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22 pts

Opinion on  Auctions International Inc. (AUCI)
Wholesale Auction Technology Company Recently Went Public

Dec 04, 2007 08:13 PM GMT
Waterfall
Return Risk
-17.62% HIGH
Associate

Auctions International, AUCI.PK , recently IPO'd onto the marketplace. After a number of years developing their auction technology, a leading-edge online auction platform, the company has released their first 'product', aimed at the automotive dealer wholesale market, Autobidlive ( www.autobidlive.com ), a wholly owned subsidiary of Auctions International, Inc.

Reviewing their filings on www.Pinksheets.com shows their 15c-211, Initial information and disclosure filings, has been filed and includes some very detailed information on the technology they use for their servers (Oracle and Red Hat) and internet connection to make sure the systems are up 24/7/365.

http://www.pinksheets.com/otciq/ajax/showFinancialReportById?...

The chart has hit a double bottom today (1 month double bottom) after holding nearly steady around the $0.55 mark. Last time we saw this, it was followed by a move up over $0.65. With the current RSI, I believe we can see another similar move, especially with the recent press that has come out and the company pushing forward with its marketing campaign.

http://stockcharts.com/c-sc/sc?s=AUCI&p=D&b=5&g=0...

Management has indicated a marketing program to over 70,000 dealers is in the works. From their shareholder update release we see that is not the only marketing program they are pursuing:

"Our primary challenge is to increase our market awareness and demonstrate the viability of our business model. We have put in place several strategic relationships, such as www.CarrierRates.com and www.UShip.com , which allow our members to receive prices and bids on transportation services. These partners and others in the pipeline provide value-added services such as vehicle history reporting and listing services, which makes virtual trading reliable, easy and economically worthwhile. Our partners also will participate in co-marketing our services to their established customer base."

Future outlook for AUCI is positive as the company has not only begun using their in-house developed state-of-the-art technology through their wholly owned subsidiary, Autobidlive, they have also identified multiple commodity verticals, including industrial products, airplanes, artwork, stamps, and boats, which could benefit from its leading-edge online auction technology platform.

Additional information:

Website:  www.auctionsir.com and www.autobidlive.com

Share structure:

Outstanding shares: 44 Million
Restricted shares: 25 Million
Public tradeable float: 2 Million (Per IR 27.Nov.07)


Update 12/05:

Carfax is a very well known and highly regarded source for vehicle history reports. News today after the market close brings to light the direction Auctions International is taking. The recent shareholder update makes specific mention of agreements the company is working on to strengthen and expand their customer base. This alliance with Carfax is just the start of the whole marketing campaign. On the www.autobidlive.com  website, along with Carfax, are Autocheck (By Experian) and Car Proof (Canadian), 2 more vehicle history report companies that can be used by dealers.

Auctions International is focused on increasing their membership by making additional strategic alliances as they've done with Carfax.

Link to the after hours news - http://biz.yahoo.com/iw/071204/0335873.html

The move away from in person auctions to pure online auctions is happening rapidly. The costs associated with these regular auctions range from trip costs, hotel, car transportation, time away from the dealership and more. Making the switch to online auctions virtually removes all the costs associated with an auction, aside from the small fee that is charged on completed auctions (which is split equally between the buyer and the seller) and the shipping cost. With the www.uship.com and www.carrierrates.com alliances, the shipping costs are also reduced significantly in comparision to the regular in person auctions.

Scenario: A used car dealer has a customer walk in asking for a car they don't have on the lot. Normally they have to call around to other local dealers, or tell the customer they will research it and call them back. Imagine being able to tell the customer, sure, have a seat, let me go online and find the car you need, we can have it shipped right in. The customer never leaves the lot, creating a much higher sale turnover rate.


Update 12/11:

The company has continued to execute their business plan. Yesterdays trading activity sure did shake up the stock. The company put out a press release indicating there were no material changes that could explain the sudden drop in price nor the record high volume.

A call in to the transfer agent verified the share structure has not changed. The market for AUCI's technology is extensive and I continue to expect the company to do well as we move into 2008.


AUCI:  This call was made on 12/04/07 @ $0.52
Rating:   Positive   $0.52 (12/04/07)
Closed:   04/16/2008 @ $0.02 (-96.15% in 134 days)


+ Referring to this analysis:


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Who voted on this idea?
geoffr N/A 12/12/2007
Jason_hunt_006__2_
jayesquire N/A 12/07/2007


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