On a day when many Internet companies saw their stocks lose ground, shares of online retailer Cyberian Outpost (Nasdaq: COOL) climbed nearly 11 percent, rising 1-1/16 to 10-7/8, on Monday. Cyberian Outpost announced Monday that it has been authorized to sell IBM’s (NYSE: IBM) complete line of personal computers. Cyberian Outpost’s catalog will now include IBM’s Aptiva and Thinkpad i-Series computers.
This is certainly significant for Cyberian Outpost, but the company is continuing to battle low margins and fierce competition. Shares of Cyberian Outpost are still trading at less than 1/4 of their 52-week high. The good news is that the potential upside now looks much greater than the potential downside.
At 10-7/8 a share, Cyberian Outpost has a market capitalization of about $250 million.