posted on February 10, 2001 01:45:24 PM new
Someone in the BB Cafe posted some things that he saw when visting BBHQ this last week. One thing that stood out was that he saw new "thousands, if not millions, of dollars worth of new equipment" about to be installed. For a company that has publically reported they are $3 million in the hole, how can they afford this?
posted on February 10, 2001 06:20:07 PM new
iluvauctions-"Someone in the BB Cafe posted some things that he saw when visting BBHQ this last week. One thing that stood out was that he saw new "thousands, if not millions, of dollars worth of new equipment" about to be installed. For a company that has publically reported they are $3 million in the hole, how can they afford this?"
i don't know maybe you should call bidbay.com to get an answer for your question..
posted on February 10, 2001 07:42:50 PM new
"how can they afford this?"
How can they afford their employees? How can they afford the office rent? How can they affor the contests?
Well, it's called going into more debt. As stated in the SEC filing, Bidbay hasn't made one red cent of profit. Most dotcoms start out this way, and most dotcoms eventually fold.
posted on February 10, 2001 07:54:42 PM new
Yes freejack and most of the dot coms that folded had revenue. BidBay has reported only $17,000.00 in revenue on their SEC filing.
Take a look at eToys. They were the leading online toy retailer for the '99 Christmas Season. But with Toy's 'r' Us making their online move this year teaming up with the likes of Amazon, and Wal-Mart making their online presence know and couple that with the amount of revenue those two giants have in the "physical" world eToys just couldn't compete.
BidBay's only hope is to secure additional financing as reported by their filing. My opinion it is going to be extremely difficult to obtain additional VC with all of the dot com deaths this year.
So with that their last hope is the IPO.
It's a catch-22. They need the additional financing to make the necessary improvements to the site like adding more servers, plus advertising in order to prove to the investment world that they are a good investment...but without the IPO money...they are going to experience a certain amount of difficulty to do this.
Catch-22...vicious circle...whatever you want to call it.
