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Update On Pawnbroker.com
(OTC BB: PBRR) |
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Pawnbroker.com's
site finally opened for business today. The opening was four days
late, which is nothing in the world of software development and IT Technology.
Many thanks to our members that alerted us and shared their experiences
and thoughts about the site.
The company's big mistake was to
announce the opening prior to be having the site ready for deployment.
This is far from fatal, and we are hopeful that the company has learned
a valuable lesson in dealing with the expectations of both investors and
consumers. In short- as a policy it will always serve you best to
under promise and over perform. Your audience will always
respect if you adhere to that policy.
A note on the very positive side:
The opening of the site coupled with coverage from our newsletter and other
publications has sparked a great deal of interest in the stock.
Prior to our edition on March
10th the stock was trading anywhere from 20,000 to 50,000 shares per day
in the $6.50 to $8.00 range. Since that date the stock traded over
1.5 million shares for three days, and nearly 1/2 million shares for three
days. It hit a high of $17.875, and settled in to the mid $13 range.
We believe that this stock
is now positioned to move on to higher levels pending the market improving.
Last week was about as volatile as it gets for small caps and technology
issues. Today was even worse. We expect the market to firm
up for the remainder of the week and bargain hunters should do well in
both small and microcap stocks.
As promised, we went to Pawnbroker.com's
site and bought something. We spent a fair amount of time setting
up an account and made a purchase. Here is a quick review:
We went in with our expectations
extremely low after last week's delay, and were pleasantly surprised to
find a simple and functional site with a lot of merchandise for the first
day. For jewelry lovers this site will be a bonanza of bargains.
We started navigating the site in
the morning and looking at merchandise. We put offers in on several
items, and established a wish list of items we did not find on the site.
Pawnbrokers will have the ability to access our wish list and fill our
requests if possible. When we got back in the afternoon several of
the items we were thinking of purchasing had been sold, which is an excellent
sign if you are a shareholder.
There were only a couple of weaknesses
that we found. It took us a while to figure out how to set up an
account. You have to start the process of buying or bidding on something
to do that. We also filed a question about the shipping cost on the
purchase, and were unable to find any mechanism for canceling the transaction.
These are features that need to be improved upon. We e-mailed their
customer service department for help, and have not heard back yet.
One of our members informed us that
their e-commerce solution was down for a short period of time, and that
during that time he missed a chance to buy something that was later sold.
We view these as normal internet growing pains, and even the larger e-commerce
sites have the same recurring problems. Thanks for your feedback
Dale.
We found that the best way navigate
the site and look for merchandise was to go to the View Gallery Items
button on the lower left hand side of the home page. Once on
the gallery page, there is a pull down menu of categories that you can
use to find merchandise you might be interested in.
The Free Fall feature on the
home page is also very exciting. There are several items advertised
that keep dropping in price until they are sold. The price drop schedule
is specified under each item.
On the whole our experience was excellent
for a first day. We expect this site should to evolve and become
very heavily trafficked prior to their grand opening. A multi million
dollar nationwide advertising campaign is also planned to bring shoppers
to the site.
We believe that investors have a
good shot at a superstar stock here, particularly if you don't try to micro
manage the investment. Give it 90 to 180 days to mature and be recognized.
Pawnbrokers were selling merchandise today, and if Pawnbrokers can sell
they will participate. More merchandise equals more shoppers, which
equals transactions and appreciation in the company's value. It's
an exciting picture for shareholders. Remember, even from these levels
the stock has a lot of upside potential when compared to Ebay's $28.3
billion market cap. Another double from here would still be a small
fraction of Ebay's valuation.
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