Neither 131-Shop nor Jumbomall has many brand name retailers, but there are other bargains on the stockmarket. But despite the bargains, several financial analysts yesterday claimed the only reason these companies were cheap was because they deserved to be. Only 12 of the 75 Internet players that reported their March quarter cash-flow statements showed positive operating cash flows. I think most of them are looking for a way out with credibility. It's very hard for people out there in the market.
Investors are very nervous about the space.
It's interesting listening to people try to make a case for a strategic fit. Most try to draw attention to customer base, revenue and, in dstore's case, the opportunity for a backdoor-listing on the stock market. Often the only asset of any true value is the staff. Programmers and other experienced e-commerce workers are expensive and hard to find. And, the much-expected wave of mergers and acquisitions has yet to occur.