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Re: bbotcs post# 132

Tuesday, 01/11/2005 11:41:10 AM

Tuesday, January 11, 2005 11:41:10 AM

Post# of 33753
ok, here's my thinking. CEO is a venture capital type. He has dealt with at least two public companies. They are still trading and have been in business for many years. If he was orchestrating a big pump and dump, he must be figuring this is his last involvement in a public company because if he doesn't have the goods to back up .30eps or something close, then he will be labeled a crook and he won't be able to publicly declare his involvement in future investments or turnarounds. Why would he kill the golden goose???

He and I talked about this subprime used car business having a sleezy image. Only the involvement of the GPS unit makes this a good investment because it's sexy enough to overcome the bad used car lot image AND the average investor(that's me) can understand the application of technology to this business. It increases margins on the car sale, the car loan AND increases chances of recoverying the car if bad things happen. It's a home run in the used car business.

So I am thinking this is technology at its best. Taking a business that is as common as Starbucks and transforming it into a money maker. Think about Starbucks. They took all those sleezy greasy spoons that said CAFE on the outside and charged $.10 for a cup of coffee into fancy schmanzy latte' places and charge $3.50 for the same cup of java with some whipped cream or milk on top. What a concept!!!

Tell me you are taking the neighborhood breakfast joint public! What is your reaction??? Well, that's what Starbucks did. Every Mom and Pop cafe has been replaced by a fancy Starbucks and there is another 3 latte stands and Starbucks look alikes in the neighborhood for every Starbucks.

What if I told you I could increase margins all around?? What if I could make a lot more money selling used cars at $5,000 than you could selling new cars at $30,000??? Would you buy a franchise?? Less capital, less selling pressure, less cut throat price cutting? If you were in the car business would you be interested??

Ok, so this is idealistic but it's the big picture view if this guy can pull it off in a small way. That's the beauty. It's not like cellular or HDTV. You don't have to sell the whole country on the concept. It can work on a small scale. He figures he has several years in Phoenix before he will expand geographically. 8 car lots is his goal. If three can make .30eps, what can 8 do?? Bobwins



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