Another Try

In late September, I wrote a profile on (BNBN) (“ Trying to Come Up with a Happy Ending”), thinking it was poised for a nice move.

The price was at 18-5/16.

The price now? Well, it’s at 18 7/16.

Yet, during this time, the company has been making smart moves. While is entering a myriad of unrelated businesses,
is focusing on its strengths.

Just yesterday, the company struck two important deals. One was with
Cendant to purchase and the trademark. After all, it’s no
fun to type in a browser. True, the company has been
promoting; although it is hard to get a better name than

But there was more. As part of this deal, will
cross-promote with Cendant online properties, such as and also struck a deal with Netmarket Group (NGI) to become
the exclusive online book and music retailer. Netmarket Group runs,, and

Moreover, the company has been leveraging its platform, but not straying
from its core competencies. The company recently added electronic greeting
cards, as well as prints and posters (which are museum-quality and range in
price between $35 and $500). is translating its momentum into strong financial
results. In its latest quarterly filing, sales surged from $15.6 million
to $49.1 million, which was $9.1 million better than analysts’
expectations. The company added 581,000 customers and expects to have 3.5
million by the end of this year. Of course, this does not come close to’s 13 million customers, but is ranked fourth
for e-commerce sites according to MediaMetrix.

A key advantage is that has a preexisting distribution;, on the other hand, must spend billions developing their own.
This helps explain the controlled burn-rate of In its
last quarter, the company lost $21.9 million, which compares to $18.6
million in the same quarter a year ago. Actually, the losses are mainly
the result of heavy marketing expenses, which were $26.3 million in the
latest quarter.

The company has no long-term debt and $561 million in the bank. I suspect
there will be more surprises on the upside and eventually, investors will
catch-on to the solid fundamentals. It has taken some patience, but it
should be worth the wait.

Introducing Internet StockTracker, the new weekly e-mail newsletter from Corp. Every Friday will deliver to your e-mail
in-box the latest performance data on individual Internet companies and
their competitors. Internet StockTracker will deliver to you all the
statistics you need to assess the week’s activity.
Subscribe today and receive the Charter Rate of $157 — a savings of
$70 off the regular subscription price!

News Around the Web