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

To: ideaman who wrote (27130)	4/27/1999 4:24:00 PM
From: WhatsUpWithThat	Read Replies (1) \| Respond to of 37507

He can't continue to say the same thing over, and over, and over again. It is common in specific retail industries. It is according to GAAP. It passed the scrutiny of a Deloitte and Touche audit. It passed scrutiny by the SEC and the TSE. I'm sorry you don't think this is the right way to account for a loss leader, but until you are in a position to rewrite GAAP, accept it. Let's be done with this, OK? WUWT

To: ideaman who wrote (27130)	4/27/1999 4:29:00 PM
From: Cameron	Respond to of 37507

I personally don't think it is a "real problem" or anything to worry about. In fact, if they weren't reinvesting in their business to drive traffic to their site during their first year of operation I would be concerned.... be it through advertising, baseball caps, PR or price promotion (all of which they use). I once dealt with a product for one of the world's largest consumer package goods companies... after 4 years on the market it had never made a profit on this particular product and was still investing significant marketing dollars. That's the name of the game. Once you have the market share (or in bid.com's case the traffic) then you can focus more on improving your profitability. The standard life cycle for something like this would be (a) build awareness (b) generate trial (c) develop preference (d) increase usage. Clearly bid.com is somewhere between (a) and (b). Price promotion, advertising and customer service are all key at this stage of development.