Another pitfall for most online retailers is marketing. They have to spend buckets on advertising and other promotions to get people to their sites. Not Global Sports. Athlete's Foot and other partners spend most of the money for promoting their own Web sites. If that trend holds and Global Sports can crank up revenues, profits are realistic.
Revenues certainly look as if they are headed north, too.
So far, Global Sports has signed alliances with 13 partners. The economies of scale can be tremendous. Global Sports spreads the costs of Web design, inventory, and warehousing across all its partners. I believe in the company,'' he says. Short-sellers often can be leading indicators of companies headed for trouble.