the case (ie. in 12-24 months) I believe that bid.com will easily pull away from uBid's share price. Time will tell. Each of us has to do our own DD based on the facts available and our own opinions as to future potential. As you are so fond of saying whenever the price drops, market forces will determine the price and indicate what most people think of the long term potential. You constantly try to twist the truth and make misleading statements... either that or you don't know what you are talking about. I don't know which it is but this particular arguement is getting very tedious.