Midland Park, New Jersey (PRWEB) December 19, 2005
Entrepreneur and private investor Les Fox, owner of the Amazon Affiliate website Logopogo.com believes that "Earth's Biggest Store" will vastly out-perform the expectations of highly respected stock analysts in the next two to three years.
"I'm putting my money where my mouth is," said Fox. "I've invested a significant amount of time and dollars in Logopogo, which offers all 10,000,000 items on Amazon in a unique and creative format. I've also invested in Amazon stock, and I will continue to buy on both strength and weakness."
"In 2005," Fox notes, "Amazon shares traded between 36 and 50, after sinking as low as 16 in 2002. Revenues have remained stable and predictable at $8 to $9 billion dollars, although very strong 2005 Holiday sales could result in an upside surprise. Amazon has sold over 100 million items in Novemeber and December. No one knows yet if the average price of those items is the usual $20, or whether it might be more like $30 to $35, potentially pushing Amazon's revenues toward $10 billion dollars."
"People don't realize that Amazon is bigger and stronger than both eBay and Barnes and Noble, their main competitors. Amazon has 9,000 employees, compared to eBay's 8,100, and generates twice as much sales. Of course, eBay keeps a higher percentage of its revenue, which is mainly generated from auction fees, not a percentage of sales. On the other hand, Barnes and Noble only sells $2.5 billion dollars a year, and needs a sales force of 42,000 people to do it. Amazon is an amazing, powerful brand in the new world of internet commerce. So is eBay."
Fox, who has accurately predicted two major turnarounds for eBay, which recently shot up from the low 30's to the mid-40's, says that Amazon could also re-invent its auction business by 2007. "There are only a handful of companies that can potentially compete with eBay in the auction market. One is AOL, who does not offer auctions and who promotes eBay. Another is Yahoo, who has conceded most of the online auction market to eBay. And then there's Amazon, who has focused its attention in other areas, and rightfully so."
Fox does not think that Google is likely to offer online auctions for at least a few years, although they are trying to compete with eBay in other areas. He also feels that MSN is not a player in the tricky auction market.
"Amazon's greatest asset is its loyal customer base, which stems from book sales. But they've earned high marks for many other products, including videos and music CD's, and their overall customer satisfaction rating is impressive. I see Amazon promoting its image as a gigantic online department store and expanding its product line from 10,000,000 items to as many as 15,000,000 to 25,000,000 items by 2007. This will undoubtedly translate to much higher sales and profits, since their overhead will not increase proportionately."
Fox says his own company, Logopogo.com, is poised to benefit from the public's growing interest in non-book products on Amazon.
"We're here for the long haul," he says, referring to the fact that he has turned down buyout offers in the $5 million range for a website that is just getting started. "We have our own customer base. Millions of people know who we are, and we intend to kick our national advertising campaign into high gear in 2006. We hope to sell $100 million worth of Amazon prodocts by the end of next year, maybe more."
Maybe a lot more, if Fox's past track record is any indication of his future success. Les Fox is a New York Times bestselling author, an art and rare coin dealer and a builder of custom luxury homes in New Jersey and Florida.
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