The Thread Formerly Known as No Rest For The Wicked Message Board

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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: len bt who wrote (51406)	6/17/1999 7:39:00 PM
From: cirrus	Read Replies (2) of 90042

DRIV sets up the mechanics to allow software companies to distribute software over the net and gets commissions based on sales over the net. They don't buy any product or carry inventory. Cool. However, they count all software sales as revenues. Based on that they have a respectable price to sales ratio. Some analysts feel they should count only COMMISSIONS as revenues. If you do it that way, their price/sales ratio is on the moon, even by internet standards. (I've left out figures because I'm going by memory here.) DRIV signed up a number of blue chips like Wal-Mart on line, IBM and US West. They've got an interesting business model - bridging the old shrink-wrap method of selling software and the new internet method. Bottom line: I like it, but like all internets, haven't a clue as to how to value it. With the wide price swings today, apparently the market doesnt either. I'd watch it carefully, especially before earnings and go in on any obvious oversold conditions. Sorry I can't be more specific. Good luck.

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