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Re: None

Monday, 03/26/2018 11:46:36 AM

Monday, March 26, 2018 11:46:36 AM

Post# of 307
I have watched this company for the past couple years. I think it is time to investigate further. I will be reaching out to management for answers on a number of topics. The company seems to be able to produce a profit and be cash flow positive from what I can find. If these numbers are correct then I don’t know why the shares don’t trade close to $1.50. Someone just needs to dig and find out why shareholders are being left in the dark about the current operations, financing needs going forward, plans to expand into other markets and how effective these advertising campaigns actually are at producing incremental revenue gains. They operate in a niche market dominated by the carriers, Apple’s buyback program, auction websites like ebay and one large trade-in website, Gazelle. Amazon has mostly removed themselves from the game by requiring sellers of cell phones to pay a minimum $40 per month to sell on their platform. This has caused a shirt to ebay for people will to sell and ship their old phones themselves. Ebay has much higher seller fees and can be intimidating to much of the market for private used phone sales. Which ebay does provide an easier platform to purchase used phones and other devices. This could be utilized by uSell to offload phones if higher prices can be obtained. Carriers and Apple offer convenience when buying a new phone. You just hand them your old phone and they give you a few bucks off the new one. This is the easiest transaction for the seller but also the lowest return. The Gazelle model appears to be the best balance of convenience and price. uSell has mirrored this process but on a much smaller scale. While not being a household name, they have been able to offer nice revenue growth to shareholders. This has not returned any profits for shareholders and the share price had steadily declined for the past several years. The market awareness of uSell seems to be minimal even with the national advertising campaign. People in the moment know about uSell but often revert back to Gazelle or the other methods of selling a phone due to name recognition or search results online for selling used electronics. Until this barrier can be crossed, uSell management will continue to deliver mixed results with declining shareholder value. They must double their efforts in online search result promotion, reassess the effectiveness of the national advertising campaign and analyze the Gazelle model and improve that industry standard to offer a better result for the consumer.