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Technology Stocks : iBeam Broadcasting Corporation - IBEM
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To: Capitalizer who wrote (83)7/26/2000 9:28:35 AM
From: Walter Morton   of 148
 
I understand economies of scale as well as fixed and variable costs. It is very possible that, at this early stage in the development of these companies that, much of the costs that you would normally think of as fixed would seem variable since the companies are still growing so rapidly. Look at AKAM for example. They have increased customers from 425 to 2,100 and they still have huge losses. The good new is that losses per customer have reduced for both companies. However, it could take another year before either of these companies achieve the economies of scale necessary to substantially reduce overall losses.

Having said all of that, I did factor in quarterly reductions in losses for both companies. However, again, it is just quick guessing that did not include any market research, talks with management, nor a review of each company's business plan.
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