Lucky888--You're right. I mean why waste valuable advertising dollars on people who aren't even going to hang around to watch the ads 'cause they gotta go to the bathroom. Brilliant! Don't those PR folks know this? I think we both know that JamesT is out to lunch with his analysis.
However, you brought up a good criticism, as follows:
>>>The thing NZRO really needs to work out is to generate enough revenue to cover their telecom costs. If they can't do that before the IPO money being spent, they are dead.<<<
Well, it's a given that more people right now are signing up for NetZero than any other Internet Service Provider on earth--(I qualify my remark by stating I don't know specifically what's happening in China or India right now as far as sign-ups).
So, this said, NZRO is going to have the target base audience. No question about this. So then what happens? Well, it's very simple. They become extremely valuable--one more time, extremely valuable--due to an enormous subscription base. It's at this point that companies not like Looksmart or Adsmart take notice, rather it's at this point that companies like Proctor & Gamble take notice.
Consequently, NZRO will do well on its own merit. Or it'll become an extremely attractive candidate for acquistion, unless it moves out on an acquisition trail itself. Either way, long-term, something good is likely to happen. With the likes of Goldman, Compaq, IdeaLabs, et. al. behind 'em, I doubt any form of bankruptcy is in the cards.
Meanwhile, short-term it's a dynamite investment. And what happens long-term depends on how you do your due diligence. That's all! |
